California-based metals exploration company KoBold Metals, supported by notable investors like Bill Gates and Jeff Bezos, has made a significant copper discovery in Zambia, which is essential for renewable energy and electric vehicle production.

The Mingomba copper project could potentially rank among the world's top high-grade copper mines, comparable to the renowned Kamoa-Kakula mine in the Democratic Republic of the Congo. The business needs to publish an updated resource assessment and complete feasibility studies before deciding whether to construct a $2 billion plant, according to KoBold President Josh Goldman, per Bloomberg.

(Photo : GUILLEM SARTORIO/AFP via Getty Images)A general view of Victoria Falls in Livingstone on January 23, 2020. The Victoria Falls, a UNESCO world heritage site measuring 108 meters high and almost 2km wide.

Employing Advanced Tech in Exploration

Using drilling data, KoBold Metals uses artificial intelligence to improve Mingomba copper and cobalt exploration. According to Business Insider, the mining firm also plans to leverage advanced technologies, including a method akin to "Google Maps" for Earth's crust, to identify additional copper, lithium, cobalt, and nickel resources.

Goldman said KoBold spent close to $100 million on exploration last year and plans to spend more in 2024, on the "same scale as the majors" like BHP Group and Rio Tinto. He also noted that KoBold is unconcerned by low costs hurting battery metal projects worldwide. Goldman said the corporation is financially stable to undertake long-term investments, focusing on "what the price of these commodities is in 2035, and we don't care what it is in 2024."

Kobold Metals shareholders include Breakthrough Energy Ventures, backed by Bill Gates and Jeff Bezos, T. Rowe Price Group Inc., Bond Capital, Andreessen Horowitz, and Equinor ASA.

This discovery could position Zambia as a significant player in the global copper market. The engagement of influential figures and major investors underscores the potential impact on global copper prices and the energy landscape.

Notably, KoBold's exploration efforts extend beyond Zambia, with plans to explore more than 60 areas, emphasizing its commitment to addressing the growing demand for essential metals worldwide.

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Rising Global Demand For Copper

Amid a green revolution, with increasing demand for copper in renewable energy and electric vehicles, the move addresses concerns about potential copper shortages in the market. According to a CNBC report, the International Energy Agency emphasized the inadequacy of the current global supply to drive the necessary transformation in the energy sector, emphasizing the regional concentration of key energy transition elements.

Global demand for copper is increasing to 25.26 million metric tons. Forecasts show global copper consumption is rising. Over the previous decade, yearly average copper prices have been stable, reaching a record high in 2021, per Statista.

S&P Global stated that copper mine production is expected to hit 23 million metric tons in 2024, led by South America and the Democratic Republic of the Congo. Chinese smelting and refining capacity additions are predicted to boost refined copper production to 26 million in 2024.

KoBold's copper deposit discovery aligns with the broader context of the mining industry warning of copper shortages, particularly due to its critical role in renewable energy and electric vehicles. This development is crucial in the context of the US seeking to narrow the gap with Chinese dominance in African mining investments.

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