China Boosts Copper Mining Industry
China has given the green light for a significant expansion of the Julong copper mine located in the Qinghai-Tibet Plateau, aiming to transform it into the largest copper mine globally. This move underscores China’s relentless efforts to secure a steady supply of this strategically vital metal.
The Vital Role of Copper
Copper, prized for its exceptional conductivity of electricity (second only to silver), serves a myriad of purposes in industries ranging from wiring to battery technology. With the global shift towards cleaner energy sources gaining momentum, the demand for copper continues to soar, cementing its indispensable status in the modern world.
Intense Global Competition
Given its finite nature, nations are compelled to secure access to copper reserves. A fierce rivalry between China and the U.S. to fortify their supply chains is evident. While China’s Julong mine expansion is a pivotal move, the competition extends worldwide.
Zambia boasts abundant copper and cobalt reserves. Both China and the U.S. are heavily investing in enhancing railway networks and infrastructure to enhance metal extraction. Each superpower is vying to establish a strong foothold in the resource-rich African nation.
Investment Prospects
Investing in precious metals, particularly those like copper crucial for the energy transition, presents a robust strategy. While navigating the futures market may be daunting for many retail investors, Exchange-Traded Funds (ETFs) offer a simpler alternative.
Teucrium’s AiLA Long-Short Base Metals Strategy ETF OAIB provides a solution. This ETF invests in critical base metals like copper and employs a market-neutral strategy, aiming for a positive return regardless of market direction.
OAIB tracks the AiLA-S022 index, known for its consistent performance. Between 2017 and 2023, the AiLA-S022 demonstrated an annualized return of 12.65%. The fund utilizes advanced machine-learning technology to achieve this impressive track record.
