Glencore's decision to sell off several of its Australian copper mines is being described as a win for small mining companies by industry analysts.
The move comes as global demand for copper, dubbed "the new oil", reaches unprecedented highs.
Australian firm Comet Resources recently signed a deal to acquire Glencore's Mount Margaret copper project in north-west Queensland.
Last month, Glencore entered into a binding agreement to sell its CSA mine in New South Wales, while Evolution Mining has taken over the Ernest Henry site in Queensland after a similar deal was announced last year.
As copper-hungry industries like construction, transport, energy and renewables demand more of the red metal, global stockpiles are running low.
Copper prices jumped 130 per cent last year, and its price per pound reached an all-new high of $4.9USD last month.
BHP's head of mineral operations for the Americas Rag Udd says the world continues to have an insatiable appetite for copper.
Copper prices likely to rise further
MineLife senior resources analyst Gavin Wendt said Glencore's moves had nothing to do with a lack of confidence in the sector.
"In the broad scheme of things, it's no surprise that a company of Glencore's size would be looking to offload projects like these – these assets really are not necessarily of relevance in terms of scale now," Mr Wendt said.
"It's all about market timing. We've seen copper prices at record levels, and [are] likely set to go higher.
"For Glencore, it's more a matter of offloading smaller operations than it is offloading copper specific projects."
In a statement last November to announce the Ernest Henry deal, Glencore said its commitment to north-west Queensland would continue with the Mount Isa Mines copper and zinc complex, copper smelter and Townsville copper refinery.
Glencore was contacted by the ABC for further comment.
Smaller companies getting a 'foothold'
Mr Wendt said the sales were a win for small Australian mining companies seeking a leg up in the resources sector.
"These mines are perfect in terms of scope and scale for smaller, independent producers, perhaps that are looking to get a foothold into the market in terms of acquiring a producing asset," he said.
Evolution Mining, the new owners of Glencore's Ernest Henry site, said it would invest more attention into the mine.
"The big thing that will change is that this goes from being a relatively small asset in the Glencore portfolio to a very large asset in the Evolutions portfolio," the company's executive chairman Jake Klein said.
"The current mine life is five years, but we'd like to see this have a 15- to 20-year life."
Global need for Australian copper
Australia is among the top 10 biggest producers of copper in the world.
With COVID-19 and rising costs stifling global productivity, and with fewer copper deposits being discovered, investment bank Goldman Sachs predicts that copper demand will increase nearly 600 per cent come 2030.
Australian miners are eager to fill the gaps.
Comet Resources managing director Matthew O'Kane said copper had become a "really critical commodity in the world these days".
"We see significant potential for the growth of this resource, it's a truly transformational opportunity for us," Mr O'Kane said about the company's purchase of Glencore's Mount Margaret mine.
The way the market is going, Mr Wendt expects to see more and more of the red metal extracted from Australian soil.
"Copper is going to be one of the key commodities of the renewable energy sector," Mr Wendt said.
"It's going to be in ever-greater demand, and that will mean a very strong price outlook driving even more activity in Australia going forward."
