Against this backdrop, South Australia’s copper industry reached a notable milestone in 2025, with export values rising to approximately AU$3.1 billion, an increase of around 16 per cent year-on-year, according to figures released by the South Australian Government.

The state accounts for close to 70 per cent of Australia’s economic copper reserves, reinforcing its role as a key contributor to national supply. Data from the Australian Bureau of Statistics also shows the value of South Australia’s copper exports, including ores and concentrates, has nearly doubled over the past decade.

Why copper continues to attract global attention

Copper plays a critical role across a wide range of industrial and infrastructure applications. Its conductivity, durability and versatility make it a core input for construction, manufacturing, transport and energy systems.

Several long-term structural trends continue to underpin demand:

• Electrification of transport: Electric vehicles require significantly more copper than internal combustion vehicles, driven by wiring, batteries and charging infrastructure

• Renewable energy and grid upgrades: Wind, solar and power networks rely heavily on copper for transmission and distribution

• Digital and AI infrastructure: Data centres and advanced computing systems require substantial copper usage for cabling and electrical systems

As these systems expand globally, copper demand is expected to remain closely linked to broader economic and technological development rather than short-term market cycles.

A widening global supply gap

Recent research from S&P Global highlights the scale of the challenge facing copper markets.

According to the study, global copper supply is projected to fall around 10 million metric tonnes short of demand by 2040, equivalent to nearly 24 per cent of projected consumption. As demand ramps up, supply remains constrained by long development timelines and capital intensity. Even with recycled copper supply expected to more than double over the same period, S&P describes the imbalance as a potential “systemic risk” for industries reliant on copper.

South Australia’s copper operations

South Australia’s copper output is supported by a mix of large-scale operations and development-stage projects operated by global mining companies, alongside a pipeline of exploration activity.

Beyond established production, a number of copper-gold and polymetallic projects continue to progress across the state. The Geological Survey of South Australia has also increased its focus on minerals considered important to the global energy transition, including copper.

Together, these assets position South Australia as an important contributor to both Australia’s exports and global copper supply.

How investors gain exposure to copper

For investors, exposure to copper can take several forms, each with different risk characteristics and sensitivities.

Some investors gain exposure through mining companies, whose performance can be influenced by factors such as production costs, operational outcomes, regulatory settings and broader equity market conditions.

Others use exchange-traded funds (ETFs), which may provide diversified exposure to copper-related assets. Examples include:

• Global X Copper Miners ETF (ASX: WIRE)
  Provides exposure to a global basket of copper mining companies across regions such as Australia, Canada and the United States.

• iShares Copper and Metals Mining ETF (NASDAQ: ICOP)
  Tracks an index of global companies primarily engaged in copper and metal ore mining, offering broader exposure across the mining value chain.

• United States Copper Index Fund (NYSEARCA: CPER)
  Designed to track the performance of copper prices more directly through a portfolio of copper futures contracts, rather than mining equities.

Each approach offers different exposure to copper markets. Mining-focused ETFs are influenced by company-level factors and equity market conditions, while futures-based funds are more closely linked to movements in copper prices themselves.

As with all investments, these investment vehicles come with different risks and fees and may behave differently across market environments.

Final thoughts

South Australia’s copper export milestone reflects both the scale of its resource base and the continued relevance of copper within global supply chains. As electrification, energy infrastructure and digital systems expand, copper is likely to remain a strategically important industrial metal.

As with all commodities, copper markets are subject to volatility and a wide range of influencing factors. Developing an understanding of demand drivers, supply constraints and industry structure can help investors better contextualise developments across the resources sector.

Important information

This article is provided for general information and educational purposes only and does not constitute financial, investment or trading advice. The information does not take into account your objectives, financial situation or needs. You should consider whether the information is appropriate for you and seek independent professional advice before making any investment decisions. Past performance is not a reliable indicator of future performance.