Mining giant Glencore Plc indicated that it planned to invest US$1.5 billion to expand its Antapaccay copper mine in Peru, kick-starting a stalled mine expansion project.

The project is critical to maintaining copper production. Production has stagnated in recent years due to declining ore grade and quality. This project could extend the life of the mine until 2045 or 2050.

In addition, the electric vehicle revolution has dramatically boosted global copper demand forecasts for the next few years. As a result, copper could be in deficit after production and investment slow in crucial regions.

As a large copper mine in Peru, the annual output of Antapaccay has dropped from 221,000 tons in 2016 to about 150,000 tons, so the expansion project is essential.