Copper Explained: Where It Is Used, Where It Is Mined, and How It Is Priced
A plain guide to copper: what it goes into, which countries mine and refine it, how the LME and COMEX set the price, and how miners actually get paid.
Key takeaways
- Building construction and electrical products account for 65% of US copper use, according to USGS data from the Copper Development Association.
- Chile mined about 23% of the world’s copper in 2025, while China refined about 48%, per USGS estimates.
- Miners are paid the exchange price minus smelter fees, and the 2026 treatment and refining charge benchmark was set at zero.
Copper is the metal that carries electricity, which puts it in buildings, grids, vehicles and data centres. The world mines about 23 million tonnes a year, most of it in a few countries, and refines most of it in China. Its price is set on exchanges in London, New York and Shanghai, but what a mine actually receives depends on a separate set of fees negotiated with smelters.
Where copper is used
Copper conducts electricity and heat well, resists corrosion and is easy to shape. The US Geological Survey (USGS), citing the Copper Development Association, breaks down US use of copper and copper alloy products:
| End use (United States) | Share |
|---|---|
| Building construction | 42% |
| Electrical and electronic products | 23% |
| Transportation equipment | 18% |
| Consumer and general products | 10% |
| Industrial machinery and equipment | 7% |
Substitutes exist. The USGS notes aluminum replaces copper in some power cable, radiators and electrical equipment, optical fibre replaces it in telecommunications, and plastics replace it in plumbing. Recycling matters too: scrap supplied about 30% of US copper supply in 2025, per the USGS. For the AI angle, see copper and the AI buildout.
Where copper is mined and refined
Mining and refining happen in different places. USGS estimates for 2025, in thousand tonnes of copper content:
| Country | Mine production 2025e | Refinery production 2025e | Reserves |
|---|---|---|---|
| Chile | 5,300 | 1,700 | 180,000 |
| Congo (Kinshasa) | 3,200 | 2,800 | 80,000 |
| Peru | 2,700 | 340 | 85,000 |
| China | 1,800 | 14,000 | 41,000 |
| Russia | 1,300 | 950 | 80,000 |
| United States | 1,000 | 850 | 47,000 |
| Canada | 500 | 320 | 7,000 |
| World (rounded) | 23,000 | 29,000 | 980,000 |
Reserves are the part of known deposits considered economic to mine. At the 2025 mine rate of about 23 million tonnes, the USGS world reserve estimate of 980 million tonnes equals roughly 43 years of output. That ratio is a snapshot, not a countdown: reserves change as prices, costs and exploration results change. The USGS separately estimates identified resources of 1.5 billion tonnes and undiscovered resources of about 3.5 billion tonnes, based on a 2015 assessment.
Chile mines about 23% of the world’s copper. China mines about 8% but refines about 48%, because it imports concentrate from other countries’ mines. Refinery output exceeds mine output because refineries also process scrap.
In Canada, Natural Resources Canada reports mines produced 514,582 tonnes of copper in concentrate in 2024, up 6.2% from 2023, with British Columbia accounting for about 48%. Canada ranked 12th globally, with about 2% of mined copper, and exported copper and copper products worth $10.7 billion in 2024. Copper has been on Canada’s critical minerals list since 2021, covered in our critical minerals piece.
How the price is set
Three exchanges anchor copper pricing: the London Metal Exchange (LME), COMEX in New York, and the Shanghai Futures Exchange. The LME price is the most common reference in physical trade.
- LME contract. The LME trades copper in lots of 25 tonnes, priced in US dollars per tonne, with physical settlement. Deliverable metal must be Grade A cathode meeting set chemical standards. Prompt dates run daily out to three months, weekly from three to six months, and monthly out to 123 months.
- COMEX. The US contract is quoted in cents per pound. It usually tracks the LME closely, but can separate when US trade policy changes.
That separation became visible in 2025. On July 30, 2025, the US ordered a 50% Section 232 tariff on semi-finished copper products and copper-intensive derivatives, effective August 1, 2025. Ores, concentrates, mattes, anodes, cathode and scrap were excluded. The proclamation set out a possible tariff on refined copper imports of 15% from January 1, 2027 and 30% from January 1, 2028, depending on a Commerce Department report due by June 30, 2026. As of September 10, 2026, no decision on refined copper tariffs had been announced, according to Tech Times.
The math: exchange spreads and smelter fees
COMEX versus LME. The USGS estimates 2025 average prices of 480 cents per pound on COMEX and 440 cents per pound for LME cash. That is a 40-cent gap, with COMEX about 9% above London for the year. In 2024 the averages were 421.6 and 414.7 cents, a gap of about 7 cents.
Treatment and refining charges. Most mines sell copper concentrate, not metal. Miners pay smelters treatment charges (TCs), per tonne of concentrate, and refining charges (RCs), per pound of payable copper. These are set in annual benchmark talks. The 2025 benchmark was $21.25 per tonne and 2.125 cents per pound. On December 19, 2025, Antofagasta and a Chinese smelter agreed a 2026 benchmark of $0 and 0 cents, the lowest ever agreed in annual talks, according to Mining.com.
Converting the 2025 refining charge: 2.125 cents per pound times 2,204.62 pounds per tonne is about $46.85 per tonne of payable copper. Under the 2026 benchmark, that fee and the $21.25 per tonne of concentrate treatment charge both fell to zero. Lower fees raise the miner’s share of the metal price and squeeze smelter margins.
What moves copper
- Supply disruptions. The USGS notes concentrator shutdowns and lower ore grades hit US production in 2025.
- Trade policy. Tariffs can pull metal into one market and widen exchange spreads.
- Smelter economics. Refinery capacity growth relative to mine supply shows up in TC/RC terms.
- Demand. Construction, grid spending, vehicles and data centres drive use.
What to watch
- The USGS Mineral Commodity Summaries, published each year, for production and reserves.
- LME and COMEX warehouse inventory reports and the spread between the two contracts.
- Annual TC/RC benchmark talks, usually concluded late in the year.
- Any US decision on tariffs for refined copper imports.
- Natural Resources Canada’s copper facts for Canadian output.
Sources
- USGS, Mineral Commodity Summaries 2026: Copper
- Natural Resources Canada, Copper facts
- London Metal Exchange, LME Copper contract specifications
- White & Case, 50 percent Section 232 tariff on copper imports
- Mining.com, Antofagasta agrees zero copper processing charges for 2026
- Tech Times, White House copper tariff stall (September 10, 2026)
Frequently asked questions
What is copper mostly used for?
Copper carries electricity and heat well and resists corrosion. USGS data citing the Copper Development Association show US copper products go to building construction, 42%, electrical and electronic products, 23%, transportation equipment, 18%, consumer and general products, 10%, and industrial machinery, 7%. Scrap supplied about 30% of US copper supply in 2025.
Which countries mine the most copper?
USGS estimates for 2025 put Chile first at about 5.3 million tonnes, followed by the Democratic Republic of Congo at 3.2 million and Peru at 2.7 million, out of about 23 million tonnes worldwide. China mined about 1.8 million tonnes but refined about 14 million, around 48% of world refinery output. Canada mined about 500,000 tonnes.
How is the price of copper determined?
Copper is priced on the London Metal Exchange, COMEX and the Shanghai Futures Exchange, with the LME serving as the main global reference. The LME trades 25-tonne lots of Grade A cathode in US dollars per tonne. Miners selling concentrate receive the metal price minus treatment and refining charges, which were set at zero for the 2026 benchmark.
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