How to invest in Latin America’s metal reserves – the key to reaching net zero

Latin America’s base metals are crucial to stabilising global greenhouse-gas emissions, says James McKeigue. Here, he picks the best ways to invest.

Llamas in the Andes
Ecuador’s rugged terrain is rich in unexplored copper reserves
(Image credit: © Patricio Hidalgo / Alamy)

The US recession is bad news for investors. But at least it lets them retell an old joke. Dr Copper’s diagnosis was accurate once again: the price of “the only metal with a PhD in Economics” dropped before the current economic downturn.

Yet while copper is an excellent predictor of GDP movements owing to its widespread use, it is rubbish at spotting energy transitions. Over the next 30 years governments, investors and companies will spend trillions electrifying the global economy. The goal is to fight climate change by replacing carbon-emitting fossil fuels with renewable energy. The “great electrification” will require huge amounts of copper for the generation, transmission and consumption of this clean power.

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.