South America’s Left Turn Is Bullish Copper, Top Miner Says

A hard turn to the left in South American politics may come with a silver lining for mining companies in the form of higher prices, according to Freeport-McMoRan Inc. Chief Executive Officer Richard Adkerson.

Policy uncertainty in Peru and Chile, which account for about 40% of global copper production, is supportive of future prices as producers balk on pulling the trigger on investments, he told analysts on a call Thursday. The shifting political winds are part of the challenges that mining companies face in meeting growing demand as the world transitions away from fossil fuels.