A 25% Copper Shortfall Is Coming. Four South American Nations Are Positioning for It

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1. Eloro Resources Ltd. is a billboard sponsor of Streetwise Reports. The company pays a monthly sponsorship fee of US$3,000–US$6,000 for banner advertising and an enhanced company profile page. Streetwise Reports’ editorial content is fully independent and is not influenced by sponsorship. 
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Eloro Resources Ltd. Kobrea Exploration, and Fitzroy Minerals.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

South American governments are taking steps to turn the region's vast mineral resources into a more coordinated critical minerals hub.

According to a September 4 report by Mining.com, a joint declaration signed by Chile, Argentina, Bolivia, and Peru on August 28 is aimed at encouraging responsible mining investment, technical cooperation, and greater integration of mineral supply chains. Mining authorities from the four countries reached an agreement during the first ministerial meeting on strategic minerals in Santiago, Chile.

The initiative comes as governments and companies worldwide seek additional sources of minerals used in electrification, artificial intelligence, technology, and defense. According to the article, the four countries want to position South America as a reliable strategic supplier while improving cooperation on geology, regulation, suppliers, workforce skills, and financing.

Mariano Machado, Americas principal analyst at risk intelligence company Verisk Maplecroft, said greater coordination could make the participating countries a more coherent destination for mining investment, though its effectiveness would depend on governments maintaining that cooperation.

Critical Minerals Demand Puts Focus on Latin America

The push comes against a backdrop of concerns about future supplies of several critical minerals. Mining.com cited International Energy Agency projections showing that, based on the current project pipeline, global copper supply could fall 25% short of demand by 2035. New copper mines typically take more than 15 years to reach production.

Lithium development faces its own challenges, including limited greenfield exploration spending and increasing discovery costs.

Latin America's existing mineral endowment gives the region an important position in addressing those potential shortages. Citing a World Economic Forum report produced with McKinsey & Co., the article noted that the region contains significant reserves of copper, lithium, nickel, graphite, manganese, and rare earth elements.

Argentina and Chile together hold about 40% of global lithium reserves, while Chile and Peru account for roughly 30% of global copper reserves. Brazil holds approximately one-quarter of the world's graphite reserves and about 15% of its rare earth reserves, according to the report.

Mining.com also noted that Western efforts to diversify mineral supply chains away from China could increase investor interest in Latin American projects.

Chile and Argentina are already working to reduce barriers affecting mineral deposits that cross their shared border. The countries have cleared operating protocols for major cross-border projects, potentially making those projects easier to permit, develop, and finance under two separate national regulatory systems.

Chilean Mining and Economy Minister Daniel Mas said reviving the countries' mining integration treaty could unlock more than US$20.7 billion in investment and eventually add 540,000 metric tons of copper production annually.

The article cautioned, however, that communities, unions, and provincial governments could seek to ensure that employment, investment, and mining revenue remain on their respective sides of the border.

The broader challenge for South America is not simply increasing mineral extraction but developing processing and manufacturing capacity that allows countries to capture more of the value generated by their resources.

Brazil's recently approved critical minerals framework, which was awaiting presidential sanction, was cited as one example. The initiative includes approximately US$1 billion in tax incentives, a new guarantee fund, and efforts to expand domestic refining and the production of batteries and magnets.

Those incentives are accompanied by increased government oversight. A new council will have authority to screen certain foreign investments and influence involving companies that hold critical and strategic mineral rights, creating a balance between attracting investment and maintaining greater state control.

Verisk Maplecroft's country-risk analysis identified Argentina, Brazil, Chile, and Peru as attractive critical minerals jurisdictions because of their combination of large mineral deposits, comparatively lower resource-nationalism risks, and improving operating environments.

Still, the report concluded that mineral resources alone will not determine whether the region succeeds. Permitting timelines, fiscal stability, consistent government policy, and the ability to attract long-term capital will ultimately determine whether South America can convert its geological advantages into operating mines, processing facilities, and a larger role in global critical minerals supply chains.

South America already possesses many of the minerals the global economy increasingly needs. The next test will be whether regional cooperation and investment reforms can turn that resource base into sustained production.

Against that backdrop, mining and exploration companies operating across South America are advancing projects that could play a role in the region's growing critical minerals sector. Companies with projects in Bolivia, Chile, and Peru are targeting commodities ranging from copper and tin to silver and other strategic metals as governments seek to attract investment and strengthen regional mineral supply chains.

Bolivia: Eloro Resources

Among the companies with exposure to Bolivia is Eloro Resources Ltd. (ELO:TSX; ELRRF:OTCQX; P2QM:FSE), which is advancing its Iska Iska silver-tin polymetallic project in southern Bolivia.

The company has attracted positive third-party analyst coverage following an updated mineral resource estimate for Iska Iska. On April 23, 2026, Red Cloud Securities analyst Ron Stewart reiterated a Buy rating on Eloro with a CA$5.50 price target.

At the time, Eloro closed at CA$2 per share, putting Stewart's target 175% above that price.

Stewart highlighted what he viewed as a substantial valuation gap between Eloro and comparable companies.

According to his analysis, Eloro was trading at an enterprise value of US$0.18 per ounce of silver equivalent, compared with a peer-group average of US$1.93 per ounce. While the project's lower average grade had previously contributed to that discount, Stewart said the updated resource estimate defined a higher-grade core that could support a re-rating.

Cantor Fitzgerald analyst Matthew O'Keefe also maintained a Speculative Buy rating on Eloro in an April 22 report while increasing his price target to CA$5 from CA$4.50.

O'Keefe pointed to the updated resource estimate, including the conversion of a significant portion of the resource from the Inferred to the Indicated category and expansion of the overall mineralized envelope to more than 1 billion tonnes from 670 million tonnes previously. He also highlighted the concentration of the Indicated resource within the project's higher-grade silver core.

¹About 17% of Eloro Resources Ltd. is owned by insiders, approximately 32% by institutions, and around 2% by strategic investor Cartier Silver. The remainder is held by retail investors.

Its market cap is approximately CA$215.41 million with 118.54 million shares issued and outstanding. It trades in a 52-week range of CA$1.01 to CA$3.42.

Chile: Fitzroy Minerals

In Chile, Fitzroy Minerals Inc. (FTZ:TSX.V; FTZFF:OTCQX) is advancing the Buen Retiro copper project, where third-party commentators have highlighted both the project's development path and the company's valuation.

GGM Advisory Inc.'s Michael Ballanger highlighted Fitzroy in a September 8 report, describing the company as his top pick and No. 1 holding.

Ballanger argued that Fitzroy's market valuation had not reflected the progress made at Buen Retiro and pointed to a series of upcoming milestones that he believed could change how the market values the company.

Those milestones included metallurgical results expected in the third quarter of 2026, a mineral resource estimate and preliminary economic assessment targeted for the fourth quarter, final metallurgical work in the first quarter of 2027, and a prefeasibility study anticipated in the second quarter of 2027.

Ballanger estimated that Fitzroy could ultimately warrant a valuation of US$400 million to US$500 million, compared with approximately US$120 million at the time of his report, representing roughly three to four times that valuation.

He also pointed to the Caballos copper-gold-molybdenum project as another potential catalyst, with drilling expected to begin within 30 days of his September 8 report to test deep induced-polarization targets.

Ron Struthers of Struthers Resource Stock Report also maintained a Buy rating on Fitzroy in an August 21 report. Struthers highlighted the strength of the mineralizing system at Buen Retiro and the additional exploration targets being identified as drilling progressed.

While acknowledging that Fitzroy's shares had already risen considerably from his entry price, Struthers said he continued to view the company as a Buy because of the growing deposit and what he described as its "fast track to production" through its relationship with Chilean copper producer Pucobre.

According to Struthers, the arrangement could allow Fitzroy to avoid constructing a standalone processing plant, potentially reducing both the project's capital requirements and its permitting timeline.

¹Fitzroy Minerals Inc. has a market cap of approximately CA$141.66 million, with 330.73 million shares outstanding. The company's 52-week range is CA$0.27 to CA$0.73. Institutions own 1.80% of shares, while strategic investors own 21.84%. Management and insiders own 9.05% of shares.

Peru: Cerro de Pasco Resources

In Peru, Cerro de Pasco Resources Inc. (CDPR:TSXV; CDPMF:OTCQX; N8HP:FSE) is advancing the Quiulacocha tailings project, which seeks to recover metals from material generated by more than a century of mining at Cerro de Pasco.

Chen Lin of the What Is Chen Buying? What Is Chen Selling? newsletter highlighted Cerro de Pasco in a July 30 report, calling its drilling program the "single most exciting drill catalyst" he was aware of at the time.

Lin focused particularly on drilling of the oldest tailings at the historic mining complex, which he said were being tested for the first time with modern drilling.

Lin argued that much of the project's potential hinges on determining the grade of those historic tailings. He estimated that, if grades meet his expectations, the opportunity could potentially generate US$8 billion to US$10 billion in profit, which he equated to approximately CA$20 per share. Those figures represented Lin's estimates and were contingent on the grade ultimately established through drilling.

More recently, Lin pointed to the public auction involving the Quiulacocha tailings as another development to watch. In a commentary on September 11, he said the auction had been delayed until September 25 and noted that it can be followed under "Subasta Pública N° 001-2026-AMSAC."

Lin compared Cerro de Pasco's position to another company he follows and expressed confidence in its prospects in the process.

He argued that the company would not have continued pursuing the auction following the election of Peru's new president unless it had a high degree of confidence in the outcome.

Lin's comments represented his assessment rather than confirmation of the auction result. Cerro de Pasco is participating in the process, and the outcome will depend on the public auction.

¹About 7% of the company is held by insiders and management. About 21% is held by other strategic entities, and about 11% is held by institutions, with the remainder held by retail investors.

Top shareholders include 2176423 Ontario Ltd. with 16.22 percent, Gordaldo Ltd. with 4.99 percent, Steven Zadka with 4.02 percent, and Goulet with 1.55 percent.

The market capitalization is approximately CA$498.20 million with 664.34 million shares outstanding. The stock's 52-week range is CA$0.415 to CA$0.90.

Argentina: Kobrea Exploration

Kobrea Exploration Corp. (KBX:CSE; KBXFF:OTCQB; F3I:FSE) is focused on copper exploration in Mendoza Province through its Western Malargüe Copper Projects.

Kobrea holds the right to earn a 100% interest in seven projects covering approximately 733 square kilometers in the Western Malargüe Mining District.

The district-scale property contains more than 12 identified porphyry copper and copper-gold prospects and is located within the Neogene Porphyry Belt, which extends across the border between Argentina and Chile.

Among the company's principal targets is El Perdido, where previous exploration identified a copper-gold porphyry system. Kobrea completed its initial diamond drilling program there in 2026, drilling 2,358 meters across six holes and confirming a hydrothermal porphyry system containing copper, gold, molybdenum, and silver mineralization.

The company reported that alteration, veining, and sulphide assemblages increased in intensity at depth and that the interpreted core of the system remained untested.

The broader Western Malargüe portfolio also includes the El Destino, Sofi, and Cuprum projects.

All of Kobrea's projects in the district have received approval for mineral exploration activities, including drilling.

Outside Argentina, Kobrea also owns the Upland Copper Project in British Columbia, Canada, but its large land position in Mendoza gives the company direct exposure to the expansion of copper exploration in one of the South American countries participating in the new regional strategic minerals initiative.

¹5.87% of Kobrea is held by management and insiders. The rest is retail.

The company has a market cap of approximately CA$16.26 million, 53.32 million shares outstanding, and a 52-week range of CA$0.175 to CA$0.71.

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