Leaching for Leverage: How Coda Minerals’ Chloride Process Could Transform Copper Investments

Copper, the lifeblood of modern infrastructure and green technologies, is facing a supply crunch as demand surges. As the world transitions to electric vehicles, renewable energy systems, and advanced electronics, the need for this conductive metal is projected to skyrocket. This creates both challenges and opportunities for copper miners and investors alike. Coda Minerals (ASX: COD) is positioning itself to capitalize on this demand with a game-changing approach to copper extraction: chloride leaching. This innovative method promises to unlock previously uneconomical copper resources, potentially transforming the landscape of copper investments.

The Looming Copper Crisis: A Statistical Snapshot

The International Energy Agency estimates that clean energy technologies could more than double copper demand by 2040 compared to 2023 levels. This surge is driven by the metal’s crucial role in electric vehicle batteries, charging infrastructure, and renewable energy systems like solar panels and wind turbines. Simultaneously, existing copper mines are facing declining ore grades and increased extraction costs, exacerbating the supply-demand imbalance. This imbalance has already started to impact copper prices, with prices appreciating from $8,000 per ton to over $10,000 per ton.

Traditional Copper Extraction: Limitations and Challenges

Traditional methods of copper extraction, such as flotation followed by smelting, have several limitations:

High energy consumption: Smelting is an energy-intensive process, contributing significantly to carbon emissions.
Environmental impact: Traditional methods can generate substantial waste and pollutants, raising environmental concerns.
Limited recovery: Flotation processes often fail to recover copper from low-grade or complex ores, leaving valuable resources untapped.

These limitations have spurred the search for alternative extraction technologies that are more efficient, environmentally friendly, and capable of processing a wider range of ore types.

Chloride Leaching: A Paradigm Shift in Copper Extraction

Chloride leaching is emerging as a promising alternative to traditional methods. This hydrometallurgical process uses chloride solutions to dissolve copper from ore, offering several advantages:

Higher recovery rates: Chloride leaching can achieve significantly higher copper recovery rates compared to flotation, particularly for complex or low-grade ores.
Lower energy consumption: The process operates at lower temperatures and pressures than smelting, reducing energy consumption and carbon emissions.
Reduced environmental impact: Chloride leaching can minimize waste generation and pollutant emissions, offering a more sustainable approach to copper extraction.

Coda Minerals’ Chloride Process: A Deep Dive

Coda Minerals is pioneering the application of chloride leaching at its Elizabeth Creek Copper-Silver Project in South Australia. The company’s innovative approach involves a whole-ore leach process, where the entire ore body is treated with a chloride solution, rather than relying on traditional flotation concentration methods.

Here’s how Coda Minerals’ chloride leaching process works:

Ore Preparation: The ore is crushed and ground to a coarser size (p80 75μm) compared to previous plans (p80 32μm).
Chloride Leaching: The ground ore is then subjected to a four-hour chloride leach under controlled oxidative conditions.
Solution Separation: The solution containing dissolved copper and silver is separated from the solid residue.
Downstream Processing: Standard solvent extraction and electrowinning (SX/EW) are used to produce copper cathodes, while the Merrill-Crowe process is employed for silver doré production.

Key Advantages of Coda Minerals’ Process:

Increased Metal Recoveries: Copper recoveries have increased to 94.8% (up from 82.8%), and silver recoveries have risen to 98.2% (up from 82%).
Simplified Flowsheet: The process eliminates the need for complex flotation circuits and oxygen plants, reducing capital expenditure.
Reduced CAPEX: Total capital expenditure has decreased by $74 million.
Faster Payback: The CAPEX payback period has been reduced from 4.0 years to 3.25 years.
Near-Neutral pH: Coda’s process operates at a higher, near-neutral pH, unlike traditional acid leaching, potentially reducing environmental impact.

Economic Implications: A Boost for Project Value

The improved metal recoveries and simplified flowsheet have significantly enhanced the economics of the Elizabeth Creek project.

Increased Production: Total copper production over the life-of-mine is now projected at 454,000 tonnes (up from 384,000 tonnes), and total silver production has increased to 20 million ounces (up from 16 million ounces).
Higher NPV and IRR: The pre-tax NPV(7) of the project is approximately $1.29 billion (up from $1.2 billion in previous studies), with an Internal Rate of Return (IRR) of 39% (up from 35%). At current spot prices, the pre-tax NPV(7) increases to approximately $1.81 billion, and the pre-tax IRR rises to 48%.

Investment Opportunities: Coda Minerals and the Copper Market

Coda Minerals’ chloride leaching breakthrough presents a compelling investment opportunity in the copper market. As the company advances its Elizabeth Creek project towards production, investors can potentially benefit from:

Increased Share Value: Successful implementation of the chloride leaching process could drive up Coda Minerals’ share price as the project’s value is realized. As of September 22, 2025, Coda Minerals has a market cap or net worth of 33.74 million. Its market cap has increased by 92.50% in one year.
Exposure to Rising Copper Prices: As a copper producer, Coda Minerals is well-positioned to benefit from the expected increase in copper prices due to the supply-demand imbalance.
Strategic Partnerships: The company may attract joint venture partners or offtake agreements, further enhancing its financial position.

Risks and Considerations

While chloride leaching offers significant advantages, it’s essential to acknowledge potential risks:

Environmental Concerns: While Coda’s near-neutral pH approach mitigates some risks, chloride leaching can still pose environmental challenges if not managed properly. Chloride accumulation in soil and water can negatively impact plant growth and aquatic ecosystems.
Technical Challenges: Scaling up the chloride leaching process from pilot to commercial scale may present unforeseen technical hurdles.
Market Volatility: Copper prices are subject to market fluctuations, which can impact the profitability of copper mining projects.

The Future of Copper Extraction: A Sustainable Path Forward

Coda Minerals’ chloride leaching process represents a significant step towards a more sustainable and efficient future for copper extraction. By unlocking previously uneconomical resources and reducing the environmental impact of mining, this innovative technology has the potential to transform the copper industry and create new opportunities for investors. As the world embraces a greener future, companies like Coda Minerals, that prioritize innovation and sustainability, are likely to play a crucial role in meeting the growing demand for copper.

Disclaimer

This blog post is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.