Robert Friedland, Founder and Executive Co-Chairman of Ivanhoe Mines, warns that a prolonged closure of the Strait of Hormuz would have “profound” effects on global supply chains, driving up sulfur and sulfuric acid prices and causing shortages that constrain copper producers.
Approximately 20% of global copper supply relies on sulfuric acid for leaching oxide ores. Friedland notes that with about 50% of global seaborne sulfur supply cut off, “the sulfur and sulfuric acid markets are becoming extremely tight.” He stated in Ivanhoe’s Q1 production report: “If the closure of the Strait of Hormuz persists, we are particularly concerned about the availability of precursor materials needed to continue mining operations. A second derivative impact will be a shortage of the world’s most important industrial chemical – sulfuric acid – leading to a decline in global copper production.”
A Critical Chokepoint
The Strait of Hormuz is a vital chokepoint for sulfur shipments from the Middle East, which typically accounts for over 40% of global exports. Supply disruptions are already reducing sulfur deliveries, impacting copper processing and other metals reliant on acid leaching. According to Bloomberg, certain nations are planning to ban sulfuric acid exports, including byproduct acid from copper and zinc smelting. Data from Traubenbach Associates (cited by Red Cloud Securities) indicates one country planning such a ban currently exports ~2.7 million tonnes of sulfuric acid annually. In 2024, phosphate fertilizer producers consumed 54% of sulfuric acid, chemicals manufacturing 12%, and metal processing/mining 10%. Copper smelting dominates the metal/mining sector, consuming 62 million tonnes out of 89 million tonnes.
Rising Prices
On March 31, Ivanhoe reported that spot sulfuric acid prices had exceeded US$500/tonne due to supply tightness. The company stated that a continued closure could drive prices even higher. Ivanhoe’s Kamoa-Kakula copper complex in the DRC – home to Africa’s largest copper smelter – plays an increasingly strategic role. The operation produces its own byproduct sulfuric acid, reducing dependence on disrupted imports, and sells acid to oxide copper mines in the DRC’s Copperbelt. In Q1, the smelter produced 117,900 tonnes of high-strength sulfuric acid. Friedland noted: *”Kamoa-Kakula is ideally positioned as a producer and seller of sulfuric acid, rather than a consumer. Our industrial process does not require sulfuric acid to produce 99.7% purity copper anodes.”* RBC Capital Markets analyst Sam Crittenden highlighted in a report that sulfuric acid sales revenue represents a strategic advantage given global supply chain disruptions from the Strait of Hormuz closure.
Post time: Apr-20-2026
