"We really haven't developed the next generation of new mines in terms of finding large-scale projects," said analyst John Hughes at Desjardins Securities. "Without the next wave of proper supply, junior companies with large resources will continue to be targets for the larger mining companies."

As a consequence, senior producers such as First Quantum (FM.TO: Quote) and Freeport-McMoRan (FCX.N: Quote), as well as Vale (VALE5.SA: Quote), BHP Billiton (BLT.L: Quote) and other diversified miners, will line up to buy established production rather than invest in development projects from scratch, analysts say.

"It takes such a long time to find something, then permit it, then build it, then ramp it up," said David Radclyffe, an analyst at BMO Capital Markets. "You're going to miss that leverage to the current price that you can get today."

Rapid urbanization in China, India and other developing nations is one of the main factors pushing demand for copper and other materials used in construction and manufacturing.

According to a Reuters poll of analysts, this trend will result in a copper shortfall of 444,000 tonnes this year. This has prompted the world's top miners to invest billions of dollars in expanding production over the next five years. The fastest way to do that is through acquisitions.

Eoin Treacy's view Copper, with tin, has been a leader among the industrial metals. However, the effect of Libya's political turmoil on the oil price has raised concerns about the sustainability of global growth and put pressure on industrial metal prices. Copper failed to sustain the break above $4.50 and has pulled back into the underlying short-term range. It remains comparatively overextended relative to the 200-day MA which is approaching the psychological $4 area. Provided prices hold above that level, the medium-term upside can continue to be given the benefit of the doubt.

Both Mercator Minerals and Capstone Mining appear to have begun to revert towards their respective 200-day MAs. Baja Mining has lost downward momentum near the upper side of the yearlong range at $1 but needs an upward dynamic to confirm support in this area.