Copper industry warns of looming supply gap without more mines

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The world’s appetite for copper to build most electronic devices will exceed supply over the next decade and imperil climate targets unless dozens of new mines are built, executives and analysts said this week at a key industry conference. | Reuters

“There is no way for the world to meet the terms of the Paris climate agreement if we don’t have an increase in the supply of copper and other metals,” Joshua Meyer of mining equipment maker FLSmidth, referring to the climate accord that aims to limit greenhouse gas emissions by keeping the global temperature rise “well below” 2.0 degrees Celsius this century.

Much of the new demand is expected to come from electric vehicles, which are built with far more copper than internal combustion engines. But without enough copper, EV manufacturers could use less than expected or even turn to aluminum, analysts warned. “Demand is there. What I think potentially impacts it, is lack of supply,” said Rag Udd of BHP Group Ltd, which operates the world’s largest copper mine in the Atacama Desert in Chile. “In the absence of supply, we will see substitution.”

And while copper recycling rates are rising, industry executives said a truly “circular economy” where it is almost entirely recycled is likely not imminent. Aurubis AG says nearly half of its copper cathodes are made with recycled material but that it will take decades to reach 100 percent.

 

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