The CRU Group just told an international seminar that copper supply is facing a nearly 6M tonne shortfall. Filling it, they say, will be tough.
Erik Heimlich, principal copper analyst at CRU Group, told the June Navigating the Green Revolution in Base Metals seminar, the world will see the supply gap opening up from the mid-2020s to historically high levels.
The trouble, they also say, is that new projects face major challenges from growing Environmental, Social, and Governance (ESG) standards, as well as tougher community demands on licence to operate approvals.
Even projects that look probable now can face long delays in coming to fruition or may even get put on hold indefinitely.
Companies globally are facing all sorts of legal problems with new mines, from environmental objections about location to issues about processing, waste, and water or energy use.
Higher environmental rules can mean that companies have to lower mine footprints so less ore can be extracted than using say traditional open pit methods. Alternative energy or water use options like desalination plants or battery storage can also add much higher infrastructure costs to projects as well.
We need to solve these problems together because the world also needs copper to help fight climate change. That’s not going to change.
We’re doing our bit here with our Zero Emissions copper mine project, wth the first report on Water due out soon. Water is a great start of course, but as the CRU has made it clear its just a drop in the ocean.
Cheers, John Fennell
