BHP Billiton says China’s global infrastructure initiative “Belt & Road” will have a bigger impact on copper demand than first predicted.
Often described as a 21st century “silk road, it is made up of a “belt” of overland corridors and a maritime “road” of shipping lanes.
In the latest “episode” of BHP’s blog on the Belt and Road Initiative-BRI-the company said it could potentially boost copper use by 1.6 million tonnes or roughly 7% of yearly demand.
BRI covers a network of construction projects now covers 115 partners across Eurasia, parts of Africa, Latin American and Oceania-or over half the world’s population.
BHP says BRI represents one third of the global economy and would drive spending of up to $1.3 trillion over the decade to 2023.
“Increasing the international competitiveness of manufacturing in these regions may create a major lift in future demand from copper intensive sectors, such as automobiles, consumer durables and machinery,” BHP said in its latest blog.