Filenews 31 January 2021 - by Dimitris Konstantinidis
In an earlier study we had presented, among other things, the origin of the name of copper: Aes Cypriot in Latin, which means "From Cyprus". Cuprum or copper in English, our "own" copper. Copper has been one of the most used metals on the planet for millennia. This is because of its properties, because it is a very good conductor of electricity and heat and at the same time versatile material, which is why its cables and sheets can easily be used in hundreds of applications.
Literally copper is ubiquitous. Its percentage global consumption in key sectors of the economy in 2019 was as follows:
-Equipment 31%
-Constructions 28%
-Infrastructure 16%
-Transport 13% and
-Industrial applications 12%
This metal is necessary for the construction of four "tools" of our daily lives. In fact, for some years now another important role has begun to play, the '20' of the green economy. According to industry estimates, electric vehicles need about four times more copper than those with combustion engines, while solar panels and wind farms require up to five times more copper than they need to produce energy from fossil fuels. Its use in the production of energy from solar, hydroelectric, thermal and wind sources around the world will help to substantially reduce CO2 emissions and thus address climate change. Indeed, as renewable energy sources (RES) steadily increase their rates in global electricity production, copper will play an increasingly important role in reducing greenhouse gases.
More specifically:
1. The production of one megawatt (MW) of solar energy requires 5,5 tonnes of copper.
2. Onshore wind farms need about 3.5 to. copper per MW, while an offshore wind power plant of 9.5 per. per MW. In other words, wiring offshore wind farms requires much more copper.
3. In addition, the production of electric vehicles will have a significant impact on copper demand, as it is an integral component of their technology and support infrastructure. Copper is used in all parts of electric vehicles, including the engine and battery. Also, their charging stations contain copper because of its high electrical conductivity.
The car with an internal combustion engine contains, on average, 22 kg of copper, the hybrid electric vehicle 40 kg, while the electric battery car needs more than 85 kg.
4. Pumping pumping wedges in hydroelectric infrastructure shall require 0,3-4 tonnes of copper per MW.
Another great advantage of copper is that it belongs to renewable metals. It is, in other words, one of the few materials that can be recycled 100% over and over again without losing their properties. Its role in the circular economy will therefore be equally important. It is typical that 50% of the European Union's copper needs come from recycling.
With each energy transition comes a new need for mineral raw materials. From the above it becomes clear that mining is the key to the development of RES, as green technology is heavily dependent on certain metals and minerals.
Among the strategic metals without which it would not be possible to transition to green growth and economy are nickel, lithium, cobalt, graphite, aluminium, vanadio and some rare earths. However, all metal technologists agree that practically no green energy production infrastructure could function without copper. So fairly copper can be named as the leader of the green revolution.
What do investors say? From the above, we are not surprised that the price of copper has reached the highest levels in seven years - $8,000/tonne - showing, in recent months, an increase of more than 70% from the lows of March 2020. Nor is it at all surprising that stock market analysts claim that with projected market demand and its relative inadequacy, it will reach in 2021 or early 2022 the price of $10,000/a .
More specifically, experts from the Trafigura Group, one of the world's largest copper producers and traders, predict that increasing demand for RES infrastructure and electric vehicles will help increase global copper consumption from 23.4 million in 2020 to 33.3 million tonnes in 2020. Tonnes in 2030. Many countries, including Japan and South Korea, have committed this year to achieving carbon neutrality by 2050, while the European Union has recently announced its plans to reduce CO2 emissions by at least 55% in the next 10 years.
China is certainly attracting the most interest, having pledged to triple the country's wind and solar power over the next decade to 2019 levels, a move that will give a significant boost to copper demand. Trafigura predicts an increase of almost 800,000 tonnes in Chinese copper demand in 2021 alone. Goldman Sachs analysts also estimate that the shortfall in copper supply by 2030 will be more than 5.6 million tonnes.
It should be stressed, however, that production of certain other metals, such as lithium, cobalt and graphite, will need to increase by 500% by 2050 in order to meet demand for clean energy technologies.
With regard to the USA, it is believed that they can generate 50% of their electricity from RES by 2030. Of course, more executive measures will be needed from the new government of Joe Biden, who nevertheless seems determined to return to the Paris Agreement and promote the investment and policy changes needed to ensure that by 2030 the US network is half fed by RES. This is a more realistic scenario than the new President's very big target for a zero-carbon energy sector in the US in 2035.
The mining sector is constantly grappling with its image as a "dirty" industry. Mines can be dangerous for those who work in them and cause pollution to the environment, even through greenhouse gas emissions. It will take a big change in public perception to transform this image. The mining industry is clearly taking steps to improve its environmental portrait, but this will be a long process of changing public opinion.
Mining companies should continue to improve their environmental and social credentials. The environmental strategy of each mining company must deal with improving the efficiency of the energy used in the field of exploitation and verticalization of its products, as well as with the expansion of metal waste recycling, increased investment in greenhouse gas storage technologies and of course with the transition to cleaner energy sources, including hydrogen in heavy trucks used in mining. Obviously also for the production and use of renewable energy, where possible.
It is also clear that the mining and RES industries should have a symbiotic relationship. The RES industry needs the mining industry to secure the metals and minerals it needs in order to implement its path towards a clean, zero-carbon world. Similarly, the mining industry will increasingly rely on RES to support its development and get rid of the image of the dirty player it currently has, in order to maintain and strengthen its funding support and acceptance of society.
