A recent conference in London has heard that copper will play an increasingly important role in creating a greener and more sustainable world.
Those in the copper sector have been doing it tough for quite a while. The metal was fetching more than USD $4.50 a pound in 2011, but in October this year its value dipped below $2.50 at one point.
It seems the tough times aren’t over yet. In August, Goldman Sachs forecast the price may slump to $US4000 a tonne over 12 months as supply picks up and demand growth softens.
Globally, the copper industry will produce 22.5 million tonnes of the metal this year, an increase of 3.6 percent over last year.
But perhaps soft demand may not be a long term situation.
Jean-Sebastien Jacques, chief executive of the International Copper Association; delivered a speech on copper’s future at a technical workshop in London last week – and was quite bullish on the metal’s future prospects.
He stated renewable energy resources require four to 12-times as much copper as conventional fossil fuel-based power generation. Mr. Jacques said one megawatt of solar photovoltaics uses about four tonnes of copper.
Based on International Energy Agency (IEA) projections for PV capacity out to 2030 of between 1,750 and 2,500 gigawatts; that translates to between seven and ten million tonnes of copper required to meet demand associated with solar power systems alone.
It should be kept in mind too that the IEA has a history of underestimating the rise of solar. The latest revised forecast from the IEA, released just a week ago, states 30,000 solar panels will be installed every hour around the world over the next 5 years.
Added to that demand will be the copper used in the manufacture of electric vehicles (EVs).
“With 90 or more kilos of copper used in a full electric vehicle – three to four times more copper than used in a gas-powered car – it is clear to see the positive impact the use of electric vehicles could have on
copper demand,” said Mr. Jacques.
Bloomberg New Energy Finance forecasts that by 2040, more than 40 million fully electric vehicles will be sold each year.
All that copper means a lot of mining; which will send shivers down the spine of many environmentally-conscious folks. However, one of the advantages of copper compared to coal and crude oil is that it is recyclable.
“It can be used again and again without any loss of its properties, including its high level of conductivity,” he stated. “One-third of copper demand today is met from recycled metal.”
Mr. Jacques acknowledged the copper industry needs to do a better job of securing social license, calling it “a make or break” situation with regard to its future activities.
“We must demonstrate how we will share the benefits created by our operations, and how we will partner with local communities and host governments. We also must explain what we are doing to ensure the long-term sustainability of the planet and its seven billion people,” he said.
The full text of the speech can be viewed here (PDF).
As a side note – more copper may mean greater availability of graphite, from which graphene can be created – another material prized in the renewable energy industry for use in next generation solar power and battery storage products. Graphite is one of copper mining’s by-products.
Top Right Image credit: Jonathan Zander (Digon3)
