Copper is groaning under the weight of expectation and demand is expected to far outstrip supply, according to IMDEX chief geoscientist Dr Dave Lawie.
Dr Copper, as the mining industry calls it, is typically a barometer of industrial growth.
But the challenge the world faces is the lack of new mines under development to make up the supply shortfall in order to meet decarbonisation targets, the EV market, power transmission networks and other industrial uses.
“The issue that remains widely unappreciated outside the mining and associated sectors is the extent to which big copper resources are hard to find, and difficult to mine when they are discovered – and the long lag between exploration and production,” Dr Lawie said.
“We have been looking for sizeable deposits for decades.
“We are consuming what we have found faster than ever, and we have not altered exploration methods or increased capital expenditure in response to the looming supply shortfall.”
Recent reports suggest a reduction in copper production amongst major miners to 2026.
Wood MacKenzie estimates a US$23b investment a year is required over 30 years to deliver new copper projects to reach zero-carbon targets, while S&P Platts reports that climate goals will be “short-circuited and remain out of reach” if copper shortfalls follow projected trends.
“Grade quality is decreasing, the ratio of waste to ore is increasing, and deposits if and when they are discovered are more likely to be deeper and in remote locations, presenting added costs around the provision of infrastructure to and at the mine,” Dr Lawie said.
IMDEX is supporting Copper for Tomorrow, a dedicated cooperative research centre that prioritises solving challenges across the copper value chain.
“The aim is to solve the copper paradox – how to produce the copper needed for a low carbon society while dealing with lower grade ores, without using more energy and water, and producing more waste,” Dr Lawie said.
New research and technology being developed through the centre include improving copper mining and production, creating processes that move copper production towards zero emissions, waste and footprint, as well as incorporating the evolving Environmental, Social and Governance (ESG) factors into business processes.
“IMDEX is invested in finding answers to modern mining challenges,” Dr Lawie said.
“Our commodity agnostic geoscience-lead solutions seek to provide answers that unravel complex ore bodies, allowing for more informed decisions to be made earlier.”
More information can be found at www.copperfortomorrow.com.au.
