Research and consultancy group Wood Makenzie (WoodMac) says the global energy transition presents an almost unattainable mine supply challenge, with significant investment and price incentives required.
In its latest report, titled ‘Red metal, green demand: copper’s critical role in achieving net zero’, WoodMac finds that 9.7-million tonnes of new copper supply will be needed over ten years, which is equivalent to almost a third of current refined consumption, if the industry is to meet the Paris Agreement target of containing global warming to 1.5 ˚C above preindustrial levels.
WoodMac copper markets research director Nick Pickens says copper’s critical role in the energy transition is undisputed. “It is the significant pull on the metal’s existing and potential suppliers, and the investment required, that needs urgent attention,” he adds.
To successfully meet zero-carbon targets, the mining industry needs to deliver new projects at a frequency and consistency never previously accomplished.