Jose Ignacio Merino’s Post

Copper has a key role to play in a more sustainable future. This interesting article provides our BHP outlook for demand and key challenges on supply side. Worth to take a read.

One of the great things about working in M&A across all sectors is the variety of insight it gives you into what is happening in the world at different levels of industry. One current M&A theme is future copper supplies, and reducing interest in platinum group metals. The reducing value of platinum group metal miners (Ruthenium, Rhodium, Palladium, Osmium, Iuridium and Platinum: mainly used in catalytic converters to reduce pollutants from petrol and diesel engines), and increased interest in copper is all driven by the expected energy transition over the coming years: who will need platinum group metals when internal combustion engines are no longer manufactured? Conversely, copper is the metal of electronic systems - as we electrify everything, demand must surely increase. The lead time for exploration is long and expensive so many miners believe buying existing sites is the best bet, enabling them to capitalise on soaring prices in coming years. Here is an interesting insight into copper futures if you are interested in such things.

Some interesting learnings of the day about Copper! [1] The global demand for copper at any point in time indicates the economic well being of the countries [2] Global green energy transition is all set to double the copper demand growth by 2030 [3] The copper production sector saw an underinvestment for the last 10 years and now there aren't enough copper mines to fulfil the demand in the coming decade [4] Copper is mostly used in the following industries: - Building & construction ~ 43% - Machinery ~ 7% - Consumer products ~ 10% - Transportation ~ 20% - Electronics ~ 20% [5] A standard size EV requires 2.5x more copper than the same sized gasoline car [6] China accounts for more than 50% of the global demand for copper [7]There are enough reserves & recycled copper available but not new production to meet the near term demand [8]The prices of copper may touch $15,000 a ton by 2025, resulting in the raw material prices for all the companies that use it as a raw material [9]The additional capacity required is more than the previous 100 years capacity [10] Nevertheless, there's a copper bull run underway and there are some global investment opportunities to invest in this theme! __ What do you think of this? Tell us below!

Global Copper demand is projected to surge by 70% between 2021 and 2050. See where this growth is expected to come from: https://bit.ly/4fFVscE #CELL #EVKRF #Copper #CriticalMinerals #EV #BatteryTech #Sustainability

The global copper market is experiencing a significant surge, with prices predicted to reach $12,000 per tonne by the end of 2024 and potentially hitting $15,000 by 2025. This sharp increase is driven by escalating demand for copper in electrification and renewable energy projects, coupled with persistent supply deficits. Hedge fund manager Pierre Andurand is reported in the Financial Times (https://shorturl.at/8jLWh) forecasting that the price could reach $40,000 per tonne in the next few years.    The main factors contributing to this rise include: - Supply Threat Cuts: Disruptions from labour strikes and operational issues in major producing regions have exacerbated supply shortages, heightening market volatility. - #Policy Decisions: Ambitious economic growth targets set at China's National People’s Congress are expected to fuel further demand for copper, particularly for infrastructure and #GreenTechnologies. - Growing Demand in India: India’s infrastructural and industrialization projects under Prime Minister Narendra Modi are also driving increased copper consumption, adding pressure to the already strained supply chain.   Amid this volatile landscape, it's crucial for industries to adopt efficient and sustainable solutions. One such innovation is #Enertechnos’ Capacitive Transfer System (CTS) cable (https://shorturl.at/mmoTA), which uses 20% less copper compared to traditional cables. By integrating CTS cables, we can mitigate the impact of rising copper prices while promoting resource efficiency and #sustainability.   Benefits of CTS Cable: - Cost Efficiency: Reduces the amount of copper needed, lowering material costs. - Sustainability: Less copper usage means reduced environmental impact. - Future-Proofing: Aligns with the growing demand for efficient and eco-friendly technologies.   The importance of adopting such technologies cannot be overstated, especially given the critical role copper plays in the transition to a clean energy future. Without sufficient copper supplies, the electrification and sustainability goals worldwide could face significant challenges. Furthermore, the increase in demand for copper means that to meet net zero targets, we will need as much copper in the next three decades as in the entire history of mankind, according to Joachim Berlach of Earth Resource Investments in Zurich.    As we navigate through these tumultuous times, adopting technologies like CTS cables not only makes economic sense but also supports our collective journey towards a #NetZero future.   Let's embrace innovation to stay ahead of the curve and contribute to a more sustainable world. 🌍💡   #Copper #Innovation #TechTrends #RenewableEnergy #CTS #Efficiency #GreenTech

One of the downsides of the junior sector's focus on recycling the same projects is that major copper discoveries have become increasingly rare. This trend may be attributed to the industry's reluctance to explore in green fields environments. As a result, the industry is struggling to replenish reserves and relying on increased copper prices to lower economic cut-off grades, which could have long-term implications for the copper market. Synergy Resource Capital S&P Global Market Intelligence

10-Watt Bulb's Emission: A Random Post The humble 10-watt bulb — how much of a footprint does it leave behind in its lifetime? Let's break it down. Over a year, a 10-watt LED bulb – assuming it's on for 5 hours a day – will consume about 18.25 kWh of electricity. Over its 5-year lifespan, that adds up to about 77.5 kg of CO2 emissions in total. Not much for a single bulb, but every little bit counts. Now, let’s talk minerals. LEDs are made of rare earth metals like indium and gallium, plus a dash of phosphors, and materials like copper and aluminium. Mining these materials requires energy and comes with its own environmental cost. But here’s the silver lining: LED bulbs are far more energy-efficient and longer-lasting than their incandescent counterparts. So while there is some environmental impact, their low energy consumption and extended lifespan make them a step in the right direction toward a more sustainable future. Mindful choices today help light the path for tomorrow!

For a long time, the unsung hero of battery components has been the anode, and specifically graphite. Cathode material has historically been the capacity limitor, and a lot of news focuses on supplies of metals like Nickel and Lithium rather than carbon products. That changed in late 2023 when China restricted exports of graphite. Let’s dive in. https://lnkd.in/ePKaV8aT

Chart: Global Copper Demand (2021-2050P) https://ift.tt/CbAzYe1 Published 52 mins ago on October 4, 2024 By Julia Wendling Article & Editing Selin Oğuz Graphics & Design Alejandra Dander Twitter Facebook LinkedIn Reddit Pinterest Email The following content is sponsored by BHP Chart: Global Copper Demand (2021-2050P) Demand for copper, a vital metal for economic growth and the energy transition, is set to expand over the coming decades. In fact, global resources company BHP estimates that the red metal’s demand will surge by approximately 70% between 2021 and 2050. In this graphic, we partnered with BHP to visualize the projected sources of copper demand through to 2050. Key Sources of Copper Demand Copper has diverse and widespread applications across many sectors. This mean that, as the global economy grows, demand for the metal tends to follow. As living standards rise globally, demand is expected to follow suit for products like washing machines and smartphones. Developing economies, which have nearly five times the population of high-income countries, will increasingly strive to achieve the same high standard of living found in developed nations. This transition will naturally lead to a greater need for the red metal. Another key source of demand is from the energy transition. Shifting the global economy away from fossil fuels towards electricity from renewable sources should lead to greater demand for copper. In fact, in a deeply decarbonizing world BHP envisages cumulative primary copper demand over the next 30 years to be around double the amount consumed in the previous 30. Finally, the world’s rapid adoption of AI is leading to a surge in demand for data centers. Copper’s superior electrical and thermal conductivity make it an essential material for computer circuitry, power delivery, cooling, and data transfer. The Impact of Substitution and Thrifting While copper’s growth story is very promising, substitution and thrifting is expected to have a moderating effect on future demand. These trends of substitution and thrifting have been with the metal for decades. While it means that a rapid reduction in copper demand is unlikely, there will likely be steady losses over time. The Future of the Red Metal Copper will play an integral role in the economy of tomorrow. As a metal with widespread applications that is essential both in technological advancements and the energy transition, consumption is set to expand. Despite some relief provided by substitution and thrifting, copper suppliers could have their work cut out for them. BHP is one of the world’s leading copper producers. Read more insights in their latest commodity outlook deep dive article ‘How copper will shape our future’. Related Topics: #copper #economic growth #energy transition #bhp #outlook Click for Comments You may also like Mining4 days ago Visualizing the Decline of Copper Usage in EVs The total copper per vehicle...

The burgeoning demand for green technologies is poised to account for nearly half of the incremental demand for #copper throughout the remainder of this decade. This surge is integral to propelling copper into the midst of a supercycle, underscoring the metal's pivotal role in the transition to #sustainable #energy solutions. The shift towards green energy, electric vehicles, and other eco-friendly technologies necessitates a substantial increase in copper usage, given its critical properties such as high conductivity and durability. This trend not only highlights copper's indispensable role in achieving global sustainability goals but also suggests a profound transformation in the metal's market dynamics. As countries and industries ramp up their efforts to reduce carbon footprints, the demand for copper is expected to rise sharply, thereby fuelling a supercycle characterized by prolonged periods of above-trend price increases. This scenario presents both challenges and opportunities in terms of mining, recycling, and sustainable resource management, as the world seeks to balance the imperatives of environmental stewardship with the growing demand for this essential metal.