Circular economy will play an "increasing role" in copper supply

Kunal Singh, head of global business at Glencore Recycling, said at a conference last week that by 2050, the demand for copper is expected to double to an average of 60 million tons per year. This is mainly due to low-carbon energy and technology, electrification and Driven by the transformation of electric vehicles (EVs).

Due to the lack or delay of investment in new mines, mining projects are currently at the low point of the super cycle. From a supply perspective, Singh questioned whether the mining industry could keep up with demand.

Because of this, he believes that copper recovery and circular economy will play an increasing role in the next few years, because circular economy may be able to fill about 40% of the supply gap left by the mining industry.

At the same time, from an emissions perspective, he emphasized the efforts to achieve net zero emissions commitments and targets by 2050, adding that although there is a large amount of research available, "relying solely on resource efficiency and low-carbon energy cannot be used. Achieve net zero emissions by 2050".

To a large extent, the success of the promise will include a circular economy, in which copper will play a big role in meeting the demand for copper while meeting the promise.

When talking about the growth of copper demand, Aurubis CEO Roland Harings agreed that "part of it must be provided by the main source (mine)" and that the circular economy "will use the huge copper resources that will be used in the world's infrastructure (for example)."

He added that the benefit to copper is that this material does not lose its original properties and can be modified to the best existing or required properties.

"From a circular perspective, I am much more optimistic. There will be materials available and we will find ways to meet the needs of society."

However, Singh regrets that the recycling of materials like copper is still often referred to as "scrap" or "waste", which prevents potential recyclers and investors from exploring the circular economy industry.

He suggested that calling these materials "post-consumer resource materials" would help encourage more investment, although regulatory frameworks and policies will continue to play an important role.

"We need to stop calling it waste or waste and start calling it post-consumer resources," he asserted, noting that partnerships and collaborations between the government, regulators, and policy markets will require "appropriate policy frameworks to help Transport these materials to recycling facilities" so that these materials can be recycled and get there faster and cheaper without being overburdened by paperwork or red tape.

COVID-19

Although copper experienced a short-term supply disruption at the beginning of the Covid-19 pandemic last year, Spain’s La Farga CEO Inka Guixa stated that the recovery of copper was “quite parallel to the reduction in demand”, meaning that the recovery of copper was in line with the demand experienced. cycle.

She added that the decrease in copper demand mainly occurred in the second quarter, with a recovery at the end of May.

However, from a more global perspective, Singh believes that the pandemic “inspires the vitality of businesses and industries” because once the industry is designated as a basic service and continued operation in most countries, it will soon Recover from the initial uncertainty.

Singh said that after clarifying the regulation and measures of the industry, a good flow has been seen internationally. For example, Glencore Recycling has achieved its goals and increased its inventory during the pandemic.