Weekly Metals News Digest – September 16-20
Artificial Intelligence to Exacerbate Copper Shortages
Developments in the artificial intelligence sector are expected to aggravate the looming shortage of copper, a metal crucial for the global transition to cleaner energy sources, according to Vandita Pant, CFO of BHP Group. The growth of data centers and AI technologies, which demand higher energy consumption for computing, could raise global copper demand by an additional 3.4 million tons annually by 2050. Currently, data centers account for less than 1% of global copper demand, but this could rise to 6-7% by 2050.
BHP's forecasts indicate that global copper demand will reach 52.5 million tons per year by 2050, an increase of over 70% compared to 2021, when global consumption stood at 30.4 million tons. Copper is essential in industries and products key to reducing emissions, such as power cables, electric vehicles, and solar power plants. Many analysts foresee a global copper shortage in the medium to long term.
In response, companies are seeking to secure access to copper deposits. Earlier this year, BHP made an unsuccessful attempt to acquire Anglo American. Later, BHP, alongside Lundin Mining, purchased Canada’s Filo Corp., the developer of the Filo del Sol copper deposit, for $3 billion.
China Increases Aluminum Imports
In the first eight months of this year, China’s imports of aluminum (unprocessed, alloyed, and semi-finished products) rose by 51%, reaching nearly 2.6 million tons. In August, imports grew by 1.9% compared to the same month in 2023, totaling 280,000 tons. This surge is attributed to stronger domestic demand for aluminum, driven by improvements in the industrial and construction sectors. Notably, China’s industrial production expanded by 4.5% in August.
This improvement also positively impacted bauxite imports, the key raw material for aluminum production. From January to August, bauxite imports increased by 11.8% to 107.86 million tons, with a sharp rise of 34.4% in August to 15.55 million tons.
Aurubis Launches New Plant in Georgia
German metal producer Aurubis has inaugurated a new plant in Georgia, USA, dedicated to recycling printed circuit boards and insulated cables to produce recycled copper. This facility differs from existing smelters in Utah and Arizona, which process copper directly from concentrates. The Georgia plant will create 200 jobs.
Aurubis initially announced the project in November 2021 with an investment of $340 million, which increased to $700 million by 2023. That same year, Aurubis partnered with SMS Group, one of the world’s largest producers of metallurgical equipment, to develop and supply the technology for the plant. Aurubis is also expanding its Virginia facility, with completion expected next year.
Glencore Joins Cobalt Consortium
Global commodities giant Glencore has joined forces with Chilean Cobalt and US Strategic Metals to mine and process cobalt for supply to various US consumers. The consortium plans to develop the Cobaltera project in Chile and construct a cobalt production facility in the US.
This collaboration is expected to bolster the supply chains of non-ferrous metals for North American producers of lithium-ion batteries and specialty alloys. US Strategic Metals has secured a letter from the US Export-Import Bank offering potential debt financing of $400 million for 15 years to fund the Madison project in Missouri, which includes the development of a cobalt deposit with recoverable reserves of 33,700 tons. The project includes a mothballed mine that operated from 1844 to 1961, and reclamation efforts are currently underway.
The new mining and metallurgical complex, set to launch next year, will produce 3,800 tons of cobalt annually. Cobalt concentrates from Cobaltera may also be supplied to the complex.
Unique Experiment Planned in Alaska
Alaska Energy Metals, in collaboration with the Colorado School of Mines and Virginia Polytechnic Institute, has announced plans for groundbreaking research on carbon dioxide absorption by igneous rocks. The study will take place at the Eureka deposit in Alaska, which contains magnesium-rich rocks that naturally react with atmospheric carbon dioxide to form inert carbonates, trapping the gas for millions of years.
The Eureka deposit holds large reserves of copper, nickel, cobalt, and platinum metals, essential for the energy transition. The research will focus on how minerals like brucite, olivine, anorthite, and pyroxene absorb carbon dioxide, which could have significant implications for carbon sequestration efforts.
Prediction: Metals Companies Will Invest in Carbon Sequestration
The global metallurgical industry is increasingly pursuing projects to reduce or absorb carbon emissions. This trend is primarily seen in the steel industry, which is a major source of carbon emissions. However, the non-ferrous metals sector is also a significant emitter and generates large volumes of solid waste, including copper, lead, zinc, and nickel slags.
These slags contain silicate minerals that can absorb carbon dioxide, transforming into stable silicates. According to Japanese researchers, non-ferrous metallurgy could reduce carbon emissions by 9-25% through this process. Given the industry’s focus on reducing its carbon footprint, it is expected that metals companies will invest heavily in carbon sequestration projects in the coming years, transitioning from research to industrial implementation.
