Posts Tagged ‘copper’
electrification, copper, water and South Australia
we shall see..
So, according to the South Australian government, ‘SA contains 69% of Australia’s… demonstrated resources of copper’, which is an essential element for the future of electrification worldwide, so we’re sitting on a copper goldmine, or a golden coppermine, and what is it with gold anyway?
A provocative article by Michael McGuire was published in the Adelaide Advertiser’s Weekend magazine, for June 17-18, highlighting prospective developments regarding mining copper in Kapunda and environs, a region that, in the 19th century, made South Australia ‘the biggest producer of copper in the British Empire’, until the copper market crashed in 1870s, and the mines were abandoned. The article also highlighted BHP’s interest in this suddenly in-demand element, and the problematic past relationship between the mining giant (in little Australia’s terms) and the SA government.
I recall some months ago conversing with a friend at a culinary gathering, and the subject turned to renewable energy and EVs. He was negative about their global uptake, and when I pressed him on why, he only had one word to say – copper. I was a bit miffed about his pouring cold water on my optimism, but it led me to writing a piece on copper here back in October 2022. The last words of that piece make for a good lead-in:
Australia, by the way, has the second largest copper reserves in the world (a long way behind Chile), and this could presumably be turned to our benefit. I’m sure a lot of magnates are magnetised by the thought.
So. As we know, EVs require about four times as much copper as ICE vehicles. Wind farms, solar panels and charging stations are also heavily reliant on copper. According to McGuire’s article:
Electric car sales increased by 60% last year to pass 10 million globally for the first time, making up about 14% of the market. Some are predicting as many as 60% of all new car sales will be electric by 2030 and close to 100% by 2050…
And some are not. But there’s no doubt that EVs are on the up and up, with Australia being shamefully behindhand, largely due to our lack of manufacturing here, and our distance from other EV manufacturers, not to mention government ‘hesitancy’.
Making copper more available here will clearly make a difference to all that. But one problem that needs to be solved is water. Mining and smelting copper requires lots of it. BHP has been tapping into the Great Artesian Basin, but this isn’t environmentally sustainable, so the company has been discussing a new initiative with the state government. The proposed Northern Water Supply Project includes the building of a desalination plant in Whyalla, and a pipeline to pump water to Olympic Dam and other sites in the state’s far north, a hugely expensive project (the required environmental impact statement alone is costed at $230 million) which the SA government is likely to provide funding for only if BHP, with which it has had a more than troubled relationship, chips in a substantial amount.
BHP’s Olympic Dam, over 500 kms north of Adelaide, is a resource centre for copper, gold and uranium, which, of course, is now being touted as a sustainable decarbonisation hub. And there are other projects and opportunities, involving state and private enterprise. As well as the water facility in Whyalla, there are plans for a $600 million hydrogen plant, and for upgrading Whyalla’s steel plant, and exploiting the region’s undeveloped iron ore resources. SA is already leading the country in its abundance of solar and wind power, so, according to McGuire,
.. the theory is, South Australia becomes a centre for green copper and green steel production at the very time the world is crying out for such products. As an aside, the cheaper energy available from hydrogen, sun and wind also attracts a whole heap of other businesses to South Australia.
Again, all of this, especially the hydrogen, will require a large volume of available water, meaning that various projects will have to come together to make the projected boom happen. One person who seems bullish about it all is BHP’s chief operating officer, who points out that though the state has 70% of Australia’s copper resources, it’s currently producing less than 30% of the country’s mined copper. Basto was previously in charge of BHP’s Escondida mine in Chile, the largest copper mine on the planet, and has headed the company’s iron ore operation in Western Australia. Currently he is working on developments from BHP’s $9.6 billion acquisition of Oz Minerals, which has successfully operated copper mines in the far north – at Carrapateena and Prominent Hill. These mines, along with Olympic Dam, and Oak Dam (a new and apparently very promising development), ‘all lie within a geological zone known as the Gawler Craton’, which Basto predicts, or hopes, will become a lucrative mining hub in the not too distant future. Australia, as he and others point out, is a ‘stable jurisdiction’ for mining, compared to other resource-rich regions in South America and Africa.
This is a real issue. Historically, locals have been worked more or less to death, in Columbian silver mines for example, as described in Gaia Vince’s Adventures in the Anthropocene. And it’s still happening. Wikipedia provides a horrific list of mining disasters over just the last 20 years in the largely impoverished Democratic Republic of the Congo, mostly from artisanal or small-scale ‘independent’ mining. Which brings us back to Kapunda, and restoring its copper reputation, with a difference. A wife and husband team, Philippa and Leon Faulkner have formed a company, EnviroCopper, based in Kapunda, which will, eventually, re-open the mine using a process called ‘in situ recovery’. To quote from McGuire’s article:
… this will not be a regular mine. No big holes. No big explosions. Just some white pipes poking out of the ground. Which, with the town of Kapunda right there, is a definite advantage.
The process, used for uranium mining further north, involves pumping an acidic solution ‘through the porous rocks, which dissolves the copper, and then the liquid is pumped back up to the surface through bores or wells, and the metal is recovered’. It is much more enviro-friendly and low impact than the old 19th century form of mine, though it may still be a pipe dream at present. The next year or so will be key to whether government, big mining and various smaller enterprising players can get it all together to take the state further down the road of green energy production and utilisation. It will be most interesting…
References
‘The next Big Thing’, by Michael McGuire, The Advertiser SA Weekend, June 17-18 2023
https://www.mining-technology.com/marketdata/ten-largest-coppers-mines/
Gaia Vince, Adventures in the Anthropocene, 2014
our electric future – is copper a problem?
So I recently had a conversation with someone who told me that electric vehicles were not the future because – copper. I must admit that I immediately got tetchy, even though I knew nothing about the ‘copper problem’, or if there actually was one. My interlocutor wasn’t anti-green in any way, he was more into electric bikes, tiny-teeny cars, and people staying put – not travelling anywhere, or not far at least. Perhaps he imagined that ‘virtual travel’ would replace real travel, reducing our environmental footprint substantially.
It has struck me that his rather extreme view of the future was an example of the perfect being the enemy of the good. I’m all for electric bikes, car-sharing and even a reduction in travelling, within limits (in fact migration has been associated with the human species since it came into being, just as it has with butterflies, whales and countless other species) but although I note with a certain disdain that family cars are getting bigger just as families are getting smaller (in our WEIRD world), I have no faith whatever that those family cars are going to be abandoned in the foreseeable.
But getting back to copper, the issue, which I admit to having been blind to, is that with a full-on tilt to electrification, copper, the world’s most efficient and cheaply available electric conductor, might suddenly become scarce, putting us in a spot of bother. But will it? That depends on who you talk to. Somehow the question brings back to mind David Deutsch’s The beginning of infinity, a super-optimistic account of human ingenuity. Not enough copper? No problem we can’t engineer our way out of…
Currently demand for copper is outstripping supply, but will this be a long term problem? CNBC made a video recently – ‘Why a looming copper shortage has big consequences for the green economy’ – the title of which, it seems to me, is more pessimistic than the content. Copper has been an ultra-useful metal for us humans, literally for millennia. But its high conductivity – second only to silver, which presumably is more rare and so far more expensive – has made it the go-to metal for our modern world of electric appliances. It also has the benefit of being highly recyclable, so it can be ripped out of end-of-life buildings, vehicles and anything else and re-used. But EVs use about four times more copper than infernal combustion vehicles, and wind turbines as well as solar panels require lots of the stuff, as do EV charging stations, and there aren’t too many new copper mines operating, so…
From what I can gather online, though, there’s no need for panic. Apparently, we’re currently utilising some 12% of what we know to be available for mining. The available stuff is the cheap stuff, and until now we’ve not really needed much more. But new techniques of separating copper from its principal ore, chalcopyrite, look promising, and markets appear to be upbeat – get into copper, it’ll make your fortune!
There’s also the fact that, though things are changing, the uptake of EVs is still relatively slow. People are generally talking about crunch time coming in that vaguely defined era, ‘the future’. High copper demand, low supply seems to be the mantra, and all the talk is about investment and risk, largely meaningless stuff to impoverished observers like me. In more recent times, copper prices have dropped due to ‘a manufacturing recession caused by the energy crisis’. I didn’t know about either of these phenomena. Why wasn’t I told? Mining.com has this to say about the current situation, FWIW:
Copper prices typically react to the ebb and flow of demand in China, which accounts for half of global consumption estimated at around 25 million tonnes this year. But this time the focus is on Europe, accounting for 15% to 20% of the global demand for copper used in power and construction. The region is facing surging gas and power prices after energy supply cuts, which Russia blames on Western sanctions over the Ukraine conflict. The European Union has made proposals to impose mandatory targets on member countries to cut power consumption.
Make of this what you will, I have quoted the most coherent passage in a mire of economics-speak. Presumably, supply is affected by the volatile conditions created by Mr Pudding’s testosterone. So everybody is saying that copper is falling in price, and this is apparently bad. Here’s another quote to make sense of:
Due to closing smelters and falling demand from manufacturers, an excess of copper stockpiles has been building up in a number of Shanghai and London warehouses, also contributing to downward pressure on prices.
Meaning copper isn’t worth much currently, though this is probably a temporary thing. Glad I haven’t anything to invest.
I think the bottom line in all this is don’t worry, be happy. Copper availability for the energy transition is subject to so many incoherent fluctuations that it’s not worth worrying about for the average pundit. Here in Australia the issues are – you can solarise your home no worries. Buying an EV is another matter, since none are being manufactured here, so governments need to be pressured to create conditions for a manufacturing base, and the infrastructure to support the EV world. Storage and battery technology need to be supported and subsidised, as is in fact starting to happen, with a more supportive federal government, and state Labor governments here in South Australia, and in Western Australia, Queensland and Victoria.
So, to conclude, having read through quite a few websites dealing with copper as the go-to metal for the transition to green energy (some links below), I haven’t found too much pessimism or concern about Dr Copper’s availability, though there are clearly vested interests in some cases. Australia, by the way, has the second largest copper reserves in the world (a long way behind Chile), and this could presumably be turned to our benefit. I’m sure a lot of magnates are magnetised by the thought.
References
https://oilprice.com/Energy/Energy-General/A-Copper-Crisis-Threatens-The-Energy-Transition.html
https://intellinews.com/ev-market-may-create-copper-deficit-219864/