Australian Copper Miners - What is Copper?

Copper, the most critical metal…

Copper (Cu) is a reddish metal with natural corrosion resistance and high electrical and thermal conductivity. This extremely ductile, malleable metal of group 11 (Ib) in the periodic table is found in the free metallic state in nature. Most copper occurs in ores and must be smelted or extracted from its ore for purity through the process of **copper mining** and processing before it can be used.

Copper was the first metal manipulated by humans and still to this day plays an enormous impact in many industries. According to the U.S. Geological survey, copper ranks as the third-most-consumed industrial metal in the world after iron and aluminium.

With governments worldwide continuing to outline plans to reduce carbon emissions, move towards electrifying transportation and accelerate efforts towards green energy, interest in the copper mining market is surging. Many companies operating in the fast-growing Electric Vehicle (EV) industry, the renewable energy industry and a variety of other green sectors are looking to secure a consistent supply chain for the future. Like Vanadium, this unique mineral is also classified by the Australian Government as a ‘Critical Mineral’ and is strongly backed and supported by Federal and Queensland Governments. Copper has also been described as the gateway to various other elements on the critical minerals list that are produced as a by-product of copper mining and as one of the various Australian copper miners, Critical Minerals is working to meet that growing demand.

Copper Demand Outlook

As previously mentioned, several-long term trends are presently driving growth in copper demand and are anticipated to continue to do so in the coming decades. Copper’s widespread use in civil infrastructure renewal, increased consumer use of electronics, the move towards electric vehicles (EVs) and prevalent use in renewable energy all require large amounts of copper to function. As the green revolution gears up, copper mining and its uses will become even more important for human progress.

Figure 2: Copper Price for 7 Years and USD-EUR Movement

*Source: Acuity Knowledge Partners, 2021*

Recently, despite the unfolding COVID-19 crisis, LME copper prices have reached their all-time high, largely driven by the aforementioned trends and supply related issues. Large commodity trading firms are extraordinarily bullish on future copper prices, with price targets set at USD 20, 000 per metric ton by 2024 (USD 9,160 per metric on 30 September 2021). Figure 2 above depicts copper’s price movements from 2014 to 2021 charted alongside the USD-EUR currency pair.

Figure 1: Demand-Supply Gap

*Source: International Copper Study Group (ICSG)*

Figure 1 above depicts how the demand for copper is increasing whilst the demand-supply gap is widening. With Chile, the world’s largest copper producer, expected to face supply-related challenges in the future off the back of increased regulation and this insatiable demand for copper continuing to rise, questions surrounding there being enough copper available for future electrification and standard uses are arising. Media reports are suggesting that without a massive acceleration of copper production worldwide, this gap will widen further to 8.2m metric tonnes by 2030 (Source: Acuity Knowledge Partners, 2021). This is why, as one of the upcoming Australian copper miners, Critical Minerals Group is securing multiple projects to meet the increasing global demand.

“Every time you switch on a light, use an appliance in your home or turn on a tap, it is copper that is delivering the electricity or water to you. However, copper isn’t just a key metal utilised in civil infrastructure. Currently, copper is playing an increasingly large role in alternative energy as it is a key component in wind turbines, solar panels and electric vehicles.”

Copper Use Applications

Construction

Copper is commonly used in the construction industry and has a number of use applications including: water pipes, tubing, refrigeration lines, heat pumps, cooling systems, gutters, downpipes, coping, home appliances etc. One home can contain on average 439 pounds of copper.
Power Grid

Copper is the electrical conductor in many categories of electrical wiring. Copper wire is used in power generation, power transmission, power distribution, telecommunications, electronics circuitry, and countless types of electrical equipment. As the green revolution gears up, copper mining and its uses will become even more important for human progress.
Transport

Copper mining and the use of copper are also highly prevalent in the transportation sector, including in the fabrication of ships, railways, planes and automobiles. Copper alloys are standard materials in shipbuilding, from bolts and rivets to propellers and condenser pipes. In the railway industry, the metal is used to manufacture many train parts, including motors, brakes and controls, and can also be found in electric and signal systems. Planes need copper for cooling, hydraulics and navigation, along with electrical systems. In the auto industry, copper is an essential component in brakes, bearings, connectors, motors, radiators and wiring. One conventional vehicle alone can contain as much as 50 pounds of copper.
Renewable Energy Infrastructure

Copper is a highly efficient conduit, that is used in renewable energy systems to generate power from solar, hydro, thermal and wind energy across the world. Copper is one of the best renewable resources which is why we're leading the charge as one of the upcoming Australian copper miners. It is one of the few materials that can be recycled over and over again without a loss in performance.
Electronic Products

Copper’s supreme electrical conductivity properties and abundance as a raw material make it the most efficient and cost-effective metal for electronic products. The red metal is found in the form of electrical wiring and printed circuit boards in the vast majority of today’s consumer electronic products — from cell phones, laptops and TVs to surveillance systems, power tools and robotic vacuum cleaners.
Electrical Vehicles (EV's)

The dawn of the electric vehicle (EV) represents another huge market for copper and emerging Australian copper miners, as the technology relies heavily on this metal. In fact, each EV requires two to four times more copper than a conventional vehicle. EV charging stations also require large amounts of copper.