Mining Giants Rio Tinto, Usha & Taseko Address Copper Crunch
The global pivot to renewable energy and EVs drives an unprecedented demand for copper. The essential metal, critical for everything from EV batteries to wind turbines, is facing a supply crunch that could impede progress toward clean energy goals.
Swiss bank UBS estimates that the copper supply deficit will exceed 200,000 tons by 2025. The International Energy Forum adds that, to meet the growing demand, more than a billion tons of new copper mining capacity will be needed annually until 2050.
Despite recent drops in copper prices, experts warn that the surplus may be fleeting. Accelerated demand from renewables and EV markets is expected to outpace supply, turning today's temporary abundance into tomorrow's critical shortage.
With copper mines often requiring years to begin production, immediate investments in exploration and mining are necessary to secure future supply chains.
Industry leaders step up exploration
A host of major players are taking action to mitigate the looming copper shortage.
They include Usha Resources, which has begun an Induced Polarisation (IP) survey at its Southern Arm Copper-Gold property in Quebec.
Deepak Varshney, CEO of Usha Resources Ltd, states: "This work represents an important stage in Usha's exploration strategy … ensuring only the highest priority targets are targeted with the diamond drill in our upcoming maiden drill program in the 2024-2025 winter season."
Located in the Abitibi Greenstone Belt, one of the world's richest mineral regions, the property offers significant potential for new copper discoveries.
Meanwhile, Rio Tinto Group has announced the construction of a new 25-megawatt solar plant at its Kennecott copper operation in Utah, adding to an existing 5MW solar facility. The expansion will reduce the mine's Scope 2 emissions by 6%, equivalent to removing 5,000 gas-powered cars from the road annually.
"Sustainable practices and resource production can benefit our company and community," says Nate Foster, Managing Director at Kennecott.
Elsewhere, Taseko Mines has reported progress at its Gibraltar Mine in British Columbia, producing 27 million pounds of copper in Q3 2024.
Stuart McDonald, CEO of Taseko Mines, has highlighted the development of the Connector pit, which is expected to drive increased production in 2025.
Investment needs and global implications
According to Wood Mackenzie, achieving global net-zero emissions by 2050 will require an investment of US$78tn.
Copper must meet soaring demands for renewable energy infrastructure and EVs as a backbone of this transition.
The United Nations is among those to highlight the potential for minerals like copper to foster shared prosperity during this monumental shift.
Technological advancements in mining
Innovations like Usha Resources' IP surveys and Rio Tinto's solar-powered mines exemplify how the industry is leveraging technology to optimise copper production while reducing environmental impact.
Usha's upcoming drilling programme, combined with advancements in geochemical exploration, aims to identify high-yield targets efficiently, bolstering copper supplies.
Addressing copper shortages is urgent. EV adoption accelerates and renewable energy becomes central to global energy strategies; the demand for copper will continue to soar. Industry leaders, governments and investors must act decisively to expand mining capacity and develop sustainable practices to meet this demand.
The stakes are high: a failure to secure adequate copper supplies could slow the global transition to clean energy and jeopardise net-zero ambitions.
With major players like Usha Resources, Rio Tinto and Taseko Mines leading the way, the industry is mobilising to address these challenges. However, sustained investment and innovation are critical to ensuring copper supply can support the world's ambitious green energy goals.
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