This is how climate change is impacting global copper mining - The Times of India
This is how climate change is impacting global copper mining
Rising demand for copper in clean-energy initiatives drives prices to two-year peaks. Yet, a report underscores climate change's threat, indicating that half of global copper mining faces drought risks. This revelation raises concerns about future metal supplies, highlighting the urgent need for sustainable mining practices amid environmental challenges. (Image:Unsplash)
PricewaterhouseCoopers LLP report indicates that even under an optimistic low emission scenario for 2050, over half of the world’s copper mines will face significant, high, or extreme drought risk. (Image:Unsplash)
The study also highlights that for lithium and cobalt, crucial metals in the energy transition, the exposure to drought risk is even higher at 74%. (Image:Unsplash)
Recent months have seen a surge in copper prices, surpassing $10,000 a metric ton. This rally is fueled by anticipations of shortages as mines struggle to meet escalating demand from electric vehicles, grid infrastructure, and data centers. (Image:Unsplash)
Extracting new copper deposits is becoming increasingly challenging and costly, contributing to concerns about future supply shortages. Additionally, heightened scrutiny of environmental and social issues is deterring investment in the sector. (Image:Unsplash)
Climate-related disruptions pose an additional layer of supply risk to the copper industry. While the impacts of climate change on agricultural commodities are well-documented, its effects on minerals, including copper, are less understood. (Image:Unsplash)
Zambia’s copper mines are facing a power supply squeeze due to drought-related issues affecting hydroelectric installations, highlighting the vulnerability of mining operations to climate-related challenges. (Image:Unsplash)
In Chile, water shortages have hampered copper production in recent years, prompting the industry to invest in alternative water sources such as seawater, underscoring the sector's efforts to adapt to changing environmental conditions.
For each of the nine commodities studied by PwC, at least 40% of global supply comes from no more than three countries. In the case of copper, Chile, Peru, and China collectively account for more than half of global production.
The concentration of copper production in a few countries amplifies the potential impact of climate change-related disruptions on global supply. This underscores the need for comprehensive understanding and mitigation strategies to address future challenges.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”