Mineral Security

• Copper - Recent Uses:

  • 3rd most used metal in the world and is a key requirement for the electrical and electronics industry.
  • Has become widely used as a component of renewable energy from solar panels to wind turbines.
• Copper - Sources of Copper:

  • Primarily found in igneous rocks, as hydrothermal deposits, but also in sedimentary rocks.
  • Copper mines are only developed where there is more than 5kg of copper per tonne of rock.
  • The main mineral ores copper is found in are bornite, chalcopyrite and malachite.
  • 1.6 billion tonnes of copper accessible on Earth.
• Copper - Sources of Copper (Porphyries):

  • An igneous origin, forming in active tectonic zones, from large masses of molten rock that cool and solidify within the Earth’s crust. 
  • The slow cooling allows large crystals to grow, which are then surrounded by smaller crystals. 
  • As the crystals developed, copper was contained in a separate fluid mineral soup in a relatively dilute form. 
  • As the fluid reduces from continued crystallisation, the concentration of copper increases.
• Copper - Sources of Copper (Strate-bound deposits):

  • Mature sedimentary beds in large continental basins also contain significant copper, such as the central African 'copper belt'.
  • It has been proposed that hydrothermal fluids suffused into carbon-rich deposits and were capped by overlying shales within a massive evolving basin in central Africa.
  • The impermeable layer trapped copper-rich fluids which precipitated into solidified mineral deposits during a metamorphic period associated with mountain-building earth movements.
• Copper - Sources of Copper (Massive sulphide deposits):

  • Associated with volcanic activity and formed as a result of hydrothermal infusions in submarine environments.
  • Occur today surrounding submarine volcanoes and along mid-ocean ridges.
  • Currently exploited reserves are a result of very ancient submarine volcanic activity that has been uplifted and deformed by subsequent tectonic activity to surface formations.
• Copper - Key Producing Regions (USA):

  • 1.3 million tonnes
• Copper - Key Producing Regions (South America):

  • The largest igneous deposits in the world are mined here.
  • Contains six of the top 10 copper mining regions.
• Copper - Key Producing Regions (Peru):

  • 2.4 million tonnes
• Copper - Key Producing Regions (Chile):

  • 5.6 million tonnes.
• Copper - Key Producing Regions (Mexico):

  • 0.77 million tonnes.
• Copper - Key Producing Regions (DRC):

  • 1.3 million tonnes
• Copper - Key Producing Regions (Zambia):

  • 0.79 million tonnes
• Copper - Key Producing Regions (Australia):

  • 0.96 million tonnes
• Copper - Key Producing Regions (China):

  • 1.6 million tonnes
  • Largest consumer
  • Chinese mining operations overseas are more economically appealing.
• Copper - Key Producing Regions (Russia):

  • 0.75 million tonnes
• Copper - Key Producing Regions (Kazakhstan):

  • 0.7 million tonnes
• Copper - Properties & End Uses (Electricity):

  • Ductile
  • Strong and Malleable
  • Electrical conductor
• Copper - Properties & End Uses (Water, liquid vessels and pipework):

  • Heat conductor
  • Corrosion resistant
• Copper - Properties & End Uses (Hygiene):

  • Biostatic - does not sustain bacterial growth
• Copper - Properties & End Uses (Ornamental use)

  • Decorative - sheen when polished
• Copper - Properties & End Uses (Alloys):

  • Easily combined with other metals to make alloys
• Copper - Trade (Copper Ores):

  • The main exporters are countries producing more than their domestic demand.
  • The main importers are end users and/or those with a developed smelting industry.
• Copper - Trade (Refined Copper):

  • The main exporters are producers of ore with smelting operations.
  • Main importers are end users and/or those with a developed smelting industry.
• Copper - Trade (End-use products):

  • Copper is also traded as part of end-use products, which is a form of indirect copper trade.
  • Importing electronic equipment also means the import of copper used in its production.
• Copper - Recycling:

  • Copper is virtually 100% recyclable, making it one of the most widely recycled of all metals.
  • Approximately 40% of the world's demand is met by recycled copper.
  • Recycled copper and its alloys can be used directly or further reporcessed to refined copper without losing any of the metal's chemical or physical properties.
• Copper - Factors impacting prices:

  • Prices tend to reflect the performance of the Chinese economy.
  • From 2015-2017, prices were generally low during China’s economic slowdown.
  • Recovery in 2018 saw prices rise again and they had been expected to reach $7000 per metric tonne in 2020.
• Copper - Covid's impact:

  • The COVID pandemic caused a crash in the Chinese and global economies that was reflected in falling prices for all commodities.
• Resource Peak:

  • The point in time when the production of a resource is at its highest.
  • Can be from a given reserve of the resource as a whole.
  • Can be dependent on the price of a resource.
  • The production rate can rise above the resource peak if there are new discoveries or technological advancements.
  • Reaching a resource peak means that roughly half of the resource should have been accessed.
• Geopolitics of Mineral Ores - Issues:

  • The inter-dependency existing in the international trade of raw materials.
  • The potential for trade wars resulting from fluctuating prices of different minerals.
  • The potential future conflict concerning access to ‘common’ resources.
  • The environmental and socio-economic issues arising from mine developments.
  • The role and dominance of large transnational mining corporations.
  • The role of China in the world’s mining and metals industry.
• Geopolitics of Mineral Ores - Increasing exploration and mining in underdeveloped regions:

  • Technological advances giving increasing viability to mining previously inaccessible deposits in remote, less developed regions.
  • The development of large ocean-going vessels able to carry large quantities of bulk mineral commodities such as iron ore and bauxite.
• Geopolitics of Mineral Ores - China's Impact:

  • China’s actions in securing access to reserves has affected both the lower-income countries competing with China, in attempting to gain access to similar reserves, especially the iron/steel and copper industries.
  • China has continued to increase domestic production as well as importing huge amounts from overseas.
• Geopolitics of Mineral Ores - Role of TNCs:

  • Negotiating exploration rights and leasing land from national governments.
  • Establishing subsidiaries or entering into joint ventures with mining companies from the host nation.
  • Developing infrastructure such as access roads and nearby accommodation to support projects.
  • TNCs can bring economic benefits in terms of jobs and skills to local communities.
  • Critisisms over negligence of the environmental and the social impacts of their operations.
• Geopolitics of Mineral Ores - Role of TNCs (BHP Billiton):

  • HQ - Australia
  • Operates some of the largest mines in the world, mainly in South America and Australia.
  • Mines copper, iron ore, uranium, aluminium, manganese and nickel.
• Geopolitics of Mineral Ores - Role of TNCs (Zijin Mining Group Co, Ltd):

  • HQ - China
  • State-owned operating predominantly in China and Africa.
  • Gold mining and smelting, copper, lead, zinc, silver and iron.
• Geopolitics of Mineral Ores - Role of TNCs (Rio Tinto):

  • HQ - UK, Australia
  • Mainly in Africa, South America and Australia.
  • Iron ore, bauxite, copper and uranium
• Geopolitics of Mineral Ore - Role of TNCs (Glencore):

  • HQ - UK, Switzerland
  • Operates globally.
  • Produces copper, nickel, zinc/lead, aluminium and iron ore.
• Geopolitics of Mineral Ores - Role of TNCs (Vale):

  • HQ - Brazil
  • Primarily in Brazil, where it is the largest iron ore and nickel producer.
  • Nickel mines in New Caledonia, Indonesia and Canda.
  • Copper production in Chile and Zambia.
• Copper - Environmental Issues:

  • Increasing waste per tonne of copper obtained as low-grade ores continually exploited.
  • Price fluctuations affect investment finance.
  • Water supply constraints for mining operations due to climate change and over-use.
  • Energy input - Fuel costs and carbon taxes increasing energy costs integral to mineral processing.
  • Environmental restrictions - Increasing clean-up costs following extrcations.
• Copper Ore Extraction - Key Issues (Land Take):

  • Land area needed is usually much larger than the mine itself whether underground or open-pit mining.
• Copper Ore Extraction - Key Issues (Habitat Loss):

  • Results in loss of species
  • Reduced biodiversity