USGS Rejects Copper as Critical Mineral despite Huge Shortage and Biggest Producers Push, Citing Misleading Arguments

Telah Terbit: May 26, 2023 11:09 (GMT+8)
The status of copper is becoming more and more important. In anticipation of future supply crisis of copper, many copper giants have worked hard to find high-level political allies to support their efforts to include copper to the list of key minerals in the United States.

The status of copper is becoming more and more important. In anticipation of future supply crisis of copper, many copper giants have worked hard to find high-level political allies to support their efforts to include copper to the list of key minerals in the United States. But in the US, despite support from some senior politicians for the local copper industry, the United States Geological Survey (USGS) says copper has not yet reached the status needed to be included on the US Critical Minerals List.

According to news from Mining and Bloomberg, the Copper Development Association (CDA) stated that although some high-level political allies of the USGS expressed support for the local copper industry, the USGS has informed members of Congress and senators that copper has yet to reach the status of a critical mineral that needs to be included in the official list of commodities at risk of undersupply.

Copper's supply risk score is currently above the threshold for automatic inclusion on the 2022 Critical Minerals List, the CDA said. The USGS justified its decision by citing misleading arguments that were not part of its official 2022 approach. “Unlike in Europe, where copper was recently included in its proposed list of critical and strategic raw materials based on projections of future supply and demand, the USGS addresses supply risks with a forward-looking analysis. The USGS does not address current and forward-looking policy requirements that could lead to shortages in the domestic copper supply chain. “

"Continuing supply trends and solid data confirm that copper supply risk is not a short-term issue that will correct itself if decisive, immediate and strategic action is not taken," CDA President and CEO Andrew G. Kireta said in a statement. "

Kireta noted that the USGS' last official assessment of the 2022 critical minerals list was based on copper trade data from 2014 to 2018, which represented supply risk, was five to nine years out of date, and was too old and pointless.

"There are major gaps in our ability to mine and process these minerals to ensure future energy security and the government knows how important copper is to our domestic and national security," Sinema said in an interview at the time.

The letter warned of "significantly increased supply risks" for copper due to economic and geopolitical events such as the Russia-Ukraine conflict. Timing is of the essence, given the huge investment required, the time lag for new supply sources, and projected demand.

Some of the biggest copper miners including Rio Tinto, BHP Billiton and Freeport-McMoRan, as well as manufacturers such as Mueller Industries Inc., have urged the U.S. government to consider copper a critical mineral, adding to a list of 50 other minerals the government has identified as important.

It is reported that the list of critical minerals in the US is updated every three years, and includes key battery metals needed for electric vehicle production, such as nickel, lithium and zinc. Despite lobbying, the 2022 list update did not include copper, although it did add nickel and zinc. Senators had called on the White House to skip the usual three-year review and add copper to the list as soon as possible.

According to a study by Chile's Codelco, the world's largest copper miner, the global energy transition to stop climate change will increase demand for copper from the current 25 million mt per year to more than 31 million mt in 2032.

This means that in the next 8 years, the world will need to build 8 projects equivalent to BHP's Escondida copper mine in Chile, which is the world's largest copper mine.

In terms of inputs, experts estimate that the industry needs more than $100 billion to build mines to make up for a supply shortfall projected to be 4.7 million mt a year by 2030.

More popular news:

'Bond King' Jeffrey Gundlach Says Sharp Fed Rate Cuts By Year-End Will Push Up Gold Prices

Copper Shortage Is Irreparable Even after Biggest Mergers and Acquisitions, Here’s Why

Rio Tinto Warns of Risks for Paying High Premiums for Lithium Mines after Plunging Lithium Prices Triggered Acquisition Rush

Goldman Sachs Lowers Price Forecast for Aluminium, Copper in 2023, Sees Nickel Price Plunging

Zinc Prices to Plunge by 2025, Here's Why

G7 to Expand Sanctions Covering Metals on Russia, Promises Further Support for Ukraine

Citigroup Warns European Commercial Real Estate Values Will Plummet 40%, But Sees Medium-Term Opportunity

IMF: US Debt Defaults Will Take a Heavy Toll on Global Economy, Global GDP Growth Can Plunge

Goldman Sachs Warns of Serious Risks US Dollar Will Lose Reserve Currency Status on Debt Ceiling Standoff

BofA Sharply Lowers Forecast for Oil Price, Global Oil Consumption in 2023

UBS Raises China GDP Growth Forecast, Sees Earnings from China Stock Market Soaring, RMB Appreciating

Global Aluminium Inventory to Plunge Further amid Supply Headwinds, LME Aluminium Prices to React Fast

Takeaways of Warren Buffett and Berkshire Hathaway’s 2023 Annual Meeting

High Lithium Ore Prices in Australia will Drive Lithium Prices Rebound, Reasons Prevent Output to Grow

Sharp Output Cuts Led to Lithium Ore Shortages, High Import Prices Drove Lithium Salt Producers to Shut Down

US Treasury Bill Rates Soar to Record High on Debt Ceiling Jitters

No Other Country can Replace China's Manufacturing Industry Including India

SMM Daily Comments (May 9): Most LME Base Metals Closed Lower, SHFE Nickel Prices Plunge, Ferrous Metals Mostly Rose

SMM Daily Comments (May 12): SHFE Base Metals and Silver Prices Crashed, Most LME Base Metals Prices Went Down, Oil Posted 3-Day Losing Streak

SMM Daily Comments (May 16): Most Base Metals Prices Closed with Losses, SHFE Nickel, Stainless Steel Plunge, Oil Gained on G7 New Measures, US Strategic Petroleum Reserve Replenishment and Supply Concerns

SMM Daily Comments (May 17): Most Metals prices Rose, Ferrous Metals Jumped with Coking Coal soaring 3.29%,Oil Went Down on Surprise Inventory Growth, Poor China Economic Data and IEA Doubt on Russia Cheating on Output Cuts

SMM Daily Comments (May 22): Metals Prices Mostly Fell, Zinc Plunged to over 2-Year Low, Coke Slumped, Fears over US Debt Ceiling and China Demand Structural Issues Weigh on Oil

A Bull Gold Market Has Just Begun 

Fitch Ratings Raises Saudi Arabia IDR, Says World Bank Reason and High Dependence on Oil Remain a Weakness for the Country's Rating

Global Key Base Metals Face Supply Glut, Severe Oversupply for Aluminium, But There Is a Global Copper Shortage

Buffett Talks about Banking Crisis and Bank Stocks He Bought, Munger Warned Commercial Real Estate: the City Will Be Seriously Hollowed Out


Pernyataan Sumber Data: Kecuali informasi yang tersedia untuk publik, semua data lainnya diproses oleh SMM berdasarkan informasi publik, komunikasi pasar, dan mengandalkan model database internal SMM. Hanya untuk referensi dan tidak menjadi rekomendasi pengambilan keputusan.

Untuk pertanyaan atau informasi lebih lanjut, silakan hubungi: lemonzhao@smm.cn
Untuk informasi lebih lanjut tentang cara mengakses laporan penelitian kami, hubungi:service.en@smm.cn
Berita Terkait
Kecelakaan Fatal Dilaporkan di Tambang Radomiro Tomic Milik Codelco
3 jam yang lalu
Kecelakaan Fatal Dilaporkan di Tambang Radomiro Tomic Milik Codelco
Baca Selengkapnya
Kecelakaan Fatal Dilaporkan di Tambang Radomiro Tomic Milik Codelco
Kecelakaan Fatal Dilaporkan di Tambang Radomiro Tomic Milik Codelco
Regulator pertambangan Chili melaporkan pada 1 Oktober bahwa seorang pekerja tewas dalam kecelakaan di tambang tembaga Radomiro Tomic milik Codelco di Chili utara. Informasi awal menunjukkan bahwa insiden terjadi di area yang terkait dengan ban berjalan di dekat Calama. Dinas Geologi dan Pertambangan Nasional Chili telah mengirim personel untuk memeriksa lokasi dan mengambil langkah administratif yang sesuai. Identitas pekerja, pemberi kerja, dan penyebab kecelakaan belum diungkapkan, sementara penyelidikan masih berlangsung. Tidak ada keadaan darurat terkait lainnya yang dilaporkan. Codelco dan pihak berwenang belum mengumumkan penghentian operasional atau dampak produksi.
3 jam yang lalu
Pengawas Escondida Menolak Tawaran Kontrak BHP, Membuka Jalan bagi Potensi Mogok Kerja
4 jam yang lalu
Pengawas Escondida Menolak Tawaran Kontrak BHP, Membuka Jalan bagi Potensi Mogok Kerja
Baca Selengkapnya
Pengawas Escondida Menolak Tawaran Kontrak BHP, Membuka Jalan bagi Potensi Mogok Kerja
Pengawas Escondida Menolak Tawaran Kontrak BHP, Membuka Jalan bagi Potensi Mogok Kerja
Para pengawas di tambang tembaga Escondida milik BHP di Chili telah menolak tawaran perundingan bersama terakhir dari perusahaan, meningkatkan risiko mogok kerja di tambang tembaga terbesar di dunia tersebut. Menurut laporan media asing, 95% anggota serikat pengawas yang berpartisipasi dari total 1.020 anggota memilih mendukung aksi mogok setelah menolak proposal kontrak terbaru BHP. Berdasarkan hukum ketenagakerjaan Chili, serikat pekerja dan perusahaan kini harus menjalani proses mediasi wajib selama lima hari yang dipimpin pemerintah sebelum penghentian kerja yang sah dapat dimulai. Periode mediasi dapat diperpanjang lima hari lagi jika kedua belah pihak menyetujuinya. Serikat pekerja menyatakan bahwa tawaran BHP tidak menunjukkan perbaikan yang berarti dibandingkan kontrak yang ada dan mengkritik usulan persyaratan bagi para pengawas untuk menjalani pelatihan dalam aktivitas operasional pabrik, termasuk mengemudikan truk. BHP menyatakan berencana mengupayakan mediasi melalui Kantor Inspeksi Ketenagakerjaan Chili untuk mencapai kesepakatan. Perkembangan ketenagakerjaan terbaru ini terjadi tak lama setelah kecelakaan fatal terkait pemeliharaan di Escondida, yang sempat mengganggu operasional. Serikat pengawas sebelumnya telah menolak permintaan BHP untuk memperpanjang negosiasi setelah insiden tersebut. Operasional di Escondida sejak itu berangsur pulih. Suara 95% yang mendukung aksi mogok merupakan eskalasi signifikan dalam negosiasi perundingan bersama di Escondida, meskipun belum ada mogok kerja atau dampak produksi yang dilaporkan dari perselisihan ketenagakerjaan pada tahap ini. Proses mediasi wajib memberikan kesempatan bagi BHP dan serikat pekerja untuk mencapai kesepakatan sebelum aksi industrial dimulai. Mengingat posisi Escondida sebagai tambang tembaga terbesar di dunia, penghentian kerja yang berkepanjangan dapat meningkatkan ketidakpastian pasokan tembaga jangka pendek, menjadikan hasil periode mediasi sebagai fokus pasar yang penting.
4 jam yang lalu
Marimaca Mendapatkan Otorisasi Sambungan Jaringan Listrik untuk Deposit Oksida Marimaca
4 jam yang lalu
Marimaca Mendapatkan Otorisasi Sambungan Jaringan Listrik untuk Deposit Oksida Marimaca
Baca Selengkapnya
Marimaca Mendapatkan Otorisasi Sambungan Jaringan Listrik untuk Deposit Oksida Marimaca
Marimaca Mendapatkan Otorisasi Sambungan Jaringan Listrik untuk Deposit Oksida Marimaca
Marimaca Copper telah menerima otorisasi sambungan jaringan listrik untuk Marimaca Oxide Deposit (MOD) di Chile dan telah menyepakati ketentuan komersial utama untuk kerangka perjanjian pembelian tenaga listrik, sehingga memajukan perencanaan infrastruktur listrik proyek seiring dengan perkembangan yang berlangsung. Otorisasi sambungan jaringan listrik ini memberikan jalur bagi MOD untuk terhubung ke sistem kelistrikan Chile, sementara ketentuan komersial yang disepakati menjadi dasar bagi pengaturan pasokan listrik di masa depan. Marimaca menyatakan bahwa kerangka tersebut dimaksudkan untuk mendukung akses proyek terhadap listrik 100% terbarukan. Perusahaan menggambarkan perkembangan ini sebagai tonggak penting dalam pengurangan risiko untuk MOD, karena pasokan listrik jangka panjang yang andal merupakan persyaratan utama bagi operasi penambangan dan pemrosesan yang direncanakan. Marimaca sedang memajukan MOD sebagai proyek pengembangan tembaga oksida di Chile utara. Perusahaan terus memajukan perizinan, rekayasa, dan pekerjaan pengembangan proyek lainnya seiring dengan upaya membawa aset tersebut menuju keputusan konstruksi yang potensial. Tonggak kelistrikan ini memperkuat kesiapan infrastruktur proyek, tetapi perjanjian pembelian tenaga listrik final dan pelaksanaan proyek secara penuh masih bergantung pada langkah pengembangan lebih lanjut dan penyelesaian kontrak. Memperoleh otorisasi sambungan jaringan listrik mengurangi risiko infrastruktur yang penting bagi Marimaca Oxide Deposit dengan memberikan kejelasan yang lebih besar tentang bagaimana proyek dapat mengakses pasokan listrik jangka panjang. Penggunaan listrik terbarukan yang diusulkan juga dapat mendukung produksi tembaga dengan emisi yang lebih rendah. Perhatian kini akan beralih pada finalisasi perjanjian pembelian tenaga listrik dan kemajuan pada tonggak perizinan, pembiayaan, dan pengembangan yang tersisa yang diperlukan sebelum konstruksi.
4 jam yang lalu
USGS Rejects Copper as Critical Mineral despite Huge Shortage and Biggest Producers Push, Citing Misleading Arguments - Shanghai Metals Market (SMM)