Nations around the world include copper on their national critical minerals lists. That allows mining companies working with the mineral access to special funds and programs, enabling mining development.
The most recent list in Australia, however, omits copper, relegating it to “strategic mineral” status. This is triggering concerns around the possible impact on exploration and development of copper finds in the coming years.
Jurisdictions publish lists of critical minerals as a way of identifying what minerals are important to the nation for a variety of reasons, including its economy and the move to a greener energy economy. Such lists often open up access to grants and other programs that support mining companies and processors, as well as other projects along the supply chain.
Copper is often listed as a critical mineral because it’s a key material for a green energy transition, and for economies in general, plus its supply chains can be vulnerable.
“There are concerns that this approach does not support copper’s position as a key element underpinning global carbon reduction initiatives and, equally importantly, urbanization of the developing world,” says Laing.
Leaving copper off the main list could compromise Australia’s ability to realize the potential of its copper reserves. “Copper production will likely fall behind consumption requirements and Australia will forego the opportunity to expand its copper mining industry to deliver the product into a lucrative market,” he says.
This change has been mitigated by the announcement of strategic materials hubs across the country, which are intended to support the production of nickel and copper, which both changed status.
Laing says the hubs, which will group processing facilities and technical expertise, could offer many positive benefits, particularly if there’s sufficient government support.
The nation has the third largest reserves worldwide, at 100 metric tonnes, about 10 percent of global reserves.
In that gap lies potential. Laing says the Pilbara region of Western Australia is considered a premier mining region. “With low political risk, well established infrastructure and a highly educated workforce, there are many advantages to developing a copper mine here. However, there are challenges, too.” High costs but also insufficient support from government via funding, plus too much green tape, are barriers to growth.
While those engaged in the industry in Australia have concerns about the removal of copper from the critical minerals list, copper still has an important future. As a strategic mineral, it will be supported through new production hubs.
With the nation’s ample and underdeveloped copper resources, plus the worldwide demand for the mineral in a large array of industries, it remains a key investment opportunity now and for years to come.
Diane Peters is a freelance writer based in Ontario.
This INNSpired article was written according to INN editorial standards to educate investors.
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