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Visualizing Copper’s Global Supply Chain

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Copper Supply Chain

Copper is all around us: in our homes, electronic devices, and transportation.

But before copper ends up in these products and technologies, the industry must mine, refine and transport this copper all over the globe.

Copper’s Supply Chain

This infographic comes to us from Trilogy Metals and it outlines copper’s supply chain from the mine to the refinery.

Copper's Supply Chain

Copper Deposits Around the World

Copper is a mineral that comes from the Earth’s crust. However, natural history did not evenly distribute it around the world. There are certain geological conditions that need to happen to make an economic deposit of copper.

There are two primary types of copper deposits:

  1. Porphyry Copper Deposits

    These copper ore deposits form from hydrothermal fluids coming from magma chambers below the copper deposit. These are currently the largest source of copper in the world.

  2. Sediment-hosted Copper Deposits

    These are copper deposits that occur in sedimentary rocks that are bound by layers. They are formed by the cooling of copper-bearing hydrothermal fluids.

Copper-containing rock or ore only has a small percentage of copper. Most of the rock is uneconomic material, known as gangue. There are two main copper ore types in mining: copper oxide ores and copper sulfide ores.

Both ore types can be economic, however, the most common source of copper ore is the sulfide ore mineral chalcopyrite, which accounts for ~50% of copper production.

Sulfide copper ores are the most profitable ores because they have high copper content, and refiners easily separate copper from the gangue. Sulfide ores are not as abundant as the oxide ores.

Copper Trade Flows

While copper is a global business, there are clear leaders in the production and refinement of copper based on geology and demand. Chile is the major source for copper, exporting both mined and refined copper.

In a list of the 20 biggest copper mines, 11 reside in Chile and Peru accounting for 40% of mined copper. Meanwhile, China is a leading importer and exporter of refined copper, and it’s home to 9 of the 20 biggest copper smelters in the world.

Copper Imports/Exports

However, this concentrated geography of supply creates risks for the the copper trade.

Inherent Risks

While Chile is one of the richest sources of copper in the world, the mining industry has exploited copper deposits to the point where the grade or quality of the copper ore is declining.

Codelco, the national copper miner of Chile and the world’s largest producer of copper, plans to spend $32B by 2027 to extend the life of its current mines and maintain its copper output.

In addition to declining grades, the geography of copper mining exposes the risk of supply disruption by natural forces.

The borders of Chile and Peru overlap the intersection of the Nazca and the South American Tectonic plates. Movement of these plates can produce powerful earthquakes.

According to one study, regions in Chile and Peru face a greater than 85% chance of a serious earthquake in the next 50 years, potentially disrupting copper mining operations. And according to Wood Mackenzie, a 15-day closure of copper mines in Chile and Peru could wipe out 1.5% of global annual production, or 300,000 tons of copper.

Falling grades and tectonic risk suggest that mining costs are likely to increase, making copper production more expensive and new discoveries more valuable.

Copper for the Future: New Discoveries

As economies grow and infrastructure needs increase, the demand for copper will grow. However, without new discoveries and sources of production, the world could face a shortage of the red metal.

According to data from S&P and the London Metals Exchange, the discovery of copper has not kept up with investment in copper exploration. If this trend persists, there will not be enough copper to replace current resources. On top of this, production from already producing copper mines face resource exhaustion and declining grades.

In order to maintain copper’s supply chain, the world needs new copper discoveries to ensure everyone has access to the materials and products that make modern life.

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More Than Precious: Silver’s Role in the New Energy Era (Part 3 of 3)

Long known as a precious metal, silver in solar and EV technologies will redefine its role and importance to a greener economy.

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Silver More Than Precious

Silver’s Role in the New Energy Era (Part 3 of 3)

Silver is one of the first metals that humans discovered and used. Its extensive use throughout history has linked its name to its monetary value. However, as we have advanced technologically, so have our uses for silver. In the future, silver will see a surge in demand from solar and electric vehicle (EV) technologies.

Part 1 and Part 2 of the Silver Series showcased its monetary legacy as a safe haven asset as a precious metal and why now is its time to shine.

Part 3 of the Silver Series comes to us from Endeavour Silver, and it outlines silver’s role in the new energy era and how it is more than just a precious metal.

A Sterling Reputation: Silver’s History in Technologies

Silver along with gold, copper, lead and iron, was one of the first metals known to humankind. Archaeologists have uncovered silver coins and objects dating from before 4,000 BC in Greece and Turkey. Since then, governments and jewelers embraced its properties to mint currency and craft jewelry.

This historical association between silver and money is recorded across multiple languages. The word silver itself comes from the Anglo-Saxon language, seolfor, which itself comes from ancient Germanic silabar.

Silver’s chemical symbol, “Ag”, is an abbreviation of the Latin word for silver, argentum. The Latin word originates from argunas, a Sanskrit word which means shining. The French use argent as the word for money and silver. Romans bankers and silver traders carried the name argentarius.

While silver’s monetary meanings still stand today, there have been hints of its use beyond money throughout history. For centuries, many cultures used silver containers and wares to store wine, water, and food to prevent spoilage.

During bouts of bubonic plague in Europe, children of wealthy families sucked on silver spoons to preserve their health, which gave birth to the phrase “born with a silver spoon in your mouth.”

Medieval doctors invented silver nitrate used to treat ulcers and burns, a practice that continues to this day. In the 1900s, silver found further application in healthcare. Doctors used to administer eye drops containing silver to newborns in the United States. During World War I, combat medics, doctors, and nurses would apply silver sutures to cover deep wounds.

Silver’s shimmer also made an important material in photography up until the 1970s. Silver’s reflectivity of light made it popular in mirror and building windows.

Now, a new era is rediscovering silver’s properties for the next generation of technology, making the metal more than precious.

Silver in the New Energy Era: Solar and EVs

Silver’s shimmering qualities foreshadowed its use in renewable technologies. Among all metals, silver has the highest electrical conductivity, making it an ideal metal for use in solar cells and the electronic components of electric vehicles.

Silver in Solar Photovoltaics

Conductive layers of silver paste within the cells of a solar photovoltaic (PV) cell help to conduct the electricity within the cell. When light strikes a PV, the conductors absorb the energy and electrons are set free.

Silver’s conductivity carries and stores the free electrons efficiently, maximizing the energy output of a solar cell. According to one study from the University of Kent, a typical solar panel can contain as much as 20 grams of silver.

As the world adopts solar photovoltaics, silver could see dramatic demand coming from this form of renewable energy.

Silver in Electric Vehicles

Silver’s conductivity and corrosion resistance makes its use in electronics critical, and electric vehicles are no exception. Virtually every electrical connection in a vehicle uses silver.

Silver is a critical material in the automotive sector, which uses over 55 million ounces of the metal annually. Auto manufacturers apply silver to the electrical contacts in powered seats and windows and other automotive electronics to improve conductivity.

A Silver Intensive Future

A green future will require metals and will redefine the role for many of them. Silver is no exception. Long known as a precious metal, silver also has industrial applications metal for an eco-friendly future.

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Visualizing All the Known Copper in the World

Are we running out of copper? This graphic from Trilogy Metals paints a clear picture of all the copper in the world, above and underground.

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All the Copper in the World

Visualizing All the Known Copper in the World

Copper has many important applications in the modern economy. From smartphones and cars, to homes and hospitals, we use the metal almost everywhere, especially with renewable energy.

Often, consumers take for granted the accessibility to modern technology without the thought of where the materials come from or their impact on the environment. The world and its resources are finite and confined by both geography and the technology used to extract resources.

As governments and economies struggle to achieve a sustainable balance between humanity’s material impact and the health of the planet, knowing the availability of resources will become a critical pivot for achieving and maintaining that balance.

Copper is one such resource—and today’s graphic from Trilogy Metals outlines all the copper ever mined and what known resources still exist on Earth.

Are we running out of copper?

Above Ground Copper Resources

The production of mined copper has increased dramatically over the last two decades, From 9.8 million metric tons in 1995 to 20 million metric tons in 2019, a 104% rise over 25 years.

A total of 700 million metric tons of copper have been mined throughout history. Based on the 2019 average price of $6,042/metric ton, that’s worth $4.2 trillion—more than the value of Apple and Amazon combined.

Chile has been the source of the majority of the world’s copper and the biggest copper mining nation. Together, Chile, Peru, and China account for 48% of current global copper production.

RankingCountryMine Production 2019 (Ktons)CountryReserves 2019 (Ktons)
#1Chile5,600Chile200,000
#2Peru2,400Peru87,000
#3China1,600Australia87,000
#4United States1,300Russia61,000
#5Congo1,300Mexico53,000
#6Australia960United States51,000
#7Zambia790Indonesia28,000
#8Mexico770China26,000
#9Russia750Kazakhastan20,000
#10Kazakhastan700Congo19,000
#11Indonesia340Zambia19,000
Other Countries3,800Other Countries220,000
World Total20,000World Total870,000

Source: USGS

As we enter the era of renewable energy, electric vehicles, and see more global economic growth, the demand for copper will continue to rise. In fact, the Copper Alliance projects an increase of 50% in just the next 20 years.

Are We Running Out of Copper? Not So Soon

Although a large chunk of the Earth’s copper is already above ground, there’s still more to mine.

According to the USGS, identified copper resources amount to 2.1 billion metric tons, with a further 3.5 billion metric tons in undiscovered resources.

At current production rates, it would take about 105 years for us to use all of it and this does not even account for recycling or new discoveries. Copper is 100% recyclable, and nearly all of the 700 million metric tons of mined copper is still in circulation. With this in mind, it’s safe to say that we won’t be running out of copper anytime soon.

Despite copper’s apparent abundance, the red metal is expensive to actually get out of the ground. As a result, the supply of copper has often fallen short in meeting its rising demand. This, in addition to falling resource grades in Chile, the largest producer of copper, emphasizes the need for new discoveries and mines.

While there are known reserves of copper above the ground, the Earth remains largely unexplored because of the inability to explore for minerals in the depths of the oceans and other planets. As the readily available supply of copper becomes scarce, the incentive to mine currently uneconomic copper increases.

A Mineral Intense Future

Most consumers take the immediate availability of materials such as copper and other metals for granted, with little thought about whether there is enough.

But it’s important to remember that these materials are as finite as the dimensions of the Earth. In this material world, understanding what is and what is not available is critical for a sustainable future here on Earth.

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