Copper 2017-10-11 ICSG Factbook 2017

The World Copper Factbook 2017

About ICSG The International Copper Study Group (ICSG) was formally established as an autonomous inter‐governmental organization on 23 January 1992, following a series of Ad Hoc meetings sponsored by the United Nations (UNCTAD) in 1986 and 1987 to review the world situation of copper and discuss the need for such a body. ICSG serves to increase copper market transparency and promote international discussions

The current members of ICSG of ICSG are: Australia

Japan

Belgium

Luxembourg

Brazil

Mexico

Chile

Mongolia

China

Peru

European Union

Poland

Finland

Portugal

France

Russian Federation

In order to fulfill its mandate, the Study Group has three main

Germany

Serbia

objectives:

Greece

Spain

India

Sweden

Iran

United States

Italy

Zambia

and cooperation on issues related to copper.

 

Increase market transparency by promoting an exchange of information on production, consumption, stocks, trade, and prices of copper, by forecasting production and consumption, and by assessing the present and future capacities of copper mines,

 

 

plants, smelters and refineries.

As part of its mandate to provide a global forum where industry and

Promote international cooperation on matters related to copper,

governments can meet and discuss common problems and objectives,

such as health and the environment, research, technology

ICSG meetings are held twice per year, typically in the Spring and Fall

transfer, regulations and trade.

at ICSG Headquarters in Lisbon, Portugal. The meetings of the Study

Provide a global forum where industry and governments can meet

Group are open to government members, their industry advisors and

and discuss common problems/objectives. The ICSG is the only

invited observers.

inter‐government forum solely dedicated to copper.

International Copper Study Group

ii

The World Copper Factbook 2017 ICSG Officers and Secretariat INTERNATIONAL COPPER STUDY GROUP OFFICERS FOR 2017

Chairman

Mr Sergio Hernandez (Chile)

Vice Chairman

Mr Li Yusheng (China)

Vice Chairman

Mr Ricardo Labo (Peru)

STANDING COMMITTEE

STATISTICAL COMMITTEE

Chairman

Mr Daniel Flanagan (U.S.A.)

Vice Chairman

Ms Manuela Ramirez (Spain)

Vice Chairman

Ms Cao Mingyue (China)

INDUSTRY ADVISORY PANEL

Chairman

Mr Salim Bhabhrawala (U.S.A.)

Vice-Chairman

Mr Naoki Kasuya (Japan)

Finance Committee Chairman

Mr Henrique Santos (Portugal)

ENVIRONMENTAL AND ECONOMIC COMMITTEE

Chairman

Vacant

Vice Chairman

Mr K D Diwan (India)

Contacts: International Copper Study Group Rua Almirante Barroso, 38‐6º 1000‐013 Lisbon, Portugal Tel: +351‐21‐351‐3870 Fax: +351‐21‐352‐4035

Chairman

Mr Mark Loveitt (IWCC)

SECRETARIAT

Secretary-General

Mr Don Smale

Director of Market Research and Statistics

Ms Ana Rebelo

Director of Economics and Environment

Mr Carlos Risopatron

Manager of Statistical Analysis

Mr Shairaz Ahmed

Secretary

Ms Fatima Cascalho

Acknowledgements and Copyright: ICSG would like to thank the International Wrought Copper Council, the International Copper Association, the Copper Development Association, the European Copper Institute, the U.S. Geological Survey, the U.S. National Park Service, the British Museum and Mr Luis Hernán Herreros Infante for their contributions to the Factbook.

e‐mail: [email protected]

The International Copper Study Group's World Copper Factbook © 2017 is

website: www.icsg.org

published by the ICSG.


ii

The World Copper Factbook 2017 Key Physical Properties of Copper

Copper Properties and Benefits Chemical Chemical Symbol

Cu

At omic om ic Number Num ber

29

At omic om ic Weight Weig ht

63.54

Density

8960 8960 kg m

Melti Melti ng poin t

1356 1356 K

Specific Heat Heat cp (at 293 K)

0.383 0.383 kJ kg-1 K-1

Thermal cond uct ivit y

394 W m-1 K-1

Coeffici ent of linear expansion

16.5 16.5 x 10-6 10-6 K-1

Young's Modulus of Elastici ty

110 110 x 109 109 N m-2

Electri cal Conduct ivi ty (% IACS)

1.673 1.673 x 10 ohm-m

Cryst al Struc tur e

Face-Ce Face-Centered ntered Cubic

-3

-8

But copper’s benefits extend beyond mechanical characteristics:  

Deficiencies, as well as excesses, can be detrimental to health.

Copper makes vital contributions to sustaining and improving society. Copper's chemical, physical and aesthetic properties make it a material

Copper is essential to the health of plants, animal and humans.

 

Antimicrobial

Properties. Properties.

Due

to

copper’s

antimicrobial

of choice in a wide range of domestic, industrial and high technology

properties, copper and copper alloy products can be used to

applications.

eliminate pathogens and reduce the spread of diseases. of diseases.  

Recycling. Recycling. Copper is one of the most recycled of all metals.

Alloyed with other metals, such as zinc (to form brass), aluminum or

Virtually all products made from copper can be recycled and

tin (to form bronzes), or nickel, for example, it can acquire new

recycled copper loses none of its of its chemical or physical properties.

characteristics for use in highly specialized applications. In fact, society's infrastructure is based, in part, on copper.


 

Energy Efficiency. Efficiency. Copper can improve the efficiency of energy production and distribution systems.

3


Copper in History

A rchaeological rchaeological evidence demonstrates that copper was one of the first metals used by humans and was used at least 10,000 years ago for items such as coins and ornaments in western Asia. During the prehistoric Chalcolithic Period (derived Period (derived from chalkos, chalkos, the Greek word for copper), man discovered how to extract and use copper to produce ornaments and implements. As early as the 4th to 3rd millennium BC, workers extracted copper from Spain's Huelva region. The discovery that copper, when alloyed with tin, produces bronze, led to the Bronze Age, Age, c. 2,500 BC. Israel's Timna Valley provided copper to the Pharaohs (an Egyptian papyrus records the use of copper to treat infections and to sterilize water). Cyprus supplied much of the Phoenician, Greek and Roman needs for copper. "Copper" is derived from the latin Cyprium, Cyprium, literally Cyprian metal. The Greeks of Aristotle's era were familiar with brass as a valued copper alloy. In South America, the pre-Columbian Maya, Aztec and Inca civilizations exploited copper, in addition to gold and silver. During the Middle Ages, Ages, copper and bronze works flourished in China, India and Japan. The discoveries and inventions relating to electricity and magnetism of the late 18th and early 19th centuries by scientists such as Ampere, Faraday and Ohm, and the products manufactured from copper, helped launch the Industrial Revolution Today, copper continues to serve society's needs. Although copper has been in use for at and propel copper into a new era. Today, least 10,000 years, innovative applications for copper are still being developed as evidenced by the development of the copper chip by the semi-conductors industry.

Images courtesy of the of the British Museum, the Copper Development Association Association and ICSG.


5


Copper Today The global demand for copper continues to grow: world refined usage has more than tripled in the last 50 years thanks to expanding sectors such as electrical and electronic products, building construction, industrial machinery and equipment, transportation equipment, and consumer and general products. Some of the highlights of 2015 copper production and usage are listed below. In the chapters that follow, more in‐depth information is presented on copper production, trade, usage, and recycling. For the most up‐to‐date information on the global copper market, please visit our website at www.icsg.org www.icsg.org..

Copper Production Highlights

Copper Usage Highlights

Preliminary figures indicate that global

Refined copper usage (usage by semis plants or the

copper mine production in 2016 reached

first users of copper) in 2016 reached 23.5 million

20.2 million tonnes. The largest producer

tonnes. China was also the largest consumer of

of mined copper was Chile (5.6 million

refined copper in 2016 with apparent usage of

tonnes).

around 11.7 million tonnes.

Smelter

production

in

2016

reached

According to the International Copper Association

around 19.0 million tonnes. China was the

(ICA), equipment was the largest copper end‐use

largest producer of blister of blister & anode in 2016

sector in 2016, followed by building construction

(7.2 million tonnes)

and infrastructure.

Refinery Production in 2016 increased to 23.3 million tonnes, including 3.9 million tonnes of secondary of secondary refined production.

New copper applications being developed include antimicrobial copper touch surfaces, lead‐free brass plumbing, high tech copper wire, heat exchangers, and new consumer products as well.

Images courtesy of CDA of CDA and Luis Hernán Herreros from www.visnu.cl www.visnu.cl,, © Copyright Anglo American (Faena Los Bronces y Mantos Blancos – Blancos – Chile)


6


Global Distribution of of Identified Identified and Undiscovered Copper Resources in Porphyry and Sediment‐hosted Stratabound Copper Deposits

1/

In 2013 the U.S. Geological Survey (USGS) completed a geology‐based, cooperative international assessment of copper resources of the world

2/.

The USGS

assessed undiscovered copper in two deposit types that account for about 80% of the world’s copper supply. Porphyry copper deposits account for about 60% of the of the world’s copper. In porphyry copper deposits, copper ore minerals are disseminated in igneous intrusions. Sediment‐hosted stratabound copper deposits, in which copper is concentrated in layers in sedimentary rocks, account for about 20% of the world’s identified copper. The mean undiscovered totals for porphyry and sediment‐hosted deposits are 3,100 and 400 Mt respectively, resulting in a global total of 3,500 of 3,500 Mt of copper. of copper. With identified copper resources currently estimated at 2,100 Mt, total copper resources (undiscovered + identified) are estimated at 5,600 Mt.

A. Identified Copper Resources Western Europe, 4%

B. Undiscovered Copper Resources

Africa and the Middle East, 8%

Eastern Europe and Southwestern Asia, 6% Australia, 1%

Eastern Europe and Southwestern Asia, 7%

Africa and the Western Europe, Middle East, 5% 3% South America, 21%

Australia, 1% South America, 39%

Southeast Asia Archipelagos, 9%

Southeast Asia Archipelagos, 6%

Central America and the Caribbean, 5%

South Central Asia and Indochina, 3%

South Central Asia and Indochina, 15%

North Central Asia, 8% Northeast Asia, 0% >1% North America, 23%

Central America and the Caribbean, 2%

North America, 13%

North Central Asia, 14%

Northeast Asia, 7%

1/ Undiscovered Copper Resources ‐ A Global Assessment, April 2014, Presentation at ICSG meeting, Lisbon, by Mrs Jane Mrs Jane M. Hammarstrom (USGS Global Mineral Resource Assessment Team) Assessment Team) 2/ Supporting 2/ Supporting studies, including documentation of the of the assessment methodology and descriptions of individual of individual tracts, are available on the USGS Mineral Resources Program Web site, at http://minerals.usgs.gov/global/ .


8

The World Copper Factbook 2017 The output of electro‐refining is refined copper cathodes, assaying over

Chapter 3: Copper Production

99.99% of copper. of copper.

How is Copper Produced?

Alternatively, in the hydrometallurgical route, copper is extracted from

Geologists look for signs and/or anomalies that would indicate the presence of a mineral deposit. Under the right geological, economic, environmental and legal conditions, mining can proceed. Primary copper production starts with the extraction of copper‐bearing ores. There are three basic ways of copper mining: surface, underground mining and leaching. Open‐pit mining is the predominant mining method in the world. After the ore has been mined, it is crushed and ground followed by a

mainly low grade oxide ores and also some sulphide ores, through leaching (solvent extraction) and electrowinning (SX‐EW process). The output is the same as through the electro‐refining route ‐ refined copper cathodes. ICSG estimates that in 2016, refined copper production from SX‐EW represented 16% of total of total copper refined production. Refined copper production derived from mine production (either from metallurgical treatment of concentrates or SX‐EW) is referred to as “primary copper production”, as obtainable from a primary raw material source. However, there is another important source of raw material

concentration by flotation. The obtained copper concentrates typically

which is scrap. Copper scrap derives from either metals discarded in semis

contain around 30% of copper, but grades can range from 20 to 40 per

fabrication or finished product manufacturing processes (“new scrap”) or

cent. In the following smelting process, sometimes preceded by a roasting

obsolete end‐of ‐life products (“old scrap”). Refined copper production

step, copper is transformed into a “matte” containing 50‐70% copper. The

attributable to recycled scrap feed is classified as “secondary copper

molten matte is processed in a converter resulting in a so‐called blister

production”. Secondary producers use processes similar to those

copper of 98.5‐99.5% copper content. In the next step, the blister copper

employed for primary production. ICSG estimates that in 2016, at the

is fire refined in the traditional process route, or, increasingly, re‐melted

refinery level, secondary copper refined production reached 17% of total

and cast into anodes for electro‐refining.

copper refined production.


10


Copper Mine Production World Copper Mine Prod Produc uc tio n, 1900 1900-2 -2016 016 (thousand (thousan d metric metric tonn es copper) Source: ICSG 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 1900

1910

1920

1930

1940

1950

Concentrates

1960

1970

1980

1990

2000

2010

SX-EW

Since 1900, when world production was less than 500 thousand tonnes copper, world copper mine production has grown by 3.2% per annum to 20.2 million tonnes in 2016. SX‐EW production, virtually non‐existent before the 1960s, increased to 3.9 million tonnes in 2016.


11


Copper Mine Production by Region, 1960 versus 2016 Thousand metric tonnes copper Source: ICSG

1960 19%

2016

3%

5%

Oceania

9%

Africa

25% 12%

41%

6%

Europe North America

15%

11% 36%

18%

Asia Latin America

From less than 750,000 tonnes copper in 1960, copper mine production in Latin America has increased to 8.3 million tonnes in 2016, representing 41% of of the the global total. Asia has also exhibited significant growth. The region’s share of of global global production has increased from from just just 6% to 18% over the respective period. Conversely, North America’s share declined from 36% to 15%.


12


Cop per Min e Prod Prod uctio uct io n by Cou ntry: nt ry: Top Top 20 Coun trie tri es in 2016 (Tho (Tho us and metric ton nes) Sou rce: ICSG ICSG Chile Peru China United States States Aust Au st ralia ral ia Congo Zambia Mexico Indonesia Canada russian fed. Kazakhstan Poland Mongolia Brazil Iran Laos Spain Bulgaria Turkey 0

1,000

2,000

3,000

4,000

5,000

6,000

Chile accounted for almost one‐third of of world world copper mine production in 2016 with mine output of of 5.55 5.55 million tonnes copper.


13


Trends in Copper Mining Capacity, 2000‐2020 Thousand metric tonnes (Bars) and Annual percentage change (Line) Source: ICSG Directory of Copper of Copper Mines and Plants – Plants – July 2017

8.0%

Concentrates

7.0% 6.0% 5.0%

h t w o4.0% r g %

3.0%

2006‐ 2011: +2.0%

2000‐2005: +3.1%

2012‐ 2016: +4.8%

2017‐ 2020: +2.9%

2.0% 1.0% 0.0% 2000

2004

2008

2012

2016

2020

24,000

8.0%

21,000

7.0%

T h o 18,000 u s a n 15,000 d m e t r 12,000 i c t o n n 9,000 e s c o 6,000 p p e r

6,000

SX‐EW

5,000 T h

6.0% 4,000

5.0%

2000‐2005: +3.7%

h t w o4.0% r g %

3,000 2006‐2011: +6.0%

3.0% 2.0%

3,000

1.0%

‐

0.0%

2,000 2012‐ 2016: +1.3%

1,000

o u s a n d m e t r i c t o n n e s c o p p e r

2017‐2020: +1.2%

‐ 2000

2004

2008

2012

2016

2020

Copper mining capacity is estimated to reach 25.9 million tonnes copper in 2020, with 19% being SX‐EW production. This will be 10% higher than global capacity of of 23.5 23.5 million tonnes copper recorded in 2016. Growth in copper mine capacity is expected to average 2.5% per year going forward as new capacity is added at existing and some new operations. The ratio between production and capacity is called the capacity utilization rate. The world mine capacity utilization rate was around 86% in 2016.

Note: Capacity data Capacity data reflects production reflects production capabilities not necessarily not necessarily production forecasts production forecasts


14


Top 20 Copper Mines by Constraints Capacity (basis on2017) Copper Supply Thousand metric tonnes copper Source: ICSG Directory of Copper of Copper Mines and Plants – Plants – July 2017 R an k

Min e

Co u n tr y

Ow n er (s )

1

Es c ondida

Chile

BHP Billit on (57. 5%), Rio Tint o Corp. (30%), Japan Es condida (12. 5%)

2

Gras berg

Indonesia

P. T. Freeport Indonesia Co. (PT-FI), Rio Tint o

3

Morenc i

United S t ates

4

Buenavista del Cobre (former Cananea)

5 6

So u r c e

C a p ac i t y

Concs & SX-EW

1, 270

Conc entrat es

750

Freeport -McMoRan Inc 72%, 28% affiliat es of Sumitomo Corporat ion

Concs & S X-EW

520

Mexic o

Grupo Mexic o

Concs & S X-EW

510

Cerro Verde II (Sulphide)

Peru

Freeport-McMoRan Copper & Gold Inc. 54%, Compañia de Minas Buenaventura 19.58%, Sumitomo 21%

Conc entrat es

500

Collahuas i

Chile

Anglo American (44%), Glenc ore plc (44%), Mit s ui (8. 4%), JX Holdings (3. 6%)

Conc s & SX-E W

454

Conc entrat es

450

Conc entrat es

450

Conc entrat es

450

BHP Billiton (33.75%), (33.75%), Teck (22.5%), Glencore plc (33.75%), Mits ubishi Corp. Corp. (10%) MMG (62.5%), Guoxin International Investment Corporation Limited (22.5%), CITIC Metal Co., Ltd. (15%)

7

Ant amina

Peru

7

Las Bambas

Peru

7

Polar Division (Norilsk/ Talnakh Russia Mills)

Norilsk Nic k el

10

El Tenient e

Chile

Codelc o

Conc s & S X-EW

432

11

Los Bronc es

Chile

Anglo Amercian 50. 1% , Mit subis hi Corp. 20. 4%, Codelc o 20%, Mit s ui 9. 5%

Concs & SX-EW

410

12

Los Pelambres

Chile

Ant ofagas t a P lc (60%), Nippon Mining (25%), Mit s ubis hi Materials (15% )

Conc ent rat es

400

13

Chuquicamata

Chile

Codelc o

Conc s & S X-EW

350

14

Radomiro Tomic

Chile

Codelc o

Conc s & S X-EW

330

15

Sent inel

Zambia

Firs t Quantum Minerals Lt d

Conc entrat es

300

16

Bingham Cany on

United S t ates

Kennec ot t

Conc entrat es

280

17

Kans ans hi

Zambia

Firs t Quantum Minerals Lt d (80%), ZCCM (20%)

Conc s & S X-EW

270

18

Toromoc ho

Peru

Chinalco

Conc entrat es

250

19

Oly mpic Dam

Aust ralia

BHP Billiton

Concs & S X-EW

225

20

Mut anda

Congo

Glenc ore Plc

SX-EW

220



15


Constraints on Copper Supply

 

With copper concentrate in strong demand, there has been growing interest in understanding the obstacles that can prevent copper mine supply from coming on‐stream. Below are some of the operational and financial

 

constraints identified from the study. For more information about ICSG research related to constraints on copper supply, please contact the ICSG Secretariat at [email protected]  

 

 

 

 

 

Declining ore grades: a serious issue in developed copper areas such as the USA and Chile Project finance: prolonged economic and price volatility may have significant impact on cost of capital of capital Tax & investment regimes: recent research indicates these are less important than geological endowments Other cost issues: lower capital expenditure may have adverse long term effect on copper supply; operating cost escalation

   

 

 

Water supply: a critical issue in dry mining districts

 

Energy: coal is the fuel chosen to power main copper mines and processes… climate change may increase costs

 


Other environmental issues: governments are becoming more aware of the impact of mining to the surrounding environment in recent years. In countries like Peru and the Philippines, the relationship with indigenous community is also a key factor. Resource nationalism: It has become a priority for certain governments to develop their mineral resources that have not been exploited until now. While willing to develop their natural resources, countries might be seeking to extract strong revenue flows from them. It will be important to balance royalty/taxation levels with the need to encourage capital investment to develop their rising industries. Sulphuric acid supply and price: 16% cost factor for SX‐EW projects Skilled labor: open labor markets would help address this constraint Labor strikes: tend to increase when refined prices are high and GDP is growing faster, but tend to be longer and less frequent otherwise High domestic costs if there if there is “Dutch disease” (resulting in higher exchange rates due in part to strong exports) Rate between imported inputs and domestic input costs affected by the currency strength of the of the producer Political risks: Security and transport accessibility is crucial to mine operation

16


Copper Smelter Production World Cop per Smelter Prod Prod uc tion , 19801980-2016 2016 Tho usand metric metric tonnes co pper Sour ce: ICSG ICSG 20,000 17,500 15,000 12,500 10,000 7,500 5,000 2,500 0

1980

1985

1990

1995

Pr im im ar y Feed

2000

2005

2010

2015

Seco n d ar y Feed

Smelting is the pyrometallurgical process used to produce copper metal. In 2016, world copper smelter production reached 19.0 million tonnes copper. Recently, the trend to recover copper directly from ores through leaching processes has been on the increase. Primary smelters use mine concentrates as their main source of of feed feed (although some use copper scrap as well). Secondary copper smelters use copper scrap as their feed.


17


Trends in Copper Smelting Capacity, 2000 and 2020 Percentage share of total of total capacity, by technology type Source: ICSG Directory of Copper of Copper Mines and Plants – Plants – July 2017

2000

2020

6.4% 0.5%

5% 8%

14.8%

0% 1%

12%

19.6% 58.7% 74% Flash/C ont in uous Modified Reverb /Convert Low Grade EW

Reverb/Blast/Rotary Electric Un kown

The use of of Flash/Continuous Flash/Continuous technology accounted for 59% in total copper smelting capacity in 2000. This share rose to 73% in 2016. It is expected to remain around this level until 2020. Note: Capacity data Capacity data reflects production reflects production capabilities not necessarily not necessarily production forecasts production forecasts


18


Copper Cop per Smelter Prod Prod uc tion tio n b y Regio Regio n, 1990 1990--201 2016 Thou sand sand metr metr ic tonnes Source: Sour ce: ICSG ICSG

12,000 10,000 8,000 6,000 4,000 2,000

0 1990 1992 1994 1996 1999 2001 2003 2005 2007 2009 2011 2013 2015 Africa

America

Asia

Eu r o p e

Oceania

Asia’s share of of world world copper smelter output output jumped jumped from 27% in 1990 to almost 60% in 2016 as smelter production in China expanded rapidly.


19


Copper Smelter Production by Country: Top 20 Countries in 2016 Thousand metric tonnes Source: ICSG China Japan Chile Russ ian Fed. Fed. India Zambia Ko rean rean Rep. United States Poland Germany Au s trali tr alia a Canada Bulgaria Peru Spain Kazakhstan Mexico Indonesia Iran Brazil

0

1 ,0 0 0

2 ,0 0 0

3 ,0 0 0

4 ,0 0 0

5 ,0 0 0

6 ,0 0 0

7 ,0 0 0

8 ,0 0 0

In 2016, China accounted for over a third of of world world copper smelter production, followed by Japan and Chile with 8% share each and Russian Federation (5%). Note: Capacity data Capacity data reflects production reflects production capabilities not necessarily not necessarily production forecasts production forecasts


20


Top 20 Copper Smelters by Capacity (basis 2017) Thousand metric tonnes copper Source: ICSG Directory of Copper of Copper Mines and Plants – Plants – July 2017

Ran k

Sm el t er

Co u n t r y

Op er at o r /Ow n er (s )

Pr o c es s

Cap ac i t y

1

Guixi (smelter)

China

Jiangxi Copper Corp.

2

Birla Copper (Dahej)

I ndia

Birla Group (Hidalc o)

3

Chuquic amata (smelter)

Chile

3

Hamburg

Germany

3

Bess hi/ Ehime (Toyo)

3

Saganoseki/ Ooita (s melter)

7

El Teniente (Caletones)

Chile

Codelco Chile

Reverberatory/ Teniente Conv.

40 0

7

China

Jinchuan No n- Ferrous Metal Co.

Reverberatory/ Kaldo Conv.

400

China

Jinchuan Non-Ferrous Metal Co.

Flas h s me lter

4 00

7

Jinchuan (smelter) Jinchuan (Fangchenggang smelter) Jinguan (smelter)

Tongling Non-Ferrous Metals Group

Flas h Smelter

40 0

7

Xiangguang copper (smelter) China

Yangg u Xiangguang Co pper Co

Outokumpu Flash

40 0

7

Sterlite Smelter (Tuticorin)

I ndia

Vedanta

I sas melt Process

4 00

7

Norilsk (Nikelevy, Medny)

Russia

Norilsk Nic kel

Reverb, Elec tric, Vanyukov

40 0

14

Pirdop (smelter)

Bulgaria

Aurubis (99.77%)

Outokumpu Flash

36 0

14

Ilo Smelter

Peru

I sas melt Process

3 60

16

Onahama/ Fukushima

J apan

Mitsubishi/ Reverb.

3 54

17

Jinlong (Tongdu)

China

Flas h Smelter

3 50

17

Yunnan

China

Southern Copper Corp. (Grupo Mexico 75 .1%) Mitsubishi Materials Corp. (49.29%), Dowa Metals & Mining Co. Ltd.(31.15 %), Furukawa Furukawa Metals Metals & Re sources Co. Ltd. (12.67%) Tongling Nonferrous Metals Corp. (57.4%), Sumitomo (35%), Pingguo Aluminium Co. Yunnan Copper Industry Group (Local Government)

I sas melt Process

3 50

17

Kansans hi (s melter)

Zambia

First Quantum Minerals Ltd

I s asmelt Proc ess

350

20

Naos hima/ Kagawa (smelter) Japan

Mitsubishi Materials Corp.

Mitsubishi Continuous

342

7

C o d e lc o

Outokumpu Flash Outokumpu Flash, Ausmelt, Mitsubishi Continuous Outokumpu/ Teniente Converter

450

Aurubis

Outokumpu, Contimelt, Electric

4 50

Japan

Sumitomo Metal Mining Co. Ltd.

Outokumpu Flash

450

Japan

Pan Pac if ic Copper Co. Ltd

Outokumpu Flash

450

China

90 0 500



21


Refined Copper Production World Refined Copper Production, 1960‐2016 Thousand metric tonnes Source: ICSG 25,000

20,000

15,000

10,000

5,000

0 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 Refinery Refinery Primary

Refinery Refinery Secon dary

Refinery SX-EW SX-EW

With the emergence of of solvent solvent extraction‐electrowinning (SX‐EW) technology, refined copper produced from leaching ores has increased from less than 1% of of world world refined copper production in the late 1960’s to 16% of of world world output in 2016.


22


Trends in Refined Capacity, 2000-2020 Thousand metric metric ton nes copp er Source: ICS ICSG G Directory Directory of Copp er Mines Mines and Plants - July 2017 35,000

30,000

25,000

20,000

15,000

10,000

5,000

2000

2002

2004

2006

El ec t r o l yt i c

2008

2010

2012

El ect r o w i n n i n g

2014

2016

2018

2020

Fi r e Ref i n i n g

This chart shows world copper refinery capacity by refining process. The ratio between production and capacity is called the capacity utilization rate. The world refinery capacity utilization rate was around 86% in 2016. Note: Capacity data Capacity data reflects production reflects production capabilities not necessarily not necessarily production forecasts production forecasts


23


Refined Cop per Prod uctio n by b y Regio Regio n, 1990 1990--2016 2016 Thousand metric tonn es Source: Sour ce: ICSG ICSG

25,000

20,000

15,000

10,000

5,000

0 1990 1992 1994 1996 1999 2001 2003 2005 2007 2009 2011 2013 2015

Africa

America

Asia

Europe

Oceania

Regions with the highest output of of refined refined copper in 1990: the Americas (4,250 kt), followed by Europe (3,004 kt) Leading region in the world in 2016: Asia (12,677 kt) as compared to 2,505kt in 1990.


24


Refined Copper Production by Country: Top 20 Countries in 2016 Thousand metric tonnes Source: ICSG China Chile Japan United States Russ ian Fed. Fed. India Congo Germany Korean Rep. Poland Aust Au st ralia ral ia Mexico Spain Zambia Belgium Peru Kazakhstan Canada Indonesia Brazil 0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

In 2016, China accounted for over a third of of world world copper refined production, followed by Chile (11%), Japan (7%) and the United States (5%).


25


Top 20 Copper Refineries by Capacity (basis 2017) Thousand metric tonnes copper Source: ICSG Directory of Copper of Copper Mines and Plants – Plants – July 2017

Ran k

Pr o c e s s

Ca p ac i t y

1

Guixi

C hina

Ji angxi C opper Corporation

Electrolyti c

900

2

Jinchuan

C hina

Ji nchuan Non Ferrous Co.

Electrolyti c

650

3

Daye/ Hubei (refi nery)

C hina

D aye Non-Ferrous Metals C o.

Electrolyti c

600

4

Bi rla

India

Bi rla Group (Hidalco)

Electrolyti c

50 0

4

Yunnan C opper

C hina

Yunnan C opper Industry Group (64.8%)

Electrolytic

5 00

6

Pyshma Refinery

Russi a

UMMC (Urals Mini ng & Metallurgi cal C o.)

Electrolyti c

460

7

Amarillo

United States

Grupo Mexi co

Electrolyti c

45 0

7

Chuquicamata Refinery

C hile

C odelco

Electrolyti c

450

7

Toyo/Ni i hama (Besshi)

Japan

Sumi tomo Metal Mi ni ng C o. Ltd.

Electrolyti c

450

10

Onsan Refinery I

Korean Republic LS-Nikko C o. (LS, Ni ppon Mi ning)

Electrolyti c

440

11

Hamburg (refinery)

Germany

Aurubis

Electrolyti c

41 6

12

El Paso (refinery)

United States

Freeport-McMoRan Copper & Gold Inc.

Electrolyti c

415

13

Las Ventanas

C hile

C odelco

Electrolyti c

41 0

14

Jinchuan (Fangchenggang

C hina

Ji nchuan Non-Ferrous Metal C o.

Electrolyti c

40 0

14

Jinguan (refinery)

C hina

Tongli ng Non-Ferrous Metals Group

Electrolyti c

400

Jinl inlong (Tongdu) du) (refine inery)

Chin China a

Electrolytic

400

14

Shandong Fangyuan

C hina

Tonglin gling g NonFerr errous Metal Cor Corp. 52 %, Shar Sharp pline ine International 13%, Sumitomo Corp. 7.5%, Itochu Corp. 7.5% D ongyi ng, Shandong

Electrolyti c

40 0

14

Sterli te Refi nery

India

Vedanta

Electrolyti c

40 0

14

Xi angguang C opper

C hina

Yanggu Xi angguang C opper Co

Electrolyti c

400

20

CC R Refi nery (Montreal)

C anada

Glencore plc

Electrolyti c

370

14

Ref i n er y

Co u n t r y

Ow n er (s )



26


World Copper and Copper Alloy Semis Production World Copper and Copper Alloy Semis Production Production,, 1980‐2016P Thousand metric tonnes Source: ICSG 33,000 30,000 27,000 24,000 21,000 18,000 15,000 12,000 9,000 6,000 3,000 0 1980

1985

1990

1995

2000

2005

2010

2015

Semis fabricators process refinery shapes such as cathodes, wire bar, ingot, billet slab and cake into semi‐finished copper and copper alloy products using both unwrought copper materials and direct melt scrap as raw material feed. Semis fabricators are considered to be the “first users” of of refined refined copper and include wire rod plants and brass mills. P / Preliminary. For some countries still incomplete


27


Copper and Copper Alloy Semis Production by Region, 1980 & 2016P Thousand metric tonnes Source: ICSG 25,000 1980

2016

20,000

15,000

10,000

5,000

0 Af ri ca

As ia

Eur op e

Nor th A mer ic a

Ocean ia

Sou th A mer ic a

Asia accounted for 81% (or almost 24.1 million metric tonnes) of of semis semis output in 2016, compared to 23% in 1980. P / Preliminary. For some countries still incomplete


28


Copper & Copper Alloy Semis Production Capacity by Region & Product Source: ICSG Directory of Copper of Copper and Copper Alloy Fabricators 2017 Semis Semis Productio n Capacity Capacity by Prod uct, 2016 2016 vs 2017 2017 (million ton nes gro ss w eight) Sour ce: ICSG ICSG

Semis Production Capacity by Region, 2017 (%) Source: ICSG Other Africa 1%

60

Asia (ex. China) & Oceania 20%

50 40 China 40%

30

Middle East & North Africa 5%

20 10

Americas 14%

-

Eastern Europe & Central Asia 6%

Western Europe 14%

20 16 Wi r e Ro d Tu b es Fo i l

20 1 7 PSS Al l o y Wi r e Po w d er

RBS In g o ts No t Cl as s i fi ed

In 2017, China will account for the largest share of

Wire rod plants are estimated to account for 61% of

world semis production capacity (40%) and the largest

world first use capacity in 2017, or 34.9 million tonnes.

number of of semis semis plants (559). Note: Capacity data Capacity data reflects production reflects production capabilities not necessarily not necessarily production forecasts production forecasts


29


Copper and Copper Alloy Semis Production Capacity by Country: Top 20 Countries, 2017 Thousand metric tonnes Source: ICSG Directory of Copper and Copper Alloy Fabricators 2017

China USA Germany Japan Ko rean Rep. Rep. Italy Brazil India Taiwan Russian Fed. Turkey Mexico Iran Thailand Vietnam Spain France Indonesia UA E Ukraine

0

4,000

8,000

12,000

16,000

20,000

24,000



30


Chapter 4: Copper Trade Copper products across the value chain are traded internationally. Often,

World Copp er Impo Impo rts by Produc t Category, Category, 2016 2016 /2 /2 Thousand metric metric ton nes c opper (unless o therwise noted) Source: ICSG ICSG

countries where upstream copper production capacity exceeds downstream production capacity will import the raw materials needed to meet their

Concentrates

production needs, and vice versa. Major product categories of copper of copper traded Blister & Anode

internationally include:  

Copper concentrates

 

Copper blister and anode

 

Copper cathode and ingots

 

Copper scrap and

 

Copper semis

Refined Copper Copp er Scrap /1 /1 Copper & Copper Allo y Semis /1 0

Copper powders and compounds are also traded globally, but typically in much smaller quantities. In additional, copper is contained in end‐use products that are traded globally including automobiles, appliances, electronic equipment and other products. Changes in trade regulations, such

2,000

4,000

6,000

8,000

10,000

12,000

World Copp er Exp Exp orts b y Produ ct Category, 2016 /2 Thousand metric tonnes c opp er (unless (unless otherwise noted) Sourc e: ICSG ICSG

as import duties or export quotas, can have significant impacts on the international trade of copper. For more information about the international

Concentrates

trade of copper and changes in regulations that can affect the trade of 1

copper, please contact the ICSG Secretariat at [email protected]

Blister & Anode

Refined Refined Copper

Copp er Scrap /1 /1 1

Gross metal weight. Exports and Imports might not match due to transit time, under-reporting or product misclassification

2


Copper & Copper Allo y Semi s /1 0

2,000

4,000

6,000

8,000

10,000

12,000

31


Major International International Trade Tra de Flows FFlows lows ofofCopper Ores and Concentrates Concentrates Major Trade CopperOres 1 Ores Ore s and Concentrates Conc entrates Major Exporters of

Major Importers of

Copper Ores and

Copper Ores and

Concentrates, 2016

Concentrates, 2016

1. Chile

1. China

2. Peru

2. Japan

3. Indonesia

3. Spain

4. Australia

4. Korean Rep.

5. Canada

5. Germany

6. Mexico

6. India

7. Mongolia

7. Philippines

8. Brazil

8. Bulgaria

9. United States

9. Brazil

10. Spain

10. Russian Fed.

Image courtesy of the of the Copper Development Association.

1

Figure is intended to illustrate trade flows but not actual trade routes. Detailed trade matrices are available in ICSG Statistical Yearbook.


32


Major International Trade of Copper Blister 1 Major Ma jor International Int ernational Trade Flow Trade Flows s of Copper Copp er Blister Blis ter and and An Anode ode 1 and Anode Anod e Major Exporters of

Major Importers of

Copper Blister and

Copper Blister and

Anode, 2016

Anode, 2016

1. Chile

1. China

2. Bulgaria

2. Belgium

3. Namibia

3. India

4. Spain

4. Korean Rep.

5. Belgium

5. Germany

6. South Africa

6. Austria

7. Armenia

7. Canada

8. Finland

8. Australia

9. United States

9. Sweden

10. Italy

10. Brazil


1

Figure is intended to illustrate trade flows but not actual trade routes. Detailed trade matrices are available i n ICSG Statistical Yearbook.


33


Major International Trade Flows of Refined 1 Major Ma jor International Trade F Flow lows s of o f Refined Copper 1 Copper Major Exporters of

Major Importers of

Refined Copper,

Refined Copper,

2016

2016

1. Chile

1. China

2. Japan

2. Germany

3. Russian Fed.

3. United States

4. Australia

4. Italy

5. Zambia

5. Taiwan

6. China

6. Korean Rep.

7. Kazakhstan

7. Turkey

8. Netherlands

8. Thailand

9. India

9. Malaysia

10. Peru

10. United Arab Emirates


1

Figure is intended to illustrate trade flows but not actual trade routes. Detailed trade matrices are available i n ICSG Statistical Yearbook.


34


Leading Exporters and Importers of Semi of Semi‐Fabricated Copper Products, 2016 Thousand metric tonnes, Source: ICSG 700

Importers

600 500 400 300 200 100 0

1,200

Exporters

1,000 800 600 400 200 0


35


The Global Copper Market and the

Exchanges also provide for the trading of futures and options contracts.

Commodity “Copper”

providing a hedge against price variations. In this process the participation

These allow producers and consumers to fix a price in the future, thus of speculators, who are ready to buy the risk of price variation in

Copper, as any other good or merchandise, is traded between producers

exchange for monetary reward, gives liquidity to the market. A futures or

and consumers. Producers sell their present or future production to

options contract defines the quality of the product, the size of the lot,

clients, who transform the metal into shapes or alloys, so that

delivery dates, delivery warehouses and other aspects related to the

downstream fabricators can transform these into different end‐use

trading process. Contracts are unique for each exchange. The existence of

products. One of the of the most important factors in trading a commodity such

futures contracts also allows producers and their clients to agree on

as copper is the settlement price for the present day (spot price) or for

different price settling schemes to accommodate different interests.

future days.

Exchanges

Exchanges also provide for warehousing facilities that enable market participants to make or take physical delivery of copper in accordance with each exchange's criteria.

The role of a commodity exchange is to facilitate and make transparent Average Annual Copper Prices (LME, Grade A, Cash), 1960‐2016

the process of settling prices. Three commodity exchanges provide the facilities to trade copper: The London Metal Exchange (LME), the Commodity Exchange Division of the New York Mercantile Exchange

US$ per tonne Source: ICSG

10,000 9,000

(COMEX/NYMEX) and the Shanghai Futures Exchange (SHFE). In these

8,000

exchanges, prices are settled by bid and offer, reflecting the market's

7,000

perception of supply of supply and demand of a commodity on a particular day. On

6,000

the LME, copper is traded in 25 tonne lots and quoted in US dollars per

5,000 4,000

tonne; on COMEX, copper is traded in lots of 25,000 pounds and quoted

3,000

in US cents per pound; and on the SHFE, copper is traded in lots of 5

2,000

tonnes and quoted in Renminbi per tonne. More recently, mini contracts

1,000

of smaller of smaller lots sizes have been introduced at the exchanges.

0

1 9 60

1 96 5

19 7 0

1 97 5

1 9 80

1 98 5

Cu r re re nt nt $


19 90

1 99 5

2 00 0

20 0 5

2 010

2 01 5

Co n st st an an t 200 9 $

36


Copper Stocks, Prices and Usage (Jan 2001‐Jun 2017) Thousand metric tonnes and US cents/pound Source: ICSG 3,375

450

3,000

400

2,625

350

r 2,250 e p p o c , s e 1,875 n n o t c i r t e 1,500 m d n a s u o 1,125 h T

300

750

100

375

50

250

200

150

0

) d n u o p / s t n e c S U ( E M L e c i r P

0 Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

Ex chang es

Pro d ucers


Merc hants

Co nsumers

3 mt h mo ving av av erag e co co p p er usag e seas o nally ad ad just ed

Price LME (U (USc ent s/ p o und )

37


Chapter 5: Copper Usage How Is Copper Used? Copper is shipped to fabricators mainly as cathode, wire rod, billet, cake (slab) or ingot. Through extrusion, drawing, rolling, forging, melting, electrolysis or atomization, fabricators form wire, rod, tube, sheet, plate, strip, castings, powder and other shapes. The fabricators of these of these shapes are called the first users of copper. of copper. The total use of copper of copper includes copper scrap that is directly melted by the first users of copper to produce copper semis. Copper and copper alloy semis can be further transformed by downstream industries for use in end use products such as automobiles, appliances, electronics, and a whole range of other copper‐dependent products in order to meet society’s needs. This section provides a range of information of information about refined copper usage, total use, major uses of copper of copper and end‐use. For the most up‐to‐date information on refined copper usage, please visit the ICSG website at www.icsg.org


38


World Refined Copper Usage, 1900‐2016 26,000

Thousand metric tonnes Source: ICSG

24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

Since 1900, apparent usage for refined copper has increased from less than 500 thousand tonnes to 23.5 million metric tonnes in 2016 as usage over the period grew by a compound annual growth rate of of 3.4% 3.4% per year.


39


Refined Copper Usage by Region, 1960 versus 2016 Thousand metric tonnes copper Source: ICSG

1960

2016 0.04%

2% 2%

10%

Europe Africa

18% 18 % 1%

30% 30 %

Asia Latin America

57%

1% 10%

69% 69 %

North America Oceania

0.5%

The key driver of of global global refined copper usage has been Asia, where demand has expanded almost eight‐fold over the past four decades.


40


World Refined Copper Usage* per Capita: 1950‐2016 Sources: ICSG and US Census Bureau

8

3.5

7

3.0

6 ) n l b ( n o i t a l u p o P

2.5

5 2.0 4 1.5 3

k g p e r p e r s o n

1.0

2

0.5

1

0 0.0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 World Pop Popula ulation tion

Ref efine ined d Co Coppe pperr Usa sage ge pe perr Capita

*Refined copper is typically used by semis fabricators or the “first users” of of refined refined copper, including ingot makers, master alloy plants, wire rod plants, brass mills, alloy wire mills, foundries and foil mills. As a result, per capita usage of of refined refined copper refers to the amount of of copper copper used by industry divided by the total population and does not represent copper used in finished products per person.


41


Intensity of Refined of Refined Copper Usage* Sources: ICSG and International Monetary Fund 2016 data Aust ral ia Belgium Brazil Canada Chile China Egypt France Germany India Indonesia Iran Italy Japan Korean Rep. Malaysia Mexico Poland Russian Fed. Saudi Arabia Spain Sweden Taiwan Thailand Turkey United Arab Emirates United States Vietnam Zambia

GDP per capita capita (US$ (US$)) Intensity ntensity (tonnes/U (tonnes/US$bl S$bln) n) 51850 7.943 41284 535.478 8727 162.663 42210 103.131 13576 339.237 8113 1,040.814 3685 349.049 38127 74.689 41902 359.197 1723 209.351 3604 232.763 4683 347.706 30507 291.751 38917 196.955 27539 517.273 9360 786.232 8555 350.863 12316 631.402 8929 245.186 20150 286.622 26609 292.069 51165 264.057 22453 935.665 5899 820.742 10743 571.572 37678 1,101.262 57436 97.578 2173 1,072.887 1275 1,454.716

Intensity of Copper Usage 2016 1,400 ) 1,200 n l b $ S U1,000 / s e n n o t ( 800 P D G r e 600 p e g a s u 400 r e p p o C 200

United Arab Embirates Vietnam China Taiwan Thailand Malaysia Poland Turkey

Egypt Iran

Mexico

Indonesia Russia India Brazil

Germany

Chile

Belgium

Korean Rep.

Spain Italy Saudi Arabia

Sweden Japan France

United States

Canada

Australia

0 0

10,000

20,000

30,000

40,000

50,000

60,000

GDP per capita (US$)

*Refined copper is typically used by semis fabricators or the “first users” of of refined refined copper, including ingot makers, master alloy plants, wire rod plants, brass mills, alloy wire mills, foundries and foil mills. As a result, intensity of of refined refined copper usage per GDP refers to the amount of of copper copper used by industry divided by GDP and does not represent copper used in finished products per person.


42


Total Copper Usage, Including Direct Melted Copper Scrap, 2005‐2015 Thousand metric tonnes copper Source: ICSG Recyclables Survey April 2017*

30,000 Di r ec t m elt sc sc r ap

Ref in ed u s ag e

25,000 20,000 15,000 10,000 5,000 0 2005

2 00 7

2009

2011

2013

2 01 5

*Copper in scrap direct melt data updated in September 2017


43


sources such as solar, wind, geothermal, fuel cells and other

Major Uses of of Copper: Copper: Electrical Copper

is

the

best

technologies are all heavily reliant on copper due to its excellent

non‐

conductivity.

precious metal conductor of

ICSG, in partnership with the Common Fund for Commodities,

electricity as it encounters much compared

less

the International Copper Association and the International

resistance with

Copper Promotion Council (India), undertook the Transfer of

other

Technology for High Pressure Copper Die Casting in India project.

commonly used metals. It sets

The project facilitated the transfer of technology related to the

the standard to which other

manufacture of rotors, motors and motor systems using more

conductors are compared.

energy efficient high pressure copper die castings.

Copper is also used in power cables, either insulated or uninsulated, for high, medium and low voltage applications. In addition, copper's exceptional strength, ductility and resistance to creeping and corrosion makes it the preferred and safest conductor for commercial and residential building wiring. Copper is an essential component of energy

efficient

generators,

motors,

transformers

and renewable energy


production

systems.

Renewable

energy

Images courtesy of the of the Copper Development Association.

44


Major Uses of of Copper: Copper: Electronics and Communications Copper plays a key role in

Semiconductor

worldwide

and

have launched a revolutionary

technologies.

"copper chip." By using copper

information

communications HDSL

(High

Subscriber

for circuitry in silicon chips,

Line) and ADSL (Asymmetrical

microprocessors are able to

Digital

Line)

operate at higher speeds, using

technology allows for high‐speed

less energy. Copper heat sinks

data

Digital

manufacturers

Subscriber transmission,

internet

service,

including

through

the

existing copper infrastructure of ordinary of ordinary telephone wire.

help remove heat from transistors and keep computer processors operating at peak efficiency. Copper is also used extensively in other electronic equipment in the form of wires, of wires, transformers, connectors and switches.

Copper and copper alloy products are used in domestic subscriber lines, wide and local area networks, mobile phones and personal computers.

Images courtesy of the of the Copper Development Association and European Copper Institute.


45


Major Uses of of Copper: Copper: Construction Copper and brass are the

The

materials

doorknobs and plates

of choice

for

use

of copper

plumbing, taps, valves and

exploits

fittings. Thanks in part to its

biostatic properties to

aesthetic and

its

appeal, alloys,

copper

help prevent the transfer of disease of disease and microbes.

such

as

bronze,

is

Copper roofing, in addition

used in a variety of settings

to being attractive, is well

to build facades, canopies,

known for its resistance to

doors and window frames.

extreme

architectural

Unlike

plastic

tubing,

copper does not burn, melt or release noxious or toxic fumes in the event of a fire. Copper tubes also help protect water systems from potentially lethal bacteria such as legionella. Copper fire sprinkler systems are a valuable safety feature in buildings.

copper's

conditions. buildings,

weather Major

public

commercial

buildings and homes use copper for their rainwater goods and roofing needs. The telltale green patina finish, that gives copper the classic look of warmth and richness, is the result of natural of natural weathering.

Images courtesy of the of the Copper Development Association and the International Copper Association.


46


Major Uses of of Copper: Copper: Transportation All major forms of transportation depend on copper to perform critical functions.

levels of copper. Copper's superior thermal conductivity, strength, corrosion resistance and recyclability make it

Copper‐nickel alloys are used on the hulls of boats and ships to reduce

marine befouling, thereby reducing drag and improving fuel consumption. Automobiles and trucks rely on copper motors, wiring, radiators, connectors,

Electric and hybrid vehicles can contain even higher

brakes and

bearings. Today, the average mid‐size automobile contains about 22.5 kg (50 lbs) of copper, while luxury cars on average contain around 1,500 copper wires

ideal

for

automotive

and

truck

radiators.

New

manufacturing technologies, processes and innovative designs are resulting in lighter, smaller and more efficient radiators. Copper is also used extensively in new generation

airplanes and trains. New high‐speed trains can use anywhere from 2 to 4 tonnes of copper, significantly higher than the 1 to 2 tonnes used in traditional electric trains.

totaling about 1.6 km (1 mile) in length.

Images courtesy of the of the Copper Development Association and the European Copper Institute.


47


Major Uses of of Copper: Copper: Industrial Machinery and Equipment Wherever industrial machinery and equipment is found, it

The corrosion resistant properties of copper and copper

is a safe bet that copper and its alloys are present. Due to

alloys (such as brass, bronze, and copper‐nickel) make

their durability, machinability and ability to be cast with

them especially suitable for use in marine and other

high precision and tolerances, copper alloys are ideal for

demanding environments.

making products such as gears, bearings and turbine blades.

Vessels,

tanks,

and

piping

exposed

to

seawater,

propellers, oil platforms and coastal power stations, all Copper's superior heat transfer capabilities and ability to

depend on copper's corrosion resistance for protection

withstand extreme environments makes it an ideal choice for heat exchange equipment, pressure vessels and vats.

Images courtesy of the of the Copper Development Association.


48


Major Uses of Copper: Consumer and General Products From the beginning of civilization copper has been used

Copper and copper‐based products are used in offices,

by various societies to make coins for currency.

households

and

workplaces.

Computers,

electrical

appliances, cookware, brassware, and locks and keys are Today, countries are replacing

just some of the of the products exploiting copper's advantages.

lower denomination bills with copper‐based coins, as these coins last 10, 20 and even 50 times longer. In the United States, one cent coins and five cent coins contain 2.5% and 75% copper, respectively, while other U.S. coins contain a pure copper 1

core and 75% copper face. In the recently expanded European Union, the Euro coins, first introduced in 2002,

In addition, in areas known to be copper deficient, copper

also contain copper.

is used by farmers to supplement livestock and crop feed.

Images courtesy of the of the International Copper Association and the Copper Development Association. 1

Source: U.S. Department of the Treasury.


49


Major Uses of of Copper: Copper: Usage by Region and End Use Sector, 2016 Source: International Wrought Copper Council (IWCC) and International Copper Association (ICA)

Europe 17%

Industrial 11%

Americas 13% Equipment 31%

ROW 2%

Transport 13%

Infrastructure 16%

Asia 68%


Building Construction 29%

50


Chapter 6: Copper Recycling few

Closing metal loops through increased reuse and recycling

materials that do not degrade or

enhances the overall resource productivity and therefore

lose their chemical or physical

represents one of the key elements of society’s transition

properties

recycling

towards more sustainable production and consumption

process. Considering this, the

patterns. It is widely recognized that recycling is not in

existing copper reservoir in use

opposition to primary metal production, but is a

can

necessary and beneficial complement.

Copper

is

well

among

in

be

the

the

considered

a

legitimate part of world copper reserves. In the recent decades, an increasing emphasis has been placed on the sustainability of material uses in which the concept of reuse and recycling of metals plays an important role in the material choice and acceptance of products. If appropriately managed, recycling has the potential to

In 2015, ICSG estimates that 29% of copper usage came from

recycled

copper.

Some

countries'

copper

requirements greatly depend on recycled copper to meet internal demands. However, recycled copper alone cannot meet society's needs, so we also rely on copper produced from the processing of mineral of mineral ores.

extend the use of resources, and to minimize energy use, some emissions, and waste disposal.

Images courtesy of the of the European Copper Institute.


51


Copp er Recycl Recycl ing Ra Rate te Definit Definit ion ions s The recycling performance of copper-bearing products can be measured and demonstrated in various ways – depending, among other things, on objectives, scope, data availability and target audience. The three International Non-Ferrous Metal Study Groups in conjunction with various metal industry associations agreed on the common definitions of the three following metal recycling rates:  

The The Recycling Input Rate Rate (RIR) measures the proportion of metal and metal products that are produced from scrap and other metal-bearing lowgrade residues. The RIR is mainly a statistical measurement for raw material availability and supply rather than an indicator of recycling efficiency of processes or products. The RIR has been in use in the metals industry for a long time and is widely available from statistical sources. Major target audiences for this type of “metallurgical” indicator are the metal industry, metal traders and resource policy makers. However, given structural and process variables, it may have limited use as a policy tool.


 

 

The The Overall Recycling Efficiency Rate Rate (Overall RER) indicates the efficiency with which end of life (EOL) scrap, new scrap, and other metal-bearing residues are collected and recycled by a network of collectors, processors, and metal recyclers. The key target audiences of this particular indicator are metal industry, scrap processors and scrap generators.

The EOL Recycling Efficiency Rate Rate (EOL RER) indicates the efficiency with which EOL scrap from obsolete products is recycled. This measure focuses on end-of-life management performance of products and provides important information to target audiences such as metal and recycling industries, product designers, life cycle analysts, and environmental policy makers.

52


ICSG IC SG Glo Global bal Copp Copper er Use (incl (in cl.. Recy Recycl clin ing), g), 2010 2010-2 -201 015 5 Source: ICSG Recyclables Survey April 2017*

Global Scrap Use

Global Copper Use

(incl. secondary refined production and scrap direct melt)

(incl. refined usage and scrap direct melt)

('000 t Cu)

('000 t Cu) 9,000 8,000

30,000

RIR % 38%

25,000

36%

20,000

34%

15,000

32%

10,000

30%

5,000

28%

7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 20 10

26%

0

20 11

201 2

Secondary refined pr oduct ion

201 3

201 4

Cu content of Direct Melt

201 5

20 1 0 Refined U sage

2 01 1

2 01 2

2 0 13

Cu content of Direct Me lt

2 0 14

2 01 5

Re cycling Input Rate (RIR)

*Copper in scrap direct melt data updated in September 2017


53


ICSG Global Copper Scrap Research Project and recent scrap reports Based on interest expressed by member countries, ICSG launched the copper scrap market project in 2007 in order to provide greater transparency on an increasingly vital component of the of the world copper market at a time when globalization is reshaping the copper scrap and copper alloy recycling business. The final report of the project was published in August 2010. In addition, ICSG has completed a number of new detailed reports on NAFTA, European, Middle Eastern and Chinese scrap recovery and scrap supply in recent years. For more information about ICSG work related to copper scrap, please contact the ICSG Secretariat at [email protected]

Key Drivers of of the the Global Copper Scrap Market  

Expanding Copper Mine Production and Refined Copper

ICSG Global Copper Scrap Project Reports  

Substitution  

Industrialization and Economic Growth

 

Prices

 

o

Copper Scrap Prices and Spreads

o

Refined Copper Prices and the Demand for Scrap

 

Chinese scrap market developments

 

The Shift in Regional Scrap Processing Capacity

 

Regulations on Recycling and Trade

 

Technology

Manufacture and Use of Semi of Semi‐fabricated copper in Latin America/Canada (2017) Fabrication and Copper Use in Indian Subcontinent, ASEAN and Oceania (2015)

 

Survey of Brass of Brass Mills, Copper Products and Foundries in China (2014)

 

Middle East and North Africa Copper Use Study (2014)

 

Copper and Copper Alloy Scrap Supply Survey in EU‐27 (2013)

 

Copper Scrap Supply Survey in China (2012)

 

Survey on Nonferrous Metal Scrap and Refined Inputs & Production in Chinese Semis Plants (2012)

 


ICSG Global Copper Scrap Research Project Final Report (2010)

54


The Flow of o f Copper Trade

Concentrates/ Matte

Blister/ Anode

Mining

Refined Copper

Production

Wire Wire rod ro d SX/EW Refined Usage Mine

Smelter

Alloy Ingot

Alloy Metals

Fabrication

Wire rod p lant / Wire mill Brass mill

Chemicals

Scrap Recycling

By-products/ slag/ashes

Scrap for Smelting

Semis Sup ply

Refinery Foundry

Tailings

Semis Net Trade

Scrap for Refining

Other Plants

Hydromet. Plant

Direct Melt

incl. incl. low grad e

New Scrap Low Grade Residues

Ingot Maker scrap

alloys

refined


55


The Flow of o f Copper Copp er (cont.) Finished Products

Semis Import

Construction E&E Equ ipment ipment

Finished Products

Copper Reservoir in Use

End -of-Life -of-Life Management

C& D EOL Products

Ind. equip equip ment

INEW IEW

Transport

Abandoned/ Stored/ Reused End-of-Life Products

Cons umer/ Gen. Other Uses

ELV WEEE MSW & Other

Recycling losses new scrap

Low grade from Fabr.

(EOL Management adjust ed for for exp ort/reuse after collection)

EOL Products

Produ ct Use (Lifetime)

Manufacture

Product Supply

Net Trade

Dissipative Uses

Disposal/ Other Uses

Recycling

New Scrap Recycling International Copper Study Group

Old Scrap Scrap & Low grade Net Trade Trad e

Other Metal Loops 56


Industry Global Flows of of Copper Copper (2015) and Derived Recycling Rates Figures produced for the International Copper Association by Fraunhofer ISI based on Environ. Sci. Technol. 47 (12), pp. 6564–6572 (freely available under http://dx.doi.org/10.1021/es400069b).

Recycling indicator


10‐yr avg

Recyclinginput Recycling input rate

35% 35%

EoLrecycling inputrate

21% 21%

EoL collection collection rate

73% 73%

EoLprocessing rate

69% 69%

EoLrec EoLrecyc yclling rate ate

50%

Overall processing rate

79% 79%

Overall recycling efficiency efficiency rate

64% 64%

Old Scrap Ratio

59%

57


ANNEX Worl d Cop World Copper per Produc Prod ucti tion on and Usage, 1 196 9600-20 2016 16 Thousand Metric Tonnes Source: ICSG

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978

Mine Production

Refined Production

Refined Usage

3,924 4,081 4,216 4,286 4,443 4,769 4,987 4,743 5,010 5,682 5,900 5,941 6,541 6,915 7,097 6,735 7,289 7,444 7,306

4,998 5,127 5,296 5,400 5,739 6,059 6,324 6,004 6,653 7,212 7,592 7,404 8,100 8,544 8,759 8,187 8,632 8,884 9,030

4,738 5,050 5,048 5,500 5,995 6,193 6,445 6,195 6,523 7,137 7,291 7,296 7,942 8,740 8,310 7,445 8,539 9,057 9,527


1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

Mine Production

Refined Production

Refined Usage

7,371 7,227 7,721 7,745 7,824 8,135 8,288 8,295 8,620 8,773 9,086 9,227 9,373 9,497 9,571 9,539 10,070 11,084 11,514

9,200 9,261 9,573 9,319 9,541 9,440 9,616 9,920 10,148 10,512 10,908 10,805 10,686 11,042 11,274 11,118 11,817 12,628 13,425

9,848 9,396 9,522 9,090 9,510 9,930 9,798 10,112 10,293 10,668 11,081 10,886 10,563 10,866 10,992 11,560 12,043 12,489 13,082

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016p

Mine Production

Refined Production

12,228 12,767 13,199 13,636 13,487 13,699 14,594 14,927 14,983 15,508 15,537 15,945 15,990 15,964 16,691 18,185 18,431 19,132 20,219

14,032 14,576 14,793 15,638 15,354 15,272 15,918 16,572 17,288 17,895 18,191 18,234 18,981 19,601 20,194 21,060 22,480 22,870 23,304

Refined Usage

13,440 14,223 15,122 14,938 15,133 15,641 16,743 16,558 16,926 18,036 17,888 17,899 19,141 19,713 20,473 21,396 22,880 23,041 23,461 p - preliminary

58

Internatio Interna tional nal Copp Copper er Stud Study y Grou Group p Rua Almirante Barros o 38 – 6th 1000 1000-0 -013 13 Lisb Li sbon, on, Port ugal ug al Tel: +351-21-351-3870 +351-21-351-3870 Fax: +351-21-352-4035 +351-21-352-4035 e-mail: [email protected] Web site: www.icsg.org


59

Copper 2017-10-11 ICSG Factbook 2017

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