What Do Copper And Green Energy Have In Common, And How Could That Affect You?

Governments across the globe have agreed to go green to reduce emissions for the planet. 

Green economy conversations often are triggered by discussions about reducing greenhouse gas emissions and halting global climate change.

In a “green economy”, growth in employment and income is additionally helped by public and private investment into economic activities, infrastructure and assets that allow reduced carbon emissions and pollution, according to the United Nations Environment Programme.

Many green technologies used in electric vehicles, wind turbines, solar panels and power transmission rely on metals to operate, and copper will play a key role in reducing emissions according to many industry experts.

Copper seems to be one of a few preferred choices for most green technologies largely because it is a soft, malleable and ductile metal with very high thermal and electrical conductivity. 

Copper's electrical conductivity is crucial for all things electric, especially for capturing, storing and transporting green energy. But there is a problem.

Copper As The New Oil?

Aging copper mine closures and a lack of new copper mine discoveries has resulted in supply issues which are reportedly causing copper shortages. A Bank of America Corp. BAC report warns of supply and demand deficits, predicting prices could hit $20,000 per metric ton by 2025.

The importance of copper electrifying the new green economy is causing some analysts to call it the “new oil,” and projecting a potential spike in the price per metric ton.

But new discoveries and mining of this new oil could be a great opportunity for players like Max Resource Corp. (TSX.V: MAX) MXROF, Ero Copper Corp. ERO and Lundin Mining Corp. LUN.

These companies are expected to ramp up exploration and production of the all-important metal to meet future demand and help advance green technologies.

Is The Copper Market Prepared For This Critical Role?

There are, however, concerns that the copper market may not be prepared to meet the overwhelming demand because of new mining, production and distribution challenges.

Copper is known to be a predominantly long-cycle commodity because it takes two to three years to extend an existing mine and as long as eight years to establish a new greenfield project. These challenges might ultimately call for new mining technology to increase prospects and output.

Recent reports suggest that scientists have developed a new toolkit for discovering mineral deposits crucial to transitioning to a green economy.

Porphyry-type deposits, which historically provide most of the world’s copper and molybdenum as well as large amounts of gold and other metals, are the target of many mining companies that employ a wide range of invasive and expensive exploration techniques to find them.

Historically large sedimentary-hosted copper deposits have been found in three basins located in Siberia, south-central Africa, and northern Europe. However, over the past 24 months early surface exploration of sedimentary basins in Colombia, Ecuador and Peru suggest outcroppings could be the tip of giant sediment-hosted copper-silver deposits lurking underneath. 

Max Resource, a mineral exploration company advancing the newly discovered sedimentary-hosted district-scale CESAR copper-silver project in Colombia, claims its high-grade copper-silver discovery was made by adopting new mining technologies and strategies.

The CESAR project sits along the Colombian portion of the world’s largest copper-producing belt (Andean belt) with world-class infrastructure and the presence of global majors Glencore plc GLEN and Chevron Corp. CVX.

In 2021, Max was granted 100% ownership of 19 mining concessions covering a total area of 186 square kilometers. More recently in 2022 it was granted 11 mining concessions covering an additional 99 square kilometers.

The company reports that it is working closely with Endeavour Silver Corp. EDR EXK exploring the property and providing the necessary financial support to significantly expand its 100%-owned landholdings at CESAR. 

Max says its goal is to create value by advancing the Cesar copper-silver project toward the mining of copper, the key metal for Colombia’s transition to clean energy.

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