Global Climate Goals Require More Copper Mines, Says President Freeport

The world’s climate ambitions will be complicated without increased production of copper, a metal used in wiring, electric vehicles and other electronic gadgets, announced the chief executive of miner Freeport-McMoRan Inc.

The warning comes at a time when world leaders are scheduled to discuss how to mitigate climate change later this month at COP26, even as some communities and environmentalists increasingly oppose the so-called new mines. strategic metals.

“There will come a time when the world will be very short of copper”Freeport CEO told investors, Richard Adkerson, after the company posted better-than-expected quarterly results. “Supply is a real problem for this industry”.

In a first sign of alarm, available copper stocks in the global warehouse system of the London Metal Exchange fell last week to levels not seen in 25 years.

The governments of Chile and Peru – the two largest copper producers in the world – have recently threatened to raise taxes and toughen mining regulations.

The administration of US President Joe Biden on Wednesday took steps to block a Minnesota copper mine from Antofagasta Plc, the latest in a string of mining projects his administration has opposed.

Adkerson, who also chairs a global mining industry lobby group, described the political situation in Washington as “baffling”.

Government officials understand copper’s importance to climate goals, he said Adkerson, but they are not likely to loosen mine clearance rules “because that goes against their policy”.

Meanwhile, copper prices have risen 10% this month due to tight supply, and analysts expect demand to increase along with the global economy.

“The world needs more copper. And yet more copper, until technology breaks through, is going to lead to more carbon emissions.“, ad Adkerson.