By: Nghiinomenwa Erastus
Early this month, Trigon Metals announced their first copper concentrates with copper grades approaching 20% copper and over 600 grams per tonne of silver.
The company noted that the finding was well ahead of expectations at this start-up stage.
Various sources consulted by The Villager place copper-producing companies, including Trigon Metals and Namibia, to benefit from the transitioning of the global economy (decarbonization).
The finding comes when the International Energy Agency (IEA) Sustainable Development Scenario projects that the energy efficiency and renewables account will approximately account for 70% of greenhouse gasses reductions (decarbonization) toward 2050.
With this expected, various sources consulted by Dundee Precious Metal in one of their reports support the growth of copper demand in line with decarbonization efforts.
This growth is due to copper’s important use as a conductive material (among others).
At the same time, meeting the goals of the Paris Agreement requires the substantial deployment of renewable energy technologies, energy efficiency, and electrification of heating, transport and industry.
Depending on the scenario, Dundee MP analysis shows that global renewables capacity is expected to grow 1 to 1,5 times toward 2030 and approximately 2 to 3 fold toward 2040, leading to near-doubling of demand for copper in this sector.
Alternative sources estimate additional growth, including a 10% compound annual growth rate in copper demand due to energy-efficiency retrofits and more than double the increase in demand due to charging infrastructure by 2030 (in addition to additional demand from electric vehicles themselves).
Some sources estimate that primary demand may double overall toward 2050, in line with decarbonization goals.
However, these projections are primarily developed in pre-Covid-19 times – the extent to which they will be realized depends on the future’s strength and shape of global economic recovery.
Another critical uncertainty in future copper upside is the growth in secondary copper supply in-line with circular economy goals.
The European Union’s Green Deal policy outlook emphasizes recycling as part of the EU’s climate and raw materials sufficiency goals; approximately 50% of the EU’s copper demand is already met through recycling. This figure stands at 33% globally, found Dundee Precious Metals.
While future copper recycling may indeed be expected to grow, it should be noted that most global copper stocks are held in high-value durable assets. And that a small share ultimately becomes waste and enters the scrap market.
Given this and the expectation for substantial increases in copper demand going forward, it is unlikely that scrap supply would be able to keep up, thus necessitating primary production to meet the gap in supply.
Trigon Metals, which is reviving the Kombat Copper mine, announced their first copper concentrates produced at the Kombat Mine early this month.
Teams worked through the Christmas period to complete the install of filter presses and run ore through the full production process to achieve this milestone, meeting management’s forecasted goal.
According to the statement posted on their website and the Canadian Stock Exchange, their concentrate produced exceeded the expectations, demonstrating that the combination of new equipment and refurbished equipment from the historic operation are operating well.
The company wrote that the feed material for the initial production was suboptimal lower grade ore. At the same time, grind size, residence times and reagent use are being optimized, but satisfactory copper grades were achieved, approaching 20% copper and over 600 g/t silver.
They added that production continues, building up to first concentrate shipments toward the end of this month, January 2022.
While a declaration of total commercial production is forecast for Mh 2022, as the mine production ramps up and systems are optimized.
Jed Richardson, the chief executive of Trigon, explained that their first product is a milestone for the company, the Kombat community and shareholders.
“Successful concentration of copper represents a major de-risking of the mine,” said Richardson.
He added that a functioning mill is the primary technical hurdle in a mine’s operation. However, when it comes to Kombat, that hurdle has been overcome. Email: erastus@thevillager.com.na
