Copper scrap is becoming a ‘strategic material’ as shortages loom — UN

A new UN report will be music to the ears of South Africa’s copper cable thieves. 

With shortages looming for the red metal that is crucial to the green energy transition, the UN’s trade and development arm issued a report this week which noted that “copper scrap is fast becoming a strategic material”.

Copper was the magnet for BHP last year when it was rebuffed in its bid to acquire Anglo American, and the metal is certain to trigger similar moves in the mining industry in the coming years. 

“Copper is central to the global transitions toward renewable energy and a digitally connected economy. Its unparalleled conductivity and versatility make it crucial for key industries such as construction, electronics, renewable energy, transportation, and defence,” the report reads.



“As demand rises — projected to increase by over 40% by 2040 — the global copper market faces mounting pressure from supply limitations, geopolitical uncertainties, increasing trade tensions and declining ore grades.”

This emerging copper conundrum reflects a combination of geology and geopolitics.  

More than 50% of the world’s known copper reserves are found in just five countries: Chile, Australia, Peru, DRC and Russia. 

It is worth pointing out on this front that two of the five — DRC and Russia — are basket cases, while Peru has been beset by political instability for the past decade. And political instability raises risks to supplies and the investment needed to get more copper out of the ground. 

Surging demand