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PrivacyAUNewsTopicsInsightsCompaniesEventsMiningGeneral mining & base metalsRachel Middleton16:35 Mon 04 Jan 2021viewCastillo Copper LtdMove towards electric vehicles and cleaner energy to drive copper prices as major economies work towards zero-emissionsWith China, the world’s biggest automotive market, joining other major economies like the EU in the push for more electric transportation, it looks like copper is on the verge of a super-cycle. Electric vehicles use three times more copper than current non-EVsCopper prices are set to soar as demand for the metal intensifies as more and more countries press on with plans to turn their economies greener with focus on electric vehicles (EVs) and clean energy.With China, the world’s biggest automotive market, joining other major economies like the European Union in the push for more electric transportation, it looks like copper is on the verge of a super-cycle.China and Europe together will represent 72% of all passenger EV sales by 2030, driven by carbon emission regulations in Europe and China’s EV credit system fuel economy regulations and city policies limiting new internal combustion vehicle sales.While copper has been used in vehicles for decades, EVs use three times more copper than current non-EVs.Green industriesIn addition, the demand for renewable energy is contributing to pressure on copper prices.Goldman Sachs head of commodities research Jeff Currie said: “We have all the tell-tale signs of a super-cycle.”And he is not alone. Other analysts are also highlighting the impact of economic stimulus programs instituted by governments following the COVID-19 pandemic, which in turn is boosting demand for copper as well as other metals.A superconductorFurther, being a highly efficient conductor of electricity and heat, copper is the number one metal used in renewable energy systems for power generation from solar, hydro, thermal and wind energy globally.Not to mention, copper itself is one of the best renewable resources being one of the few materials that can be recycled 100% over and over again without loss in performance.Civil and 5G infrastructureCopper is also widely used in construction wiring and piping as well as electrical transmission lines, making it a key metal for civil infrastructure renewal.It is a key component of the global 5G buildout, which requires more fibre and copper cable to connect equipment.Growing US market for EVsAlthough the US is behind other countries in the EV markets, it is expected to catch up in the 2030s, as it is seen as an ideal adopter of EV vehicles. President-elect Joe Biden plans to shift the country towards wind and solar power, as well as EVs and has targeted to spend up to US$1.7 trillion over 10 years to boost renewable power and speed the introduction of EVs.China’s EV policyAccording to China’s State Council, sales of electric, plug-in hybrid and hydrogen-powered vehicles in China are forecast to rise to 20% of overall new car sales by 2025, to just over 5% currently.The country’s policy paper, as part of its five-year plan through to 2025, advocates for significant improvements in the technologies of China’s electric vehicle components and building more efficient electric vehicle charging and battery swapping networks.This paper also said the Chinese government would improve the green car quota system to guide automakers to make more environmentally friendly vehicles after it ended new energy vehicles subsidies and boosted sales for public uses such as bus and trucks.Europe’s EV policyTransport still accounts for nearly one-quarter of Europe’s greenhouse gas (GHG) emissions in Europe and the EU is committed to cut GHG emissions from transport and other sectors.The aim is to cut emissions by at least 40% below 1990 levels by 2030 and for transportation in particular, the target is to cut emissions by 60% compared to 1990 levels by 2050.Freezer production boosts demandIt is not just EVs. Investment bank Citi, noted that the fear of food shortages in countries hit by COVID-19 lockdowns had pushed strong demand for freezers, causing a rush for copper.“We have seen an 80% year-on-year increase in freezer output in China, potentially reflecting COVID-19 related fears over security of food supplies,” Citi said.“A surge in air-conditioner, fridges/freezers and appliances appears to have supported changing consumer patterns in key export markets as people spend more time at home and their concerns about food security have risen.“The cooling sector includes refrigerator output that was up 22% year-on-year in November and freezer output up 80%, whereas air-conditioner production, which usually dominates this end-use sector, was up only 5.5%.”“Broader strength in-home appliance demand reflects a combination of strong property sales in China and likely increased levels of home renovation outside China.”The investment bank said Chinese copper demand had lifted global end-use copper to the highest level in almost four years, with more growth expected as other countries follow the Chinese recovery.Copper production drops in 2020Industry experts are predicting that copper production fell in 2020, with supply expected to have fallen by 1.2% or 257,000 tonnes from 2019.However, in 2021, the global copper mining industry is looking at output to rise to 21.4 million tonnes from 1.36 million tonnes.Long-term production pressureAccording to the Commodities Research Unit, global copper mined production is expected to decline from the current 20 million tonnes to below 12 million tonnes by 2034, resulting in a supply shortfall of more than 15 million tonnes.It is believed that there will not be enough new mines in the pipeline to take over the 200 copper mines that are expected to run out of ore before 2035.Copper pricesIn mid-December, the red metal topped at US$7,964 a tonne, an eight-year high.Goldman Sachs is bullish, expecting the current copper bull run to continue well into 2022, with the metal likely to hit $10,000 per tonne for only the second time in its history. Castillo Copper set to benefitCastillo Copper Ltd could be a clear winner with its (ASX:CCZ) (LON:CCZ) (FRA:7OR) Big One Deposit at Mt Oxide Project in Queensland, which could both develop into a substantial standalone asset or provide significant near-term, high-grade copper ore to a proximal larger discovery, according to UK-based broker SI Capital.Castillo has projects in Queensland, New South Wales and across the Zambian copper-belt as it seeks to become a mid-tier producer.The company has identified two stand-out targets at its Mt Oxide Project that could deliver potential scale and exploration upside: Big One Deposit and Arya Prospect.Drill logs and assays are expected to be announced for Big One this month. The company is targeting shallow high-grade copper on the former mining lease close to Mt Isa and within the region's prolific copper-belt.Share prices have reflected the company's strong newsflow along with copper's ongoing rises and strong future fundamentals.From a low of A$0.01 in March 2020, Castillo has risen to as much as $A0.056 in late October and today shares have been as much as 12% higher to A$0.039.Aeris has ‘exciting results’ at ConstellationProducer Aeris Resources Ltd (ASX:AIS) is another expected to benefit from the rosy outlook on copper as it recommences its drill program early this month after receiving high-grade results from the initial two drill holes at Constellation deposit of its 100%-owned Tritton operations in central New South Wales.Drill holes TAKD001 and TAKD002 both intersected high-grade copper mineralisation while a third EM conductor was identified from a down-hole EM survey on TAKD002.Large Havilah projectHavilah Resources Ltd (ASX:HAV) (FRA:FWL) recently highlighted that reverse circulation drilling has demonstrated a wide zone of gold-copper mineralisation in the fault intersection area at West Kalkaroo project, to the east of the planned stage 3 gold starter open pit in South Australia.Long intervals of gold and/or gold-copper mineralisation were returned in all drill holes in the upper, oxidised saprolite gold-native copper zone as well as in the underlying sulphide zone.Kalkaroo is the largest undeveloped open-pit copper deposit in Australia on a copper equivalent (CuEq) ore reserve basis, with a 0.74% CuEq grade.Quick facts: Castillo Copper LtdPrice: 0.038 AUDASX:CCZMarket:ASXMarket Cap:$38.54 mFollowJul '20Sep '20Nov '20Jan '210.020.040.06040MZoom1m3m6m1yFromJul 3, 2020ToJan 3, 2021Highcharts.comView company profileAdd related topics to MyProactiveGeneral mining & base metals Small caps Castillo Copper Ltd Havilah Resources Ltd Aeris Resources LtdSign up for NewsletterCreate your account: sign up and get ahead on news and eventsNO INVESTMENT ADVICEProactive Investors Australia Pty Ltd ACN 132 787 654 (the Company, we or us) provides you with access to the content set out above, including any news, quotes, information, data, text, reports, ratings, opinions,...FOR OUR FULL DISCLAIMER CLICK HEREMost readMiningMiners ride 2020 rollercoaster and come off in strong position6 days, 6 hours agoRetail & consumerAustralian stocks recover all early 2020 losses – just5 days, 1 hour agoHealthCOVID-19 dominates 2020 for biotech sector … and everyone else5 days, 9 hours agoIndustry & servicesIDTechEx outlines five electric vehicle opportunities in 20214 days, 2 hours agoInvestor deep diveCastillo Copper progresses strategy to become mid-tier miner amidst strong copper marketread more >More on this storyMiningCastillo Copper awaits Big One assays at the start of what shapes...3 hours, 37 minutes agoMiningCastillo Copper’s Big One Deposit could develop into a substantial...2 weeks, 5 days ago03.31MiningCastillo Copper says The Big One deposit 'really beginning to take...3 weeks agoMiningCastillo Copper records more shallow, visible copper oxide and...3 weeks agoWatch 03.31Castillo Copper says The Big One deposit 'really beginning to take shape'Castillo Copper Ltd's (ASX:CCZ) (LON:CCZ) (FRA:7OR) Ged Hall tells Proactive they're continuing to enhance the copper potential of the Big One Deposit within the core Mt Oxide Project in northwest Queensland by intersecting incremental shallow, visible copper oxide and sulphide mineralisation,...3 weeks ago04.18MiningCastillo Copper 'getting more confident' with shallow...on 30/11/2008.57MiningCastillo Copper: Shareholders' Q&A sessionon 17/10/2022.15Conference presentationCastillo Copper present at the Proactive One2One Virtual Eventon 16/10/2003.51MiningCastillo Copper says results 'reveal potential for high grade...on 14/9/20Editor's picksMiningCore Lithium’s share price soars on Yahua-Tesla lithium offtake deal1 hour, 55 minutes agoMiningCastillo Copper awaits Big One assays at the start of what shapes...3 hours, 37 minutes agoMiningArtemis Resources to hit the ground running in 2021 at Carlow...4 hours, 53 minutes agoMiningRed River Resources hits highest grade interval to date at...6 hours, 46 minutes agoMiningChalice Mining gains access to major new nickel-copper-PGE targets...7 hours, 29 minutes agoMiningArgonaut Resources given green light to begin drilling for copper...8 hours, 4 minutes agoTechYPB Group says every business needs to be QR code ready in 20214 days, 4 hours agoMiningVRX Silica at 8-year high on continuing strong interest from...4 days, 5 hours agoMining2021 looks set to be reputationally tricky but ultimately...4 days, 6 hours agoMiningPNX Metals buoyed by continuing support of major shareholder Delphi4 days, 7 hours agoAdd Castillo Copper Ltd to alertsBookmark7 MIN READAboutMeet the teamContactT&CWork for usAdvertisingFollow us on:Copyright © Proactive Investors 2021.All Rights Reserved - 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