On 11 May 2020 the World Bank released its Minerals for Climate Action report.
"While some minerals, like Copper and Molybdenum, will be used in a range of technologies, others, such as graphite and lithium, may be needed for just one technology: battery storage. This means that any changes in clean energy technology deployments could have significant consequences on demand for certain minerals.
While we cannot fully predict the future, we can gain some insight into who the new (mineral) kids on the block will be, by 2050. Based upon what we call the demand risk matrix, we know that aluminum, Copper and nickel are 'critical minerals' that will play a strong role in the transition to a low-carbon future, as they will be needed for a wide variety of technologies. Graphite and lithium are also 'critical', but their outlook depends on the extent to which battery storage is deployed between now and 2050":
The World Bank Demand Risk Matrix (see page 78 of the report):
1. 'Medium-impact' minerals, such as Neodymium and silver, will be needed for a small range of energy technologies, and their demand is not expected to grow significantly between now and 2050. However, Neodymium is a key ingredient for offshore wind turbines.
2. 'High-impact' minerals only feature in a small number of technologies, but their future demand is significantly greater than today. One example is lithium, which will only be used in energy storage, but must ramp up its production by 488% to meet demand. Cobalt and graphite fall in the same category.
3. Minerals that are both 'high-impact' and 'cross-cutting' will be used in a wide range of technologies and a great amount of them will be required to meet projected demand in a low-carbon world. One example is aluminum: it is used widely for both energy generation and storage technologies, with roughly 103 million tons of aluminum needed to supply 87% of solar PV and a range of other clean energy technologies to achieve a below 2°C future. Aluminum is thus a 'critical mineral' because it will be necessary for the clean energy transition, regardless of scenario plays out. [Steel (Iron Ore) is outside the model, but would fall into this category per the World Bank, see page 89 of the report]
4. Minerals that are 'cross-cutting' will be important because they will be used across a wide variety of technologies. Examples are Copper andMolybdenum.Copper is used across a number of energy technologies – so regardless of the low-carbon 'pathway', it is likely to be relevant in 2050. It also means that the clean energy transition will depend very much on the availability of Copper itself.
Havilah’s flagship project at Kalkaroo, in northeastern South Australia, contains at least 1.1 million tonnes of Copper, 3.1 million ounces of gold and 23,200 tonnes of Cobalt as well as significant amounts of Molybdenum, sulphur with rare earth element (Neodymium, Praseodymium, Dysprosium, Terbium) potential.
Havilah’s strategy recognises that while Gold is a good high margin business, supported by a lower Australian dollar, Copper is a solid longer-term story for the Company.
Technical Director Dr Chris Giles has previously said: “New Copper developments have slowed at the time when usage is expanding with the highly Copper intensive renewable energy generation and storage revolution, not to mention EVs and antimicrobial applications."
With a diverse portfolio, Havilah's JORC Mineral Resources in a range of metals provides good exposure to resources commodity cycles in Gold, Copper, Iron Ore and Cobalt.
Cheers
These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
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