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‘Mining diplomacy’ is criti cal for the future of energy
SURFACE MINING
‘Mining diplomacy’ is critical for the future of energy
According to global research, Australia's essential minerals would be in high demand during the planned global transition to sustainable energy.
The energy revolution will be shaped by control of the mining and export of five important minerals - copper, lithium, aluminum, nickel, and cobalt (CLANCs) - as major economies fight for supplies, according to a report by global bank Barclays.
AUSTRALIA IS ONE OF THE COUNTRIES WITH "HUGE POTENTIAL."
With roughly a quarter of worldwide lithium exports going to China, Australia's share of global deposits is substantial, while nickel and cobalt reserves are virtually undeveloped.
According to research released in December 2021, the predicted green energy revolution might become a new global driver, offsetting the end of the China-driven commodity super-cycle in 2014. However, as China increasingly looks to Africa to lock in supply by regulating mining operations, "mine diplomacy" will become more crucial.
Australia's most important trading partner, China, has put tariffs on coal, barley, wheat, wool, lobsters, sugar, copper, timber, wine, and grapes, but not on iron ore or key minerals. Because new mines require time, the global supply of important metals for the energy transition, such as copper, nickel, and cobalt, is likely to be "quite inelastic" in the short run.
From 2020 to 2030, the International Energy Agency predicts a surge in demand for nickel (up 441%), lithium (659%), and cobalt (413%), providing governments stick to their stated energy goals. As the society moves towards more and more renewable energy, demand for residential, automotive, and commercial-scale batteries to store the energy will surge. Graphite, nickel, cobalt, and lithium are among the battery's components, as are lead, manganese, vanadium, aluminum, chromium, iron, copper, and zinc.
Critical metals are also required for solar panels, wind turbines, and enhanced transmission systems. Magnets, gearboxes, and cabling all contain neodymium, nickel, and aluminum.
Steel strengthened with titanium or chromium is required for geothermal energy production to withstand high heat and pressure, with nickel added to prevent corrosion.
Even a slight sluggishness In many commodities markets, China has remained a strong player, particularly in metals and minerals. According to Barclays, "China continues to account for more than half of worldwide import demand for ores and concentrates of aluminium, chromium, cobalt, copper, iron, manganese, nickel, and silver ores."
IMF suggests that the energy transformation will cost up to $US10 trillion ($A14 trillion) over the next decade to achieve net-zero emissions targets by 2050. Consultant Wood MacKenzie estimates that limiting global warming to 1.5 degrees will cost $US50 trillion ($A71 trillion) over the next two decades.
