Copper: Critical to Sustainable Development

Transcription

1 Copper: Critical to Sustainable Development J-S Jacques, chief executive International Copper Association Technical Workshop, London 28 October 2016 **Check against delivery** Good afternoon, it is great to be here to welcome you all to the first-ever technical workshop on copper. Copper has a vital role to play in creating a greener, healthier, and more sustainable world. Let me give you some examples: Did you know that specialized copper kills 99 per cent of germs? The spread of infection in hospitals can be significantly reduced by using copper surfaces. Did you also know that copper is 100 per cent recyclable? Making it one of the greenest metals on the planet and a critical part of the renewable energy solution. Today s session is important. It marks a shift in the Association s strategy to openly share data and information on copper and its value to a wider range of people such as analysts, commentators and journalists. We want our industry to be part of the solution not the problem. And this means being more open about both the benefits we deliver and the challenges we face. Throughout the course of the day, you will hear from a range of industry experts on long-term copper demand and more on some issues, such as substitution. But before we get there, I want to share some thoughts on the important role copper plays in society and sustainable development. The global copper industry is set to produce 22.5 million tonnes of copper in 2016, a projected increase of 3.6 per cent over The vast majority 70 per cent or more will go into electrical devices, such as your favourite mobile phones, and items in your cars and homes. Copper electrifies the modern world. It brings information and access to corners of the globe that need it most. It delivers electricity and clean water into our homes and cities. It is crucial to transportation, infrastructure and industry. It makes our way of life in the developed world possible, and helps drive emerging economies forward. While copper is broadly recognized for its industrial and electrical uses, its significant contribution to society and sustainable development is far less well known. And as I have already mentioned we must tell our contribution story more effectively. As there is perhaps no other metal or material so critical to the global sustainable development agenda. Let me explain what I mean by this. I am sure you have all heard of the historic climate change agreement reached in Paris last December. Page 1 of 5

2 The Paris agreement drew a line in the sand, challenging the world to limit man-made climate change to below two-degrees-celsius. According to an International Energy Agency report, half the actions needed to meet this commitment can be achieved through energy efficiency, and this will require copper. Copper is the best non-precious conductor of heat and electricity on the planet, so items that contain copper tend to operate more efficiently. In efficient energy applications, every tonne of copper cathode we produce will save between one hundred and seven and a half a thousand tons of CO2. This will result in between three thousand and three million US dollars in reduced energy costs. It s clear that climate change is an issue our industry must tackle in larger and more visible ways, and ICA is leading the way. Let me give you an example. The ICA formed a public-private partnership, U4E, with the United Nations Environment Program to advance energy efficiency. This partnership is advancing rapidly, announcing more than 50 million US dollars in commitments with more than a dozen countries involved. U4E is about accelerating the transition toward energy efficient lighting, appliances and industrial equipment. By 2030, it aims to reduce global electricity consumption by 10 per cent, and drive a reduction in CO2 emissions. To give you a feel for what this means, it would be equal to taking roughly half a billion cars off of the road. To deliver sustainable solutions, the world will need copper. Renewable energy resources require four to 12-times as much copper as traditional fossil fuel-based power generation. For example, one megawatt of solar photovoltaics uses about four tonnes of copper. Consider that the global installed base of solar is around 230 gigawatts and, according to the International Energy Agency, this installed base will grow to between 1,750 and 2,500 gigawatts between now and If you do the sums, that equals between seven and 10 million tonnes of copper demand to meet the growing solar power generation capacity. As many of you may know, globally, about 15 per cent of man-made carbon dioxide comes from the transportation sector. Of that, about 60 per cent comes from passenger vehicles. While there are many great solutions aimed to reduce the vehicle emissions challenge, the world has really got excited by electric cars. Of course, generating the energy to power electric vehicles also produces emissions. But those emissions levels are far lower than the pollution emitted by conventional vehicles. Page 2 of 5

3 What does this mean for copper? Across the world, around 80 million passenger vehicles are sold every year. Bloomberg New Energy Finance estimates this number will grow by a third to 120 million cars per year by That same source predicts that by 2040, more than 40 million fully electric vehicles will be sold each year, accounting for 35 per cent of total vehicles sales. With 90 or more kilos of copper used in a full electric vehicle three to four times more copper than used in a gas-powered car it is clear to see the positive impact the use of electric vehicles could have on copper demand. Energy efficiency is the cheapest and the quickest way to address climate change and save businesses and people money. You might think that copper is an expensive option and that there must be lower-cost materials that can be used but consider this: astute engineers and regulators base their decisions not on first-cost comparisons, but on lifecycle cost comparisons, and in this calculation, copper almost always wins. That s because copper is 100 per cent recyclable. It can be used again and again without any loss of its properties, including its high level of conductivity. One-third of copper demand today is met from recycled metal. Of the roughly 550 million tonnes of copper produced since 1900, a vast majority is still in productive use today. The benefit of copper versus other materials is the sustainability of copper itself. In 2015, the UN adopted 17 Sustainable Development Goals that provide a 15-year framework for addressing mankind s most critical issues. One of the issues they identified is climate change. Another is public health. Here too, copper is vital. The copper industry, through ICA, has invested more than 40 million US dollars to make a positive impact on public health using copper, which is naturally antimicrobial. This work has shown that harmful bacteria die quickly on copper and copper-alloy touch surfaces, with a 99.9 per cent reduction in bacteria in laboratory testing. In clinical trials funded by the US Government, Anti-microbial copper surfaces were installed in three hospitals. And in rooms that contained copper, there were nearly 60 per cent fewer infections. Nearly 1,000 people die every day from a hospital-acquired infection, making these infections more fatal than breast cancer and HIV combined. Clearly, copper can play a key role in keeping people healthy. In closing, copper has a powerful story to tell. But too often, and for too many, extractive industries like mining are often perceived as dark, dirty and dangerous. This is simple wrong. And this view can make it more difficult for our projects and operations to earn a social license to operate. Page 3 of 5

4 Securing a social license to operate is a make or break for our industry. We call it our privilege to operate. We must demonstrate how we will share the benefits created by our operations, and how we will partner with local communities and host governments. We also must explain what we are doing to ensure the long-term sustainability of the planet and its seven billion people. This is a challenge that will grow in the coming years as socially aware consumers put more pressure on their governments to ensure businesses and industries operate in socially responsible, sustainable ways. This industry has a powerful story to tell but, quite frankly, we need to do a better job telling it. ICA is leading the way, but it is up to us as an industry and as individual companies to shift perceptions, and make sure the world understands copper s vital contribution to a sustainable way of life. I invite you to visit these websites and to take with you a new brochure that more completely explains the copper industry s link to the global sustainable development agenda. Copper does, indeed, make the world work better. Page 4 of 5

5 Contacts on Twitter Media Relations, EMEA/Americas Illtud Harri T M David Outhwaite T M David Luff T M Investor Relations, EMEA/Americas John Smelt T M David Ovington T M Nick Parkinson T M Media Relations, Australia/Asia Ben Mitchell T M Bruce Tobin T M Matthew Klar T M Investor Relations, Australia/Asia Natalie Worley T M Rachel Storrs T M Galina Rogova T M Rio Tinto plc 6 St James s Square London SW1Y 4AD United Kingdom T Registered in England No Rio Tinto Limited 120 Collins Street Melbourne 3000 Australia T Registered in Australia ABN Page 5 of 5