TELF AG analyzes Australia’s mineral potential and its role in the copper industry
The role of Australia
Despite only being in eighth place among the world’s copper producers, Australia is rapidly coming to the attention of observers as one of the most active nations in the extraction and processing of this precious mineral (a resource which also appears in the list published a few months ago by the European Commission, and which precisely identifies the 34 critical raw materials considered fundamental for the economic, industrial and sustainable development of nations).
In 2022 alone, mines located in Australia produced approximately 830,000 tonnes of copper, with a marked increase compared to the quantity that had been extracted during the previous year. According to a recent report by Geoscience Australia, up to December 2021, there were 33 active copper mines in Australia, but in these two years, the figure seems to have risen further. What is most surprising when you think about Australian extraction capabilities in this sector is the fervor with which they are approaching the exploration and development of new deposits throughout the country, as if a real race were underway to copper by various international companies and players.
Australia’s role in the raw materials sector is certainly no secret: we must not forget that China, between 2005 and 2021, invested more than 25 billion dollars in mining and refining activities in Australia, sensing its immense mineral potential well in advance. Australia is in the ideal position to derive maximum benefits from the wealth of its mineral resources, and not only for a quantitative question: in an economic context characterized by an increase in prices on the raw materials market, Australia has everything it needs to establish itself as one of the top global points of reference in the extraction sector, in particular, if the flow of investments for new development projects remains constant in the coming years.
According to some estimates by the Australian government, the revenues linked to copper exports are, in fact, destined to grow in the space of a few years, going from the current 12 billion Australian dollars to the almost 18 billion expected between 2027 and 2028. In 2023, in a quarter alone, the Australian government announced that it had spent almost $140 million on activities related to copper mining, and the figure could inevitably grow.
Among the most interesting projects, we can certainly mention the one linked to the construction of a new mine in Western Australia, where it is hoped to find an abundant quantity of copper-gold. Rio Tinto is working on the design of the new extraction site, and it has been calculated that as many as 249 tons of raw material could be found in that particular portion of the subsoil. One of the largest undeveloped open-pit copper mines could be the one located in the south of the country, where the Kalkaroo project is currently under development. According to Havilah Resources, which is managing the project, this deposit could, in fact, contain more than one million tons of copper and, therefore, appears very promising. Among the copper mines already active on Australian soil, we can certainly mention the Olympic Dam polymetallic mine, which is located on the fourth largest copper deposit in the world.
