BHP Predicts 2.6% Annual Surge in Copper Demand Through 2035

Global Copper Demand Expected to Increase Significantly

BHP, the Australian mining giant, has announced that global copper demand is set to rise by 2.6% annually until 2035, translating to an additional 1 million tonnes each year. This growth is attributed to the global energy transition and the rapid development of the digital sector.

Historical Trends and Future Projections

Although copper demand has grown at an average rate of 3.1% over the past 75 years, growth slowed to 1.9% in the last 15 years. BHP expects this trend to reverse, forecasting a 70% increase in copper demand by 2050, which would see annual consumption surpassing 50 million tonnes.

Energy Transition and Recycling’s Role

The energy transition is expected to account for 23% of global copper consumption by 2050, a substantial increase from the current 7%. Furthermore, the digital sector’s share of copper use is projected to rise from 1% to 6%. Recycled copper is poised to play a crucial role, with its contribution to total consumption expected to increase from one-third to 40% by 2035.

Supply Challenges for the Future

Despite the optimistic outlook, BHP has highlighted significant challenges, including rising production costs and declining ore grades, which have decreased by 40% since 1991. To meet the anticipated demand, the mining sector will need to find an additional 10 million tonnes of newly mined copper annually over the next decade.