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Critical Metal Shortages Threaten Energy Transition
The mining industry faces a growing concern about potential shortages of critical metals needed for the energy transition. Rising costs and low commodity prices are hindering the development of new projects, raising fears about meeting future demands.
French
France
Energy SecurityEnergyTransitionMiningResourcesMetals
First QuantumEy
Moez Ajmi
- What is EY's ranking of metal shortage concerns among other industry risks?
- EY's study highlights that the fear of metal shortages ranks as the fourth biggest concern for the mining sector, after financing, environmental management, and geopolitics. This is a significant increase in concern compared to previous years.
- What is the main concern highlighted in the article regarding the mining industry?
- The article discusses the growing concern about potential shortages of critical metals, such as copper, needed for the energy transition. Mining companies are worried about the lack of new discoveries and the rising costs of exploration.
- What factors are contributing to rising costs in mining exploration and production?
- The rising costs of exploration and mining are hindering the launch of new projects. Factors like lower average concentration of metals in ores and managing greater volumes of waste contribute to increased costs.
- Why are mining companies hesitant to invest in new projects despite the risk of shortages?
- Despite the risks of shortages, low commodity prices are discouraging investments in new mining projects. The article highlights the challenges faced by mining companies in securing the resources needed for the energy transition.
- How much additional copper production is needed to reach carbon neutrality, according to the article?
- To achieve carbon neutrality by 2050, the world needs to significantly increase copper production. However, the discovery of new copper deposits has slowed dramatically in recent years, creating a supply gap.