Future Ocean, Kiel Marine Sciences March 20, 2013 World...
Transcript of Future Ocean, Kiel Marine Sciences March 20, 2013 World...
Future Ocean, Kiel Marine SciencesMarch 20, 2013
German Mineral Resources Agency (DERA) at the German Geological Survey (BGR)
Peter Buchholz, Ulrike Dorner
German Mineral Resources Agency at the
Federal Institute for Geosciences and Natural Resources (BGR), Berlin, Germany
March 20, 2013
World metal production and future demands
German Mineral Resources Agency (DERA) at the German Geological Survey (BGR)
Founded 10/2010, opening of DERA in Berlin 28. August 2012
„Mineral supply for the German industry has a high priority for us. Moving the German Mineral Resources Agency to Berlin is a consequent nextstep.“
Services provided by the German Mineral Resources Agen cy (DERA)
Securing raw material supply for Germany
Services
A Improve market transparency in the mineral resources sector byproviding minerals information and analysis and advise companies about price and supply risks
B Professional backing of measures taken bythe German government and companies tosecure raw materials supply
Aim
Raw Materials Information and Analyses Contributions to a secureraw materials supply
1. Raw Material Information System
2. RiskAssessment
3. Raw Material Potentials
4. Strategies forSecurity of Supply
5. DiversifiyingSupply
Services
Network Building, Raw Material Dialogues, Industry Wo rkshops, Conferences
1. Future DemandIndustrializationInfluence of emerging technologies
2. Future SupplyMajor supply sources
German Mineral Resources Agency (DERA) at the German Geological Survey (BGR)
3. Which raw materials are critical? Price and supply risks
4. Outlook for copper, terrestrial and marine – somethoughts
Future Demand
German Mineral Resources Agency (DERA) at the German Geological Survey (BGR)
Cyclical raw material markets: Price and GDP
Que
lle: B
GR
Dat
enba
nk, C
RB
, Wor
ld B
ank
CRB Metals Sub-Index
1. Oil price shock
2. Oil price shock
Collaps ofUSSR
China Factor ?
Asia crisis
500
600
700
800
900
1000In
dexw
ert
0,0
2,0
4,0
6,0
GDP growthworld (%)
Financial
CRB
Que
lle: B
GR
Dat
enba
nk, C
RB
, Wor
ld B
ank
Collaps ofBretton-Woods
?
High demand
0
100
200
300
400
500
1947
1952
1957
1962
1967
1972
1977
1982
1987
1992
1997
2002
2007
Inde
xwer
t
nominal real, basis: 2000
2013
Financialcrisis
Reuters CRB-Metals-Subindex copper-, steel- and lead sc rap, zinc, tin
Future Demand – Industrialisation in a changing world
Major raw material consumers 2011 (2005)
50
60
70
80
%
53,3
42,2
45,1
39,6
43,4
42,7
48,545,4
(25,3)
(27,1)
(32,0)
(21,1)
(18,2)
(28,6)
(31,4)
(44,1)
IND D KOR KOR D KOR KOR RUS JPJP KOR JP D KOR D JP IND RSA
D IND DUSA
IND USA IND JP IND
USA USA USAJP
USAJP
USAUSA
USA
10
20
30
40
Al Pb Cu Ni Zn Sn steel oil hard coal
CN
CN
CNCN
CN
CNCN
CNCN
11,4
Share of global demand
20
30
40
50
60%
Brasilien
China
Indien
Russland
0
10
20
18
50
18
60
18
70
18
80
18
90
19
00
19
10
19
20
19
30
19
40
19
50
19
60
19
70
19
80
19
90
20
00
20
10
Average share of demand of the BRIC states of globa l demand for aluminium, steel, copper, zinc and tin
University of Bonn, M. Stürmer, study commissioned and funded by DERA, 2012
Share of global demand
20
30
40
50
60% Großbritannien
USA
Deutschland
Japan
Südkorea
Great Britain
USA
Germany
Japan
South Korea
0
10
20
18
50
18
60
18
70
18
80
18
90
19
00
19
10
19
20
19
30
19
40
19
50
19
60
19
70
19
80
19
90
20
00
20
10
Average share of demand of Industrialised Nations o f global demand for aluminium, steel, copper, zinc and tin
University of Bonn, M. Stürmer, study commissioned and funded by DERA, 2012
Outlook demand: Emerging technologies
Raw material
2006* 2030* Emerging Technology
Gallium 0,18 3,97 Thin layer photovoltaics, IC, WLED
Indium 0,40 3,29 Displays, Thin layer photovoltaics
Scandium low 2,31 SOFC Fuel cells, Al-alloys
Germanium 0,28 2,20 Fibre optic cable, IR optical tech nology
Neodym 0,23 1,66 Permanent magnets, laser technology
Share of global production in 2006 compared to global demand in 2030 for the relevant technology Source: Fraunhofer-Institut für System-und Innovationsforschung, Institut für Zukunftsstudien und Technologiebewertung (2009); * Recalculated by BGR with new data (2009)
Platinum low 1,35 Fuel cells, catalysts
Tantalum 0,40 1,02 Micro capacitors, medical technolog y
Silver 0,28 0,83 RFID, lead free solders
Tin 0,57 0,71 Lead free solders, transparent electrode s
Cobalt 0,21 0,43 Lithium ion batteries, synthetic fuel s
Palladium 0,09 0,29 Catalysts, seawater desalination
Future Demand - The influence of emerging technologi es:Breakthrough difficult to predict
Expected increases in demand for selected raw materials in correlation to current supply and corresponding supply risks
(source: Tercero Espinoza: „The role of emerging technologies in a rapidly changing demand for mineral raw materials“, Polinares WP2
POLINARES Final Conference 28th November 2012
Future Supply
German Mineral Resources Agency (DERA) at the German Geological Survey (BGR)
Outlook demand: Emerging technologies
Global reserves and resources – a dynamic system
Undiscovered
Resources
Reserves
Reserve base Resources
Resources
identified undiscovered
Static lifetime of reserves and resources – a dynamic syste m
4
8
12
16
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
20
40
60
80
1987: 39 years2008: 36 years
2008: 14,4 Mio. t
1960: 4,2 Mio. t
Copper
Mio
. tye
ars
0,4
0,8
1,2
1,6
20
60
100
140
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Mio
. tye
ars
Nickel
1960: 0,34 Mio. t
2008: 1,5 Mio. t
1987: 63 years 2008: 46 years
0
10
20
30
0
200
400
600
t
1970 1975 1980 1985 1990 1995 2000 2005 2010
year
s
Indium
1972: 66,4 t
2007: 563 t
1989: 15 years
2007: 19 years
10
30
50
70
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
100
300
500
year
s1.
000
t Cobalt
1960: 14.734 t
2008: 63.783 t
1988: 125 years 2008: 111 years
Mine production (Indium: refined production)
Source: USGS, BGR database, 2009
Static lifetime of reserve baseStatic lifetime of reserves
Global supply – What are the major mining countries?
fota
lia
Major mining countries of the world
Major mining countries in the world* by value
Share of global mine production >5 %, countries represent ca. 50-55 % of the total value
5 - 10 %
Data source: Raw Materials Group Stockholm, Mines Value 2008, 75 % coverage* Metals, diamonds, zircon, P, K2O, B, Li, incl. U
Major mining countries of the world
Major mining countries in the world* by value
Share of global mine production >1 %, countries represent ca. 60-65 % of the total value
5 - 10 %
1 - 5 %
RMG Mines Value 2008, 75 % Datenerfassung* Metalle, Diamanten, Zirkon, P, K2O, B, Li, inkl. U
Major mining countries in the world* by value
Share of global mine production >0,1 %, countries represent ca. 80-85 % of the total value
Major mining countries of the world
5 - 10 %
1 - 5 %
0,5 - 1 %
0,1 - 0,5 %
RMG Mines Value 2008, 75 % Datenerfassung* Metalle, Diamanten, Zirkon, P, K2O, B, Li, inkl. U
Gloabal exploration budgets and CRB-Metals-Sub-Index
Ex
plo
rati
on
bu
dg
ets
[b
n U
S$
]
10
12
14
16
18
800
1000
1200
Su
b-I
nd
ex
Latin
America
Rest of
Australia
Pacific/
SE-Asia; 5 %
25 %
19%15 %
USA; 7 %
14 %
Ex
plo
rati
on
bu
dg
ets
[b
n U
S$
]
2
4
6
8
10
200
400
600
CR
B M
eta
ls-S
ub
1990 1995 2000 2005 2010
Canada
Africa
Rest of
world
19%
15%
15 %
Data Source: Metals Economics Group (MEG), CRB
Which raw materials are critical?
German Mineral Resources Agency (DERA) at the German Geological Survey (BGR)
Rare Earths: Global concentration of mine production
China2010: 118,900 t
SEO
97 % of global production
Russia2010: 1,495 t SEO
USA 2010: 1,483 t SEO
from dumps
Methodology: Global concentration of supply (Herfindah l-Hirschman-Index, HHI)
DERA Risk Assessment for Mineral Supply
productionHHI = 9,520
Brazil2010: 1,043 t Monazite
from dumps
India2009:
2009: 35 t SEO
World Bank Group GovernanceIndicators (WGI)
-0.5 to 0.0
-2.5 to -2.0
-2.0 to -1.5
-1.5 to -1.0
-1.0 to -0.5
Methodology: Weighted country risk (GLR) by World Governance Indicators
DERA Risk Assessment for Mineral Supply
0.0 to 0.5
0.5 to 1.0
1.0 to 1.5
1.5 to 2.0
World Governance Indicators by World Bank:
- Control of Corruption- Voice and Accountability- Political Stability and Absence of Violence- Government Effectiveness- Regulatory Quality- Rule of Law
World Bank Group, 2010. Worldwide Governance Indicators (WGI). http://info.worldbank.org/governance/wgi/index.asp.
DERA study on critical raw materials – Highlight Cu, Ni, Mn, Mo
NiCr
Sn
SnV
Co
Graphit
GranatPd
Magnesit
SbW
Mg
Bi
–1,5
–1,0
–0,5
highW
eig
hte
d c
ou
ntr
y r
isk
of
pro
du
ctio
n,
wo
rld
ba
nk
da
ta
Metals (ore) Metals (refined) Industrial minerals
Seltene Erden
Phosphat Baryt
FeCr
Fluorit
RohstahlNi
Au
Kaolin
Ag Bentonit
Ni
Zn
Cu
Fe
KaliGlimmer
ZnAl
Talk Si
Li
Zr
GranatPd
Pt Nb
Ti
0,0
0,5
1,0
1,5
Herfindahl-Hirschman-Index of production 2009/2010 (country concentration )
400 1.000 10.0001.500
low medium high
We
igh
ted
co
un
try
ris
k o
f p
rod
uct
ion
, w
orl
d b
an
k d
ata
Pb
CoBx
2.500
Rutil
Pb
MoIn
FeCr
Mn
Cd
Rohstahl
Cu
Indicators for market evaluation
Outlook for copper
German Mineral Resources Agency (DERA) at the German Geological Survey (BGR)
Copper mine production 2010
Quelle: BGR Datenbank
Copper mine production 2010 and country risk
Quelle: BGR Datenbank
Country and company concentration of copper mine producti on
Distribution of copper reserves 2010
Quelle: USGS
Future Production – annual mine capacity until 2017
Data source: Metals Economic Group
The ten largest cooper projects (total, all cooper proje cts until 2017: 9.6 Mt Cu)
Name Firma Land Status Typ Erwartete Jahresför-derkapazität[1.000 t Cu]
Reserven & Ressourcen [Mio. t Inh.]
Erwarteter Produktions-beginn
Betriebs-kosten [US$/lb]
Resolution Rio Tinto USA Feasibility UG 500 23,9 2021 k. A.
Oyu Tolgoi Rio Tinto Mongolei im Bau OP 450 31,5 2013 0,45
Tampakan Xstrata Philippinen Feasibility OP 450 15,1 2019 0,46
Congo Mines and Infrastructure Construction*
China Railway Engineering
DR Kongo Feasibility 400 6,8 2013 k. A.
El Pachon Xstrata Argentinien Feasibility OP 400 15,5 2016 0,50El Pachon Xstrata Argentinien Feasibility OP 400 15,5 2016 0,50
Las Bambas Xstrata Peru im Bau OP/UG
400 10,5 2014 0,60
Golpu Newcrest Mining
Papua-Neuguinea
Prefeasibility UG 330 k. A. 2019 k. A.
Pebble Northern Dynasty Minerals/AngloAmerican
USA Prefeasibility OP/UG
307 32,4 2019 -0,11
Frieda River Xstrata Papua-Neuguinea
Feasibility OP 304 12,8 2017 0,43
La Granja Rio Tinto Peru Prefeasibility OP 300 18,4 2017 0,47
* Dikuluwe- und Mashamba-Konzession
Expected future supply for copper until 2017
Future Demand – Industrialisation: Asia as a driver
Demand for copper per world region(low/high growth scenario, by ENERDATA)
High growth scenario
(source: Keramidas, Kitous, Griffin: „Future availability and demand for oil gas and key minerals“, Polinares WP2
Low growth scenario
POLINARES Final Conference 28th November 2012
Terrestrial and marine mining
German Mineral Resources Agency (DERA) at the German Geological Survey (BGR)
- some thoughts
Terrestrial and marine mining – some thoughts
Cu, 1.18 %2.0 Mt*
(ore, dry)
21,000 t
(metal)
GradeAnnual
Mine capacitywet ore30 % moist.mine loss
Recovery90 %??
Mine Production(One mine)
Mn-nodulesCCZ
Annual metalproduction
Copper, simple estimate (dimensions)
(ore, dry) (metal)CCZ
Cu, 0.5 %100 Mt
(ore)
405,000 t
(metal)
Recovery90 %
Terrestriale.g. Las Bambas, Peru
Mine loss10 %
*marine: range 1.5-4.0 Mt annual mine capacity, International Seabed Authority, Hein et al, 2013 and others
Ni, 1.39 %2.0 Mt
(ore, dry)
21,000 t
(metal)
GradeAnnual
Mine capacitywet ore30 % moist.mine loss
Recovery90 %??
Mine production
Mn-nodulesCCZ
Annual metalproduction
Nickel, simple estimate (dimensions)
Terrestrial and marine mining – some thoughts
(ore, dry) (metal)CCZ
Ni, 1.04 %8 Mt
(ore, lat.)
50,000 t
(metal)
Recovery70 %
Terrestriale.g. AmbatovyMadagascar
Mine loss10 %
*marine: range 1.5-4.0 Mt annual mine capacity, International Seabed Authority, Hein et al, 2013 and others
Average cash costs for copper (terrestrial)
Cash operating costs and pricefor marine Mn-nodules ??
Combined Cu, Ni, Mo, (Mn andothers)others)
Future Ocean, Kiel Marine SciencesMarch 20, 2013
German Mineral Resources Agency (DERA) at the German Geological Survey (BGR)
Peter Buchholz, Ulrike Dorner
German Mineral Resources Agency at the
Federal Institute for Geosciences and Natural Resources (BGR), Berlin, Germany
March 20, 2013
World metal production and future demands