SUPPLY CHAIN OPERATIONS AND ENERGY
Future
Minerals Forum - 13th January - Plenary - EN
" While raw-materials needs will grow exponentially for certain metals , lead times for large-scale new greenfield assets are long ( seven to ten years ) and will require significant capital investment before actual demand and price incentives are seen ," it states .
At the same time , with increasingly complex ( and largely lower-quality ) deposits needed , miners will require significant incentives , for example , consistent copper prices of more than US $ 8,000 to US $ 10,000 per metric ton and nickel prices of more than US $ 18,000 per metric ton , before large capital decisions are made .
It believes commodities facing an upside in demand from the energy transition will follow one of three trajectories : 1 . Supply responds to prices 2 . Demand accelerates , prices react strongly , and materials substitution kicks in
3 . Demand accelerates , prices react strongly , and technology substitution kicks in
Miners will need to ( re ) build a growth agenda , innovate for productivity and decarbonisation of operations , and embed themselves into supply chains .
In conclusion , companies will need to identify and distinguish between hard and soft constraints around technology rollout and then engineer raw materials that may be difficult or expensive to source .
" Irrespective of the strategy used , companies along the supply chain , such as cathode-active material producers , EV OEMs , and battery producers , will need to secure raw materials to enable aggressive growth plans , while also decarbonising their own supply chains .
86 March 2022