2010 World Copper Factbook

The World Copper Fac ctbook 2010 0
Ab bout ICS SG
The International Copper Study G T Group (ICSG) was formally established as an autonomo intergovernmental organiza ous ation on 23 Jan nuary 1992, following a series of Ad Ho meetings spon oc nsored by the Un nited Nations (UNCTAD in 1986 and 1987 to review th world situatio of N D) he on copper and discuss the need for s such a body. ICS serves to incr SG rease copper market transparency and promote inter d rnational discuss sions and cooperation o issues related to copper. on d In order to fulfi its mandate, the Study Gro n ill oup has three main objectives: o Increase ma arket transparen ncy by promoting an exchange of information o production, co on onsumption, stocks, trade, and p prices of copper, b forecasting pr by roduction and consumption, and by c assessing the present and future capacitie of copper m e es mines, plants, smelters and refinerie es. Promote inte ernational coope eration on matte related to cop ers pper, such as health and the environment, research, techno ology transfer, regu ulations and trad de. Provide a glo forum where industry and go obal e overnments can m meet and discuss common proble ems/objectives. The ICSG is the only T intergovernm ment forum solely dedicated to copper. c The current member of ICSG are: rs Belgium Chile China European Union Finland France Germany y Greece India Italy Japan Luxembourg Mexico Netherlands Peru Poland Portugal ration Russian Feder Serbia Spain Sweden United States
As p of its manda to provide a global forum w part ate where industry an nd gove ernments can meet and discuss c common problem and objective ms es, ICSG meetings are h G held twice per ye typically in t Spring and Fa ear, the all at IC Headquarte in Lisbon, Portugal. The meet CSG ers tings of the Stud dy Group are open to g government mem mbers, their industry advisors an nd invit observers. ted
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In nternational Cop pper Study Group p
The World Copper Factbook 2010

ICSG Officers and Secretariat
INTERNATIONAL COPPER STUDY GROUP OFFICERS FOR 2009 Chairman Vice-Chairman Vice-Chairman STANDING COMMITTEE Chairman Vice-Chairman Finance Committee Chairman Mr Salim Bhabhrawala (U.S.A.) Mr Alejandro Alarcn Garza (Mexico) Mr Henrique Santos (Portugal) Mr Erik Heimlich (Chile) Mr Carlos Caxaria (Portugal) Mr Bian Gang (China) STATISTICAL COMMITTEE Chairman Vice-Chairman INDUSTRY ADVISORY PANEL Chairman SECRETARIAT Secretary General Chief Statistician Head of Environment and Economics Economist Secretary Mr Don Smale Ms Ana Rebelo Mr Carlos Risopatron Mr Joseph Pickard Ms Fatima Cascalho Mr Mark Loveitt (IWCC) Mr Daniel Edelstein (U.S.A.) Mr Juan Cristbal Ciudad (Chile)
ENVIRONMENTAL AND ECONOMIC COMMITTEE Chairman Vice-Chairman Ms Ajita Bajpai Pande (India) Ms Magdalena Kopijkowska-Gozuch (Poland)
Contacts: International Copper Study Group Rua Almirante Barroso, 386 1000013 Lisbon, Portugal Tel: +351213513870 Fax: +351213524035 email: mail@icsg.org website: www.icsg.org
Acknowledgements and Copyright: ICSG would like to thank the International Copper Association, the Copper Development Association, the European Copper Institute, the U.S. Geological Survey, the U.S. National Park Service, the British Museum and Mr. Luis Hernn Herreros Infante for their contributions to the Factbook. The International Copper Study Group's World Copper Factbook 2010 is published by the ICSG.
International Copper Study Group
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ICSG Publications
COPPER BULLETIN (monthly). The ICSG Copper Bulletin includes annual and monthly statistics on copper and copper products, their production, usage and trade by country, as well as stocks and exchange prices, providing a global view of supply and demand. Subscribers to the Copper Bulletin receive the Yearbook as part of their annual subscription. ICSG 2010 STATISTICAL YEARBOOK (July 2010). The ICSG Copper Bulletin yearbook includes annual statistics on copper and copper products, their production, usage and trade by country, as well as stocks and exchange prices, providing a global view of supply and demand for the past 10 years. The Yearbook serves as a useful tool for consultations and analysis on the longer term evolution of world copper production, usage, stocks and prices. Subscribers to the Copper Bulletin receive the Yearbook as part of their annual subscription. ICSG GLOBAL COPPER SCRAP RESEARCH PROJECT REPORT (August 2010). Copper scrap generation, trade and use are playing a key role to balance the growth observed in recent years in the global copper market. If the demand for copper continues the dynamic growth related to electrification, infrastructure development and urbanization observed mainly in developing countries, and led by China in the last two decades, then the domestic supply, demand and international flows of copper scrap are expected to remain important issues for all copper related business in the medium and long term. This report presents a comprehensive picture of the global copper scrap market and its determinants, synthesizing the findings of ICSG research project on the copper and copper alloy scrap market. DIRECTORY OF COPPER MINES AND PLANTS (September 2010 edition). The Directory of Copper Mines and Plants highlights current capacity and provides a five year outlook of forecasted capacity for over 1,000 existing and planned copper mines, plants and refineries on a country by country basis, including separate tables for SXEW plants. Salient details for each operation are included and the Directory separates operations between Operating & Developing and Exploration & Feasibility stages. The Directory is published twice per year. DIRECTORY OF COPPER & COPPER ALLOY FABRICATORS (FIRST USE) 2010 EDITION. This directory provides a systematic global overview of companies and plants involved in the first use of copper. First users are mainly semis fabricators that process refinery shapes into semifinished copper and copper alloy products. The Directory covers wire rod plants, ingot makers (for castings), master alloy plants, brass mills, and electrodeposited copper foil mills. Published September 2010. ICSG STATISTICAL DATABASE. The ICSG maintains one of the world's most complete historical and current databases with statistics on copper production capacities, data on copper production, consumption, stocks, prices, recycling and trade for copper products. Historical data series and other data are available on custom request.
For more information about ICSG and ICSG publications, please visit our website at www.icsg.org
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Table of Contents
About ICSG ICSG Officers and Secretariat ICSG Publications Table of Contents Chapter 1: Cu Basics What is Copper? Copper Properties and Benefits Selected Copper Definitions Copper in History Copper Today Chapter 2: Copper Production How is Copper Produced? Copper Mine Production: World Copper Mine Production, 19002009 Copper Mine Production by Region: 1960, 1980 & 2009 Copper Mine Production by Country: Top 20 Countries in 2009 Top 20 Copper Mines by Capacity, 2010 Constraints on Copper Supply Copper Smelter Production: World Copper Smelter Production 1976 2009 Trends in Copper Smelting Capacity, 19952010 Copper Smelter Production by Region, 19902009 Copper Smelter Production by Country: Top 20 Countries in 2009 Top 20 Copper Smelters by Capacity, 2010 Refined Copper Production: World Refined Copper Production, 1960 2009 Trends in Refined Copper Production Capacity, 19952010 Refined Copper Production by Region, 19902009 Refined Copper Production by Country: Top 20 Countries in 2009 Top 20 Copper Refineries by Capacity, 2010 Semis Production: Copper & Copper Alloy and Casting Production, 19802010 Copper and Copper Alloy Semis and Casting Production by Region, 1980 & 2008 i ii iii 1 2 2 3 4 5 6 7 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Copper and Copper Alloy Semis Capacity by Region & Product Copper and Copper Alloy Semis Production by Country: Top 20 Countries, 2010 Chapter 3: Copper Trade Major International Trade Flows of Copper Ores and Concentrates Major International Trade Flows of Copper Blister and Anode Major International Trae Flows of Refined Copper Leading Exporters and Importers of SemiFabricated Copper Products, 2009 The Global Copper Market and the Commodity "Copper" Copper Stocks, Prices and Usage Chapter 4: Copper Usage How is Copper Used? World Refined Copper Usage, 19002009 Refined Copper Usage by Region, 1960, 1980 & 2009 World Refined Copper Usage per Capita: 19502009 Intensity of Refined Copper Use Total Copper Usage, Including Copper Scrap, 20022008 Major Uses of Copper: Electrical Major Uses of Copper: Electronics and Communications Major Uses of Copper: Construction Major Uses of Copper: Transportation Major Uses of Copper: Industrial Machinery and Equiptment Major Uses of Copper: Consumer and General Products Major Uses of Copper: Usage by EndUse Sector and Region, 2009 Chapter 5: Copper Recycling Copper Recycling Rate Definitions Global Copper Recyclables Use, 20022008 ICSG Global Copper Scrap Research Project The Flow of Copper ANNEX World Copper Production and Usage, 19602009
25 26 27 28 29 30 31 32 33 34 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 53 53
Chapter 1: Cu Basics
What is Copper?
Copper is a malleable and ductile metallic element that is an excellent conductor of heat and electricity as well as being corrosion resistant and antimicrobial. Copper occurs naturally in the Earths crust in a variety of forms. It can be found in sulfide deposits (as chalcopyrite, bornite, chalcocite, covellite), in carbonate deposits (as azurite and malachite), in silicate deposits (as chrysycolla and dioptase) and as pure "native" copper. Copper also occurs naturally in humans, animals and plants. Organic life forms have evolved in an environment containing copper. As a nutrient and essential element, copper is vital to maintaining health. Life sustaining functions depend on copper. Copper and copperbased alloys are used in a variety of applications that are necessary for a reasonable standard of living. Its continued production and use is essential for society's development. How society exploits and uses its resources, while ensuring that tomorrow's needs are not compromised, is an important factor in ensuring society's sustainable development.
Copper is one of the most recycled of all metals. It is our ability to recycle metals over and over again that makes them a material of choice. Recycled copper (also known as secondary copper) cannot be distinguished from primary copper (copper originating from ores), once reprocessed. Recycling copper extends the efficiency of use of the metal, results in energy savings and contributes to ensuring that we have a sustainable source of metal for future generations. The demand for copper will continue to be met by the discovery of new deposits, technological improvements, efficient design, and by taking advantage of the renewable nature of copper through reuse and recycling. As well, competition between materials, and supply and demand principles, contribute to ensuring that materials are used efficiently and effectively. Copper is an important contributor to the national economies of mature, newly developed and developing countries. Mining, processing, recycling and the transformation of metal into a multitude of products creates jobs and generates wealth. These activities contribute to building and maintaining a country's infrastructure, and create trade and investment opportunities. Copper will continue to contribute to societys development well into the future.
Images courtesy of the Copper Development Association.

Key Physical Properties of Copper
Copper Properties and Benefits

Chemical Symbol Atomic Number Atomic Weight Density Melting point Specific Heat cp (at 293 K) Thermal conductivity Coefficient of linear expansion Young's Modulus of Elasticity Electrical Conductivity (% IACS) Crystal Structure
Cu
29 63.54 8960 kg m-3 1356 K 0.383 kJ kg-1 K-1 394 W m-1 K-1 16.5 x 10-6 K-1 110 x 109 N m-2 1.673 x 10-8 ohm-m Face-Centered Cubic
But coppers benefits extend beyond mechanical characteristics: Copper is essential to the health of plants, animal and humans. Deficiencies, as well as excesses, can be detrimental to health. Antimicrobial Properties. Due to coppers antimicrobial properties, copper and copper alloy products can be used to eliminate pathogens and reduce the spread of diseases. Recycling. Copper is one of the most recycled of all metals. Virtually all products made from copper can be recycled and recycled copper loses none of its chemical or physical properties. Energy Efficiency. Copper can improve the efficiency of energy production and distribution systems.
Copper makes vital contributions to sustaining and improving society. Copper's chemical, physical and aesthetic properties make it a material of choice in a wide range of domestic, industrial and high technology applications. Alloyed with other metals, such as zinc (to form brass), aluminum or tin (to form bronzes), or nickel, for example, it can acquire new characteristics for use in highly specialized applications. In fact, society's infrastructure is based, in part, on copper.
Selected Copper Definitions

Anode. The positive terminal in an electrolytic cell where electrons leave a device to enter the external circuit. A copper anode at 99 percent purity will dissolve. Blister. The product of a converting furnace. It is an intermediate, more concentrated (with respect to the desired metal) material than matte, from which it is made, and is usually transferred to another furnace for further concentration. Cathode. The negative terminal in an electrolytic cell where copper is plated during electrowinning or electrolytic refining. Copper so plated is referred to as cathode and is generally about 99.99 percent pure. Contained Copper. Contained copper is defined as the analytical amount of copper outputted in concentrates and precipitates. Copper concentrate. A product of flotation milling. It composes sulfide minerals and entrained material and contains onethird each copper, iron, and sulfur. It can be processed pyrometallurgically in a smelter to produce matte or hydrometallurgically (pressure leaching) to produce pregnant leach solution, both products requiring further processing to obtain copper metal. Direct melt scrap. Direct melt, or Remelt scrap is secondary material that can be used directly in a furnace without cleanup through the use of fluxes and poling and rerefining. Electrorefining. An electrolytic refining process where less pure copper anode are dissolved, and highpurity copper is plated at the cathode.
Electrowinning. An electrolytic refining process where the anode is inert, and rich (copperloaded) electrolyte continually replaces lean (copperdepleted) electrolyte as copper is plated at the cathode. Firerefined copper. The product of a firerefining furnace. It is an intermediate, more concentrated (with respect to the desired metal) material than blister, from which it is made. Firerefined copper contains about 99 percent copper, the exact percentage depending on the process parameters. Primary copper. Copper extracted from ores and recovered as copper metal or copperbearing chemicals. Secondary refined material. Secondary refined material represents scrap that has been firerefined, or that has been converted to anode at the smelter level and then electrolytically refined. Solvent extraction. A method of separating one or more metals from a leach solution by treating with a solvent that will extract the required metal, leaving the others. The metal is recovered from the solvent by further treatment. Stocks. ICSG reports refined copper stocks as those held by the exchanges, consumers, producers and governments. Merchant stocks are included where it is certain that these are nonduplicative to those already reported. Only refined products at plant sites are included. Items such as wire rod, tube and other semifabricated forms are not included. Usage. Copper usage represents refined copper used by semifabricators. Usage data is either directly reported, or ICSG estimates an apparent usage using the following formula: Refined copper production + refined imports refined exports + refined beginning stocks ending stocks.
Sources: ICSG and USGS.
Copper in History C Archa aeological eviden demonstrates that copper was one of the fir metals used by humans and was used at least 10,000 nce rst d
years ago for items suc as coins and ornaments in w ch western Asia. Du uring the prehistoric Chalcolith Period (der hic rived from chalkos the Greek wor for copper), man discovered h s, rd m how to extract and use copper to produce ornam o ments and imple ements. As early as the 4th to 3rd m s millennium BC, workers extract copper from Spain's Huelva region. ted The dis scovery that copp per, when alloye with tin, prod ed duces bronze, le to the Bronze Age, c. 2,500 BC. Israel's Tim Valley ed e mna provide copper to the Pharaohs (an Egyptian papyr records the use of copper to treat infection and to sterili water). ed e rus o ns ize Cyprus supplied much of the Phoenic h cian, Greek and Roman needs f copper. "Cop for pper" is derived from the latin Cyprium, d literally Cyprian metal The Greeks of Aristotle's era w y l. f were familiar wi brass as a va ith alued copper all loy. In South Am merica, the pre-Columbian Maya, A Aztec and Inca civilizations exp ploited copper, i addition to go and silver. D in old During the Mid ddle Ages, copper a bronze work flourished in China, India an Japan. and ks nd The dis scoveries and in nventions relatin to electricity and magnetism of the late 18t and early 19 centuries by scientists ng m th 9th y such as Ampere, Farad and Ohm, and the products manufactured from copper, he s day a s elped launch the Industrial Re e evolution and pro opel copper into a new era. Tod o day, copper con ntinues to serve society's needs. Although copp has been in use for at per least 10 0,000 years, innovative applicat tions for copper are still being d developed as evi idenced by the d development of t copper the chip by the semi-conductors industry.
Images courtesy o the British Museu the Copper Development Association and ICSG. of um,
Copper Today
The global demand for copper continues to grow: world refined usage has surged by around 300% in the last 50 years thanks to expanding sectors such as electrical and electronic products, building construction, industrial machinery and equipment, transportation equipment, and consumer and general products. Some of the highlights of 2009 copper production and usage are listed below. In the chapters that follow, more indepth information is presented on copper production, trade, usage and recycling. For the most uptodate information on the global copper market, please visit our website at www.icsg.org.
Copper Production Highlights

Preliminary figures indicate that global copper mine production in 2009 reached over 15.7 million tonnes. The largest producer of mined copper was Chile (nearly 5.4 million tonnes).
Copper Usage Highlights

Refined copper usage (usage by semis plants or the first users of copper) in 2009 reached nearly 18.2 million tonnes. China was also the largest consumer of refined copper in 2009 with apparent usage of over 7 million tonnes. According to the International Copper Association (ICA), usage of copper in enduse products totaled over 22 million tonnes last year. ICA figures indicate that electrical power was the largest copper end use sector last year, followed by industrial use, power utility, and consumer and general products. New copper applications being developed include antimicrobial copper touch surfaces, leadfree brass plumbing, high tech copper wire, heat exchangers, and new consumer products as well.
Smelter production in 2009 reached over 14.5 million tonnes. China was the largest producer of blister & anode in 2009 (over 3.4 million tonnes)
Refinery Production in 2009 increased to nearly 18.4 million tonnes, including 2.9 million tonnes of secondary refined production.
Images courtesy of CDA and Luis Hernn Herreros from www.visnu.cl, Copyright Anglo American (Faena Los Bronces y Mantos Blancos Chile).
Chapter 2: Copper Production

How is Copper Produced?
Geologists look for signs and/or anomalies that would indicate the presence of a mineral deposit. Under the right geological, economic, environmental and legal conditions, mining can proceed. Primary copper production starts with the extraction of copperbearing ores. There are three basic ways of copper mining: surface, underground mining and leaching. Openpit mining is the predominant mining method in the world. After the ore has been mined, it is crushed and ground followed by a concentration by flotation. The obtained copper concentrates typically contain around 30% of copper, but grades can range from 20 to 40 per cent. In the following smelting process, sometimes preceded by a roasting step, copper is transformed into a matte containing 5070% copper. The molten matte is processed in a converter resulting in a socalled blister copper of 98.599.5% copper content. In the next step, the blister copper is fire refined in the traditional process route, or, increasingly, remelted and cast into anodes for electrorefining.
The output of electrorefining is refined copper cathodes, assaying over 99.99% of copper. Alternatively, in the hydrometallurgical route, copper is extracted from mainly low grade oxide ores and also some sulphide ores, through leaching (solvent extraction) and electrowinning (SXEW process). The output is the same as through the electrorefining route refined copper cathodes. ICSG estimates that in 2009, refined copper production from SXEW represented 18% of total copper refined production. Refined copper production derived from mine production (either from metallurgical treatment of concentrates or SXEW) is referred to as primary copper production, as obtainable from a primary raw material source. However, there is another important source of raw material which is scrap. Copper scrap derives from either metals discarded in semis fabrication or finished product manufacturing processes (new scrap) or obsolete endoflife products (old scrap). Refined copper production attributable to recycled scrap feed is classified as secondary copper production. Secondary producers use processes similar to those employed for primary production. ICSG estimates that in 2009, at the refinery level, secondary copper refined production reached around 16% of total copper refined production.
Copper Mine Production

World Copper Mine Production, 19002009
(thousand metric tonnes) Source: ICSG
16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
0 19 0 0 19 4 0 19 8 1 19 2 1 19 6 2 19 0 2 19 4 2 19 8 3 19 2 3 19 6 4 19 0 4 19 4 4 19 8 5 19 2 5 19 6 6 19 0 6 19 4 6 19 8 7 19 2 7 19 6 8 19 0 8 19 4 8 19 8 9 19 2 9 20 6 0 20 0 0 20 4 08 19
Concentrates
SX-EW
Since 1900, when world production was less than 500 thousand tonnes , world copper mine production has grown by around 4% per year to reach nearly 16 million tonnes in 2009. SXEW production, virtually nonexistent before the 1960s, reached nearly 3.3 million tonnes in 2009. International Copper Study Group 8

Copper Mine Production by Region, 1960, 1980 & 2009p
(Thousand metric tonnes) Source: ICSG 8000 Thousand Metric Tonnes Copper 7000 6000 5000 4000 3000 2000 1000 0 Africa Asia Europe Latin America North America Oceania 1960 1980 2009p
From less than 750 thousand tonnes in 1960, copper mine production in Latin America surged to just over 7 million tonnes last year.
International Copper Study Group 9

Copper Mine Production by Country: Top 20 Countries in 2009p
(Thousand metric tonnes) Source: ICSG
Chile Peru United States China Indonesia Australia Russian Fed. Zambia Canada Poland Kazakhstan Congo Iran Mexico Brazil Papua New Guinea Argentina Mongolia Laos South Africa
1,000
2,000
3,000
4,000
5,000
6,000
Chile accounted for over onethird of world copper mine production in 2009 with mine output of nearly 5.4 million tonnes.
Top 20 Copper Mines by Capacity, 2010

Thousand metric tonnes Source: ICSG
Rank
1 2 3 4 5 6 7 7 9 10 10 10 13 14 15 16 17 18 19 20 Escondida Codelco Norte
(includes Chuquicamata, Radomiro Tomic, Mina Ministro Hales project)
Mine
Country
Chile Chile Indonesia Chile Chile
Owner(s)
BHP Billiton (57.5%), Rio Tinto Corp. (30%), Japan Escondida (12.5%) Codelco P.T. Freeport Indonesia Co. (PT-FI), Rio Tinto Anglo American (44%), Xstrata plc (44%), Mitsui + Nippon (12%) Codelco Chile Norilsk Nickel BHP Billiton (33.75%), Teck (22.5%), Xstrata plc (33.75%), Mitsubishi (10%) Antofagasta Plc (60%), Nippon Mining (25%), Mitsubishi Materials (15%) Freeport-McMoRan Copper & Gold Inc./Sumitomo Kennecott (Rio Tinto) PT Pukuafu 20%, Newmont 41.5%, Sumitomo Corp., Sumitomo Metal Mining & Mitsubishi Materials 31.5%, PT Multi Daerah Bersaing 7% Codelco Chile First Quantum Minerals Ltd (80%), ZCCM (20%) Anglo American (100%) Kazakhmys (Samsung) BHP Billiton KGHM Polska Miedz S.A. National Iranian Copper Industry Co. BHP Billiton Mexicana de Cobre S. A. (Grupo Mexico)
Source
Concs & SX-EW Concs & SX-EW Concentrates Concs & SX-EW Concs & SX-EW Concentrates concentrates concentrates Concs & SX-EW Concentrates Concentrates concentrates Concs & SX-EW Concs & SX-EW concentrates Concs & SX-EW concentrates Concs & SX-EW SX-EW Concs & SX-EW
Capacity
1,300 920 780 520 454 430 400 400 390 280 280 280 270 241 230 225 220 204 200 195
Grasberg Collahuasi El Teniente
Taimyr Peninsula (Norilsk/ Talnakh Russia Mills) Antamina Los Pelambres Morenci Bingham Canyon Batu Hijau Andina Kansanshi Los Bronces Zhezkazgan Complex Olympic Dam Rudna Sarcheshmeh Spence La Caridad Peru Chile United States United States Indonesia Chile Zambia Chile Kazakhstan Australia Poland Iran Chile Mexico
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Constraints on Copper Supply

With copper concentrate in strong demand, there has been growing interest in understanding the obstacles that can prevent copper mine supply from coming onstream. During 20082009, the ICSG Secretariat conducted a project on Constraints on New Copper Supply Coming On Stream, with the final project report completed in October 2009. Below are some of the operational and financial constraints identified from the study. For more information about ICSG research related to constraints on copper supply, please contact the ICSG Secretariat at mail@icsg.org
Energy: coal is the fuel chosen to power main copper mines and processes climate change may increase costs. Shipping costs: not an issue for copper... for now Sulphuric acid supply and price: 16% cost factor for SXEW projects Skilled labor: open labor markets would help address this constraint Labor strikes: tend to increase when refined prices are high and GDP is growing faster, but tend to be longer and less frequent in cool economic times and also when copper prices are down High domestic costs if there is dutch disease (resulting in higher exchange rates due in part to strong exports) Rate between imported inputs and domestic input costs affected by the currency strength of the producer Market power/concentration: risks have moved to the import demand side versus export supply side in recent years Peace and security is also a key factor
Falling Ore Grades: a serious issue in developed copper areas such as the USA and Chile Project finance: cost of capital is a central factor. High interest rates may reduce supply significantly Capital cost overruns: in the past. underestimations of US dollar inflation was source of many cost overruns Tax & investment regimes: recent research indicates these are less important than geological endowments Water supply: a critical issue in dry mining districts
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Copper Smelter Production

World Copper Smelter Production, 1976-2009p
15,000
12,500
10,000
7,500
5,000 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
Primary Feed
Secondary Feed
Smelting is the pyrometallurgical process used to produce copper metal. In 2009, world copper smelter production reached 14.5 million tonnes. Recently, the trend to recover copper directly from ores through leaching processes has been on the increase. Primary smelters use mine concentrates as their main source of feed (although some use copper scrap as well). Secondary copper smelters use copper scrap as their feed.
Trends in Copper Smelting Capacity, 19952010

20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 -
Thousand tonnes copper
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Flash/Continuous
Reverb/Blast/Rotary
Electric
Modified Reverb/Convert
Low Grade EW
14

Copper Smelter Production by Region, 1990-2009p
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

19 90 19 91 19 92 19 93 19 94 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09
Africa
America
Asia
Europe
Oceania
Asias share of world copper smelter output jumped from 27% in 1990 to 52% in 2009 as smelter production in China expanded rapidly.

Copper Smelter Production by Country: Top 20 Countries in 2009p
Thousand metric tonnes Source: ICSG China Japan Chile Russian Fed. India United States Germany Korean Rep. Poland Australia Kazakhstan Canada Peru Zambia Indonesia Bulgaria Spain Iran Philippines Brazil
500
1,000
1,500
2,000
2,500
3,000
3,500
In 2009, China accounted for around 24% of world copper smelter output, followed by Japan (11%), Chile (10%) and the Russian Federation (5%).
Top 20 Copper Smelters by Capacity, 2010

Rank
1 2 3 4 4 4 7 7 7 10 11 12 13 14 15 16 16 18 19 19 19 19
Smelter
Guixi (smelter) Birla Copper (Dahej) Codelco Norte (smelter) Saganoseki/ Ooita (smelter) Hamburg Besshi/ Ehime (Toyo) Norilsk (Nikelevy, Medny) Jinchuan (smelter) El Teniente (Caletones) Altonorte (La Negra) Sterlite Smelter (Tuticorin) Ilo Smelter Yunnan Onsan II Onahama/ Fukushima Huelva Garfield (smelter) Naoshima/ Kagawa (smelter) Mount Isa (smelter) La Caridad (smelter) Onsan I Gresik
Country
China India Chile Japan Germany Japan Russia China Chile Chile India Peru China Korean Republic Japan Spain United States Japan Australia Mexico Korean Republic Indonesia
Operator/Owner(s)
Jiangxi Copper Corp. Birla Group Codelco Pan Pacific Copper Co. Ltd Aurubis Sumitomo Metal Mining Co. Ltd. Norilsk G-M Jinchuan Non- Ferrous Metal Co. Codelco Chile Xstrata plc Vedanta Southern Copper Corp. (Grupo Mexico 75.1%) Yunnan Copper Industry Group (Local Government) LS-Nikko Co. (LS, Nippon Mining) Mitsubishi Materials Corp. (49.29%), Dowa Metals & Mining Co. Ltd.(31.15%), Furukawa Metals & Resources Co. Ltd. (12.67%) Atlantic Copper S.A. (Freeport McMoran) Kennecott (Rio Tinto) Mitsubishi Materials Corp. Xstrata plc Mexicana de Cobre S. A. (Grupo Mexico) LS-Nikko Co. (LS, Nippon Mining) Mitsubishi (75%), Freeport (25%) Outokumpu Flash
Process
Capacity
900 500 460 450 450 450 400 400 400 390 380 360 350 340 322 320 320 306 300 300 300 300
Outokumpu Flash, Ausmelt, Mitsubishi Continuous Outokumpu/ Teniente Converter Outokumpu Flash Outokumpu, Contimelt, Electric Outokumpu Flash Reverb, Electric, Vanyukov Reverberatory/ Kaldo Conv. Reverberatory/ Teniente Conv. Noranda Continuous Isasmelt Process Isasmelt Process Isasmelt Process Mitsubishi Continuous Reverberatory Outokumpu Flash Kennecott/ Outokumpu Mitsubishi Continuous Isasmelt Process Outokumpu/ Teniente Converter Outokumpu Flash Mitsubishi Flash
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Refined Copper Production

World Refined Copper Production, 19602009p
20,000 17,500 15,000 12,500 10,000 7,500 5,000 2,500 0 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008
Refinery Primary
Refinery Secondary
Refinery SX-EW
With the emergence of solvent extraction-electrowinning (SX-EW) technology, refined copper produced from leaching ores has been on the rise, increasing from less than 1% of world refined copper production in the late 1960s to 18% of world output in 2009. International Copper Study Group 18

Trends in Refined Capacity, 1995-2010
28,000 26,000 24,000 22,000 Thousand tonnes copper 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Thousand metric tonnes Source: ICSG
Electrolytic
Electrowinning
Fire Refining
This chart shows world copper refinery capacity by refining process. The ratio between production and capacity is called the capacity utilization rate. At around 78% in 2009, the world refinery capacity utilization rate was lower than in recent years. International Copper Study Group 19
Refined Copper Production by Region, 19902009p

9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09
Africa
America
Asia
Europe
Oceania
Region with the highest output of refined copper in 1990: the Americas (4,250 kt), followed by Europe (3,004 kt) Leading region in the world in 2009: Asia (8,050 kt)
Refined Copper Production by Country: Top 20 Countries in 2009p

China Chile Japan United States Russian Fed. India Germany Korean Rep. Poland Australia Peru Zambia Belgium Kazakhstan Canada Spain Indonesia Mexico Brazil Iran
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
21
Top 20 Copper Refineries by Capacity, 2010

Rank 1 2 2 4 5 6 6 8 9 9 11 12 12 12 15 16 16 16 19 20 20 Guixi Yunnan Copper Birla Chuquicamata Refinery Codelco Norte (SX-EW) Toyo/Niihama (Besshi) Amarillo El Paso (refinery) Jinchuan Las Ventanas Hamburg (refinery) Sterlite Refinery Pyshma Refinery CCR Refinery (Montreal) Ilo Copper Refinery Jinlong (Tongdu) (refinery) Morenci (SX-EW) Escondida (SX-EW) Olen Onsan Refinery I Norilsk Refinery Refinery Country China China India Chile Chile Japan United States United States China Chile Germany India Russia Canada Peru China United States Chile Belgium Korean Republic Russia Jiangxi Copper Corporation Yunnan Copper Industry Group (64.8%) Birla Group Hidalco Codelco Codelco Sumitomo Metal Mining Co. Ltd. Grupo Mexico Freeport-McMoRan Copper & Gold Inc. Jinchuan Non Ferrous Co. Codelco Aurubis Vedanta Uralelectromed (Urals Mining & Metallurgical Co.) Xstrata plc Southern Copper Corp. Tongling NonFerrous Metal Corp. 52 %, Sharpline International 13%, Sumitomo Corp. 7.5%, Itochu Corp. 7.5% Freeport-McMoRan Copper & Gold Inc./Sumitomo BHP Billiton (57.5%), Rio Tinto Corp. (30%), Japan Escondida (12.5%) Aurubis LS-Nikko Co. (LS, Nippon Mining) Norilsk Copper Owner(s) Process Electrolytic Electrolytic Electrolytic Electrolytic Electrowinning Electrolytic Electrolytic Electrolytic Electrolytic Electrolytic Electrolytic Electrolytic Electrolytic Electrolytic Electrolytic Electrolytic Electrowinning Electrowinning Electrolytic Electrolytic Electrolytic Capacity 900 500 500 490 470 450 450 415 400 400 395 380 380 380 360 350 350 350 345 330 330
22
Semis Production
Copper and Copper Alloy and Casting Production, 19802008
27,000 24,000 21,000 18,000 15,000 12,000 9,000 6,000 3,000 0
1980
1984
1988
1992
1996
2000
2004
2008
Copper Semis
Copper Alloy Semis
Other Semis
Foundry Castings
Semis fabricators process refinery shapes such as cathodes, wire bar, ingot, billet slab and cake into semifinished copper and copper alloy products using both unwrought copper materials and direct melt scrap as raw material feed. Semis fabricators are considered to be the first users of refined copper and include ingot makers, master alloy plants, wire rod plants, brass mills, alloy wire mills, foundries and foil mills.

Copper and Copper Alloy Semis and Casting Production by Region, 1980 & 2008
14,000
12,000
10,000
8,000
1980 2008
6,000
4,000
2,000
0 Africa Asia Europe North America Oceania South America
Asia accounted for 58% of semis production in 2008, or more than 13.4 million metric tonnes, up from 22% in 1980.
Copper & Copper Alloy Semis Capacity by Region & Product

Semis Production Capacity by Region, 2010 (%)
Source: ICSG
Russian Fed. & Central Asia 5%+ Middle East 5% Africa 1%
Semis Production Capacity by Product, 2010 (%)

Source: ICSG
Powder 0.4% Foil 1.1% Castings 0.4%
s 3% Ingot
South Asia & Oceania 9% North Asia (ex-China) 14%
Mainland China 30%
Cu Alloy Wire 6%
Cu & Cu Alloy Tubes 13%
WireRod 49%
Rods, Bars and Sections (RBS) 13%+
Americas 14%
EU27, Norway & Switzerland 22%
Plate, Sheet & Strips (PSS) 15%
In 2010, China accounted for the largest share of world semis capacity production (30%) and the largest number of semis plants (498).
Wire rod plants are estimated to have accounted for just under half of all first use capacity in 2010, or nearly 19.6 Mt.
25
Copper and Copper Alloy Semis Production Capacity by Country: Top 20 Countries, 2010
Thousand metric tonnes Source: ICSG China United States Germany Japan Korean Rep. Italy India Taiwan (China) Russian Turkey Rest of World France Brazil Belgium Spain Thailand Indonesia Mexico Poland Iran
2,000
4,000
6,000
8,000
10,000
12,000
14,000
26
Chapter 3: Copp Trade C per e

Copper products a C across the value c chain are traded internationally. O i Often, co ountries where upstream cop pper production capacity exc n ceeds downstream production capacity w import the raw materials neede to will w ed meet their produc m ction needs, and v versa. Major product categori of vice ies co opper traded inte ernationally includ de: Copper concentrates Copper blister and anode thode and ingots Copper cat rap Copper scr and mis Copper sem
World Copp Exports by Pro per oduct Category, 20 009p

Thousand m metric tonnes copper (unless otherwise note ed) SG Source: ICS
Concentrates
Blister & Anode
Refined Copper
Copper Scrap /1 C
Copper & Copper Alloy r Semis /1
1,0 000
2,000
3,000
4,0 000
5,000
6,000
7,000
8,000
9,000
Copper powders a compounds a also traded glo C and are obally, but typica in ally much smaller qua m antities. In additi ional, copper is contained in end duse products that are traded globall including auto e ly omobiles, appliances, electronic equipm ment and other pr roducts. Changes in trade regulat tions, uch uties or export qu uotas, can have significant impact on s ts su as import du th international trade of coppe For more inf he er. formation about the t in nternational trade of copper and changes in regulations that can a e affect th trade of coppe please contact the ICSG Secretariat at mail@icsg. 1 he er, .org
World Copp Imports by Pro per oduct Category, 2 2009p

Thousand m metric tonnes copper (unless otherwise not ted) CSG Source: IC
Concentrates
Blister & Anode B
Refined Copper R
Copper Scrap /1 C
Image courtesy of the Copper Development Association.

1
Copper & Copper Alloy Semis /1 S
1,0 000
2,000
3,000
4,000 4
5,000
6,000
7,000
8,000
9,000
Gross metal weight t.
27 2
Major International Trade Flows of Copper Ores and Concentrates1

Major Exporters of Copper Ores and Concentrates, 2009 1. Chile 2. Peru 3. Indonesia 4. Australia 5. Canada 6. Brazil 7. Kazakhstan 8. USA 9. Argentina 10. Mongolia Major Importers of Copper Ores and Concentrates, 2009 1. China 2. Japan 3. India 4. Korean Rep. 5. Germany 6. Spain 7. Philippines 8. Bulgaria 9. Brazil 10. Sweden
Figure is intended to illustrate trade flows but not actual trade routes.
28
The World Copper Factbook 2010 Major International Trade of Copper Blister and Anode1
Major Exporters of Copper Blister and Anode, 2009 1. Chile 2. Bulgaria 3. Canada 4. Netherlands 5. Spain 6. Turkey 7. Slovakia 8. Finland 9. USA 10. Philippines Major Importers of Copper Blister and Anode, 2009 1. Belgium 2. China 3. United States 4. Canada 5. Mexico 6. Netherlands 7. Korean Rep. 8. Australia 9. Austria 10. Turkey
29
The World Copper Factbook 2010 Major International Trade Flows of Refined Copper1
Major Exporters of Refined Copper, 2009 1. Chile 2. Zambia 3. Japan 4. Russia 5. Peru 6. Australia 7. Kazakhstan 8. Poland 9. Belgium 10. Netherlands Major Importers of Refined Copper, 2009 1. China 2. USA 3. Germany 4. Italy 5. Taiwan 6. Korean Rep. 7. Turkey 8. France 9. Netherlands 10. Thailand
30
Leading Exporters and Importers of SemiFabricated Copper Products, 2009

Thousand metric tonnes, Source: ICSG
1,200
Exporters
1,000
800
600
400
200
1,600 1,400 1,200 1,000 800 600 400 200 0
Ko I Ge Ch T F rea aiwa ranc taly rm i an na nR e n y ep .
C Ho U R S J B O S P ng nite ussi elgiu apan pain wed anad olan ther dS en s an d Ko a m tat ng es Fed.
Importers
S K I U M O T Ch U G Ho S F S A C ina nited taly ng erm ranc nited exic zech ustr pain witz haila orea inga ther erl a s n R por e Ko Re i a Ki n o Sta and nd ng ny e ep. p. gd te s om
31
The Global Copper Market and the Commodity Copper

Copper, as any other good or merchandise, is traded between producers and consumers. Producers sell their present or future production to clients, who transform the metal into shapes or alloys, so that downstream fabricators can transform these into different enduse products. One of the most important factors in trading a commodity such as copper is the settlement price for the present day (spot price) or for future days. Exchanges The role of a commodity exchange is to facilitate and make transparent the process of settling prices. Three commodity exchanges provide the facilities to trade copper: The London Metal Exchange (LME), the Commodity Exchange Division of the New York Mercantile Exchange (COMEX/NYMEX) and the Shanghai Metal Exchange (SHME). In these exchanges, prices are settled by bid and offer, reflecting the market's perception of supply and demand of a commodity on a particular day. On the LME, copper is traded in 25 tonne lots and quoted in US dollars per tonne; on COMEX, copper is traded in lots of 25,000 pounds and quoted in US cents per pound; and on the SHME, copper is traded in lots of 5 tonnes and quoted in Renminbi per tonne. More recently, mini contracts of smaller lots sizes have been introduced at the exchanges.
Exchanges also provide for the trading of futures and options contracts. These allow producers and consumers to fix a price in the future, thus providing a hedge against price variations. In this process the participation of speculators, who are ready to buy the risk of price variation in exchange for monetary reward, gives liquidity to the market. A futures or options contract defines the quality of the product, the size of the lot, delivery dates, delivery warehouses and other aspects related to the trading process. Contracts are unique for each exchange. The existence of futures contracts also allows producers and their clients to agree on different price settling schemes to accommodate different interests. Exchanges also provide for warehousing facilities that enable market participants to make or take physical delivery of copper in accordance with each exchange's criteria.
Average Annual Copper Prices (LME, Grade A, Cash), 19602009
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
6 9 3 2 5 8 1 0 4 7 0 3 6 9 2 5 20 0 19 6 19 6 19 6 19 6 19 9 19 8 19 7 19 7 19 7 19 8 19 8 19 9 19 9 19 9 20 0 20 0 8
US$ per tonne Source: ICSG
Current $
Constant 2005 $
32
Copper Stocks, Prices and Usage

3,000 2,925 2,850 2,775 2,700 2,625 2,550 2,475 2,400 2,325 2,250 2,175 2,100 2,025 1,950 1,875 1,800 1,725 1,650 1,575 1,500 1,425 1,350 1,275 1,200 1,125 1,050 975 900 825 750 675 600 525 450 375 300 225 150 75 0
Thousand metric tonnes and US cents/pound Source: ICSG
400 390 380 370 360 350 340 330 320 310 300 290 280 270 260 250 240 230 220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0
Thousand metric tonnes, copper
Jan 00
Jul 00
Jan 01
Jul 01
Jan 02
Jul 02
Jan Jul 03 03
Jan Jul 04 04
Jan 05
Jul 05
Jan 06
Jul 06
Jan Jul-07 07
Jan Jul-08 08
Jan Jul-09 Jan09 10
Exchanges Merchants Price LME (UScents/pound)
Producers Consumers 3 mth moving average copper usage seasonally adjusted
Price LME (US cents/pound)
33
Chapter 4: Copper Usage

How Is Copper Used?
Copper is shipped to fabricators mainly as cathode, wire rod, billet, cake (slab) or ingot. Through extrusion, drawing, rolling, forging, melting, electrolysis or atomization, fabricators form wire, rod, tube, sheet, plate, strip, castings, powder and other shapes. The fabricators of these shapes are called the first users of copper. The total use of copper includes copper scrap that is directly melted by the first users of copper to produce copper semis. Copper and copper alloy semis can be further transformed by downstream industries for use in end use products such as automobiles, appliances, electronics, and a whole range of other copperdependent products in order to meet societys needs. This section provides a range of information about refined copper usage, total use, major uses of copper and enduse. For the most uptodate information on refined copper usage, please visit the ICSG website at www.icsg.org
34
World Refined Copper Usage, 19002009p

20,000 17,500 15,000 12,500 10,000 7,500 5,000 2,500 0
19 00 19 04 19 08 19 12 19 16 19 20 19 24 19 28 19 32 19 36 19 40 19 44 19 48 19 52 19 56 19 60 19 64 19 68 19 72 19 76 19 80 19 84 19 88 19 92 19 96 20 00 20 04 20 08
Since 1900, demand for refined copper increased from less than 500 thousand tonnes to over 18 million metric tonnes in 2009 as demand over the period grew by an average of 4% per year.
35
Refined Copper Usage by Region, 1960, 1980 & 2009p

Thousand Metric Tonnes Copper
12,000 10,000 8,000 6,000 4,000 2,000 0 1960 1980 2009p
Africa
America
Asia
Europe
Oceania
Growth in refined copper usage has been especially strong in Asia, where demand has expanded more than five fold in less than 30 years.
World Refined Copper Usage* per Capita: 19502009p

Sources: ICSG and US Census Bureau
8,000,000,000
3.0
7,000,000,000
2.5
6,000,000,000
2.0 kg per person

5,000,000,000
population
4,000,000,000
1.5
3,000,000,000
1.0
2,000,000,000
0.5
1,000,000,000
0.0 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
1950
World Population
Refined Copper Usage per Capita
*Refined copper is consumed by semis fabricators or the first users of refined copper, including ingot makers, master alloy plants, wire rod plants, brass mills, alloy wire mills, foundries and foil mills. As a result, per capita consumption of refined copper refers to the amount of copper consumed by industry divided by the total population and does not represent consumption of copper in finished products per person.

25
Intensity of Refined Copper Use*

Sources: ICSG and International Monetary Fund
Belgium Taiwan (China)
Refined Copper Usage per Capita (kg/person)
20
Korean Rep. United Arab Emirates
15
Germany
10
Italy Saudi Arabia Chile China Egypt Mexico Peru Poland Spain EU-27 Japan Australia France Canada USA
Turkey Russian Fed. Brazil Portugal
0 0
India
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
GDP per Capita (2009 US$/person)

*Refined copper is consumed by semis fabricators or the first users of refined copper, including ingot makers, master alloy plants, wire rod plants, brass mills, alloy wire mills, foundries and foil mills. As a result, per capita consumption of refined copper refers to the amount of copper consumed by industry divided by the total population and does not represent consumption of copper in finished products per person. International Copper Study Group 38
Total Copper Usage, Including Copper Scrap, 20022008

25,000
TOTAL SCRAP
TOTAL SCRAP
TOTAL SCRAP
TOTAL SCRAP
TOTAL SCRAP
20,000
TOTAL SCRAP
TOTAL SCRAP
15,000
PRIMARY REFINED
PRIMARY REFINED
PRIMARY REFINED
PRIMARY REFINED
PRIMARY REFINED
PRIMARY REFINED
PRIMARY REFINED
10,000
5,000
0 2002
2003
2004
2005
2006
2007
2008
39
Major Uses of Copper: Electrical

Copper is the best non precious metal conductor of electricity as it encounters much less resistance compared with other commonly used metals. It sets the standard to which other conductors are compared. Copper is also used in power cables, either insulated or uninsulated, for high, medium and low voltage applications. In addition, copper's exceptional strength, ductility and resistance to creeping and corrosion makes it the preferred and safest conductor for commercial and residential building wiring. Copper is an essential component of energy efficient generators, motors, transformers and renewable energy production systems. Renewable energy
sources such as solar, wind, geothermal, fuel cells and other technologies are all heavily reliant on copper due to its excellent conductivity. ICSG, in partnership with the Common Fund for Commodities, the International Copper Association and the International Copper Promotion Council (India), is supervising the Transfer of Technology for High Pressure Copper Die Casting in India project. The project is designed to facilitate the transfer of technology related to the manufacture of rotors, motors and motor systems using more energy efficient high pressure copper die castings.
40
Major Uses of Copper: Electronics and Communications

Copper plays a key role in worldwide information and communications technologies. HDSL (High Digital Subscriber Line) and ADSL (Asymmetrical Digital Subscriber Line) technology allows for highspeed data transmission, including internet service, through the existing copper infrastructure of ordinary telephone wire. Copper and copper alloy products are used in domestic subscriber lines, wide and local area networks, mobile phones and personal computers. Semiconductor manufacturers have launched a revolutionary "copper chip." By using copper for circuitry in silicon chips, microprocessors are able to operate at higher speeds, using less energy. Copper heat sinks help remove heat from transistors and keep computer processors operating at peak efficiency. Copper is also used extensively in other electronic equipment in the form of wires, transformers, connectors and switches.
Images courtesy of the Copper Development Association and European Copper Institute.
41
The World Copper Factbook 2010 Major Uses of Copper: Construction

Copper and brass are the materials of choice for plumbing, taps, valves and fittings. Thanks in part to its aesthetic appeal, copper and its alloys, such as architectural bronze, is used in a variety of settings to build facades, canopies, doors and window frames. Unlike plastic tubing, copper does not burn, melt or release noxious or toxic fumes in the event of a fire. Copper tubes also help protect water systems from potentially lethal bacteria such as legionella. Copper fire sprinkler systems are a valuable safety feature in buildings. The use of copper doorknobs and plates exploits copper's biostatic properties to help prevent the transfer of disease and microbes. Copper roofing, in addition to being attractive, is well known for its resistance to extreme weather conditions. Major public buildings, commercial buildings and homes use copper for their rainwater goods and roofing needs. The telltale green patina finish, that gives copper the classic look of warmth and richness, is the result of natural weathering.
Images courtesy of the Copper Development Association and the International Copper Association. International Copper Study Group 42
Major Uses of Copper: Transportation

All major forms of transportation depend on copper to perform critical functions. Coppernickel alloys are used on the hulls of boats and ships to reduce marine biofouling, thereby reducing drag and improving fuel consumption. Automobiles and trucks rely on copper motors, wiring, radiators, connectors, brakes and bearings. Today, the average midsize automobile contains about 22.5 kg (50 lbs) of copper, while luxury cars on average contain around 1,500 copper wires totaling about 1.6 km (1 mile) in length. Electric and hybrid vehicles can contain even higher levels of copper. Copper's superior thermal conductivity, strength, corrosion resistance and recyclability make it ideal for automotive and truck radiators. New manufacturing technologies, processes and innovative designs are resulting in lighter, smaller and more efficient radiators. Copper is also used extensively in new generation airplanes and trains. New highspeed trains can use anywhere from 2 to 4 tonnes of copper, significantly higher than the 1 to 2 tonnes used in traditional electric trains.
Images courtesy of the Copper Development Association and the European Copper Institute.
43
Major Uses of Copper: Industrial Machinery and Equipment

Wherever industrial machinery and equipment is found, it is a safe bet that copper and its alloys are present. Due to their durability, machinability and ability to be cast with high precision and tolerances, copper alloys are ideal for making products such as gears, bearings and turbine blades. Copper's superior heat transfer capabilities and ability to withstand extreme environments makes it an ideal choice for heat exchange equipment, pressure vessels and vats. The corrosion resistant properties of copper and copper alloys (such as brass, bronze, and coppernickel) make them especially suitable for use in marine and other demanding environments. Vessels, tanks, and piping exposed to seawater, propellers, oil platforms and coastal power stations, all depend on copper's corrosion resistance for protection
44
The World Copper Factbook 2010 Major Uses of Copper: Consumer and General Products
From the beginning of civilization copper has been used by various societies to make coins for currency. Today, countries are replacing lower denomination bills with copperbased coins, as these coins last 10, 20 and even 50 times longer. In the United States, one cent coins and five cent coins contain 2.5% and 75% copper, respectively, while other U.S. coins contain a pure copper core and 75% copper face.1 In the recently expanded European Union, the Euro coins, first introduced in 2002, also contain copper. Copper and copperbased products are used in offices, households and workplaces. Computers, electrical appliances, cookware, brassware, and locks and keys are just some of the products exploiting copper's advantages.
In addition, in areas known to be copper deficient, copper is used by farmers to supplement livestock and crop feed.
Images courtesy of the International Copper Association and the Copper Development Association.
1
Source: U.S. Department of the Treasury.
45
Major Uses of Copper: Usage by EndUse Sector and Region, 2009

Basis: copper content, thousand metric tonnes Source: International Copper Association
2009 tonnes 000 China Japan South Korea India ASEAN Taiwan North America Latin America Western Europe Eastern Europe (excluding Russia Africa Rest of World World 7,873 1,222 766 920 863 435 2,468 1,194 3,133 751 464 534 1,477 22,099
46
Chapter 5: Copper Recycling

Copper is among the few materials that do not degrade or lose their chemical or physical properties in the recycling process. Considering this, the existing copper reservoir in use can well be considered a legitimate part of world copper reserves. In the recent decades, an increasing emphasis has been placed on the sustainability of material uses in which the concept of reuse and recycling of metals plays an important role in the material choice and acceptance of products. If appropriately managed, recycling has the potential to extend the use of resources, and to minimize energy use, some emissions, and waste disposal. Closing metal loops through increased reuse and recycling enhances the overall resource productivity and therefore represents one of the key elements of societys transition towards more sustainable production and consumption patterns. It is widely recognized that recycling is not in opposition to primary metal production, but is a necessary and beneficial complement. In 2008, ICSG estimates that 35% of copper consumption came from recycled copper. Some countries' copper requirements greatly depend on recycled copper to meet internal demands. However, recycled copper alone cannot meet society's needs, so we also rely on copper produced from the processing of mineral ores.
Images courtesy of the European Copper Institute. International Copper Study Group 47
Copper Recycling Rate Definitions

The recycling performance of copper-bearing products can be measured and demonstrated in various ways depending, among other things, on objectives, scope, data availability and target audience. The three International Non-Ferrous Metal Study Groups in conjunction with various metal industry associations agreed on the common definitions of the three following metal recycling rates: The Recycling Input Rate (RIR) measures the proportion of metal and metal products that are produced from scrap and other metal-bearing lowgrade residues. The RIR is mainly a statistical measurement for raw material availability and supply rather than an indicator of recycling efficiency of processes or products. The RIR has been in use in the metals industry for a long time and is widely available from statistical sources. Major target audiences for this type of metallurgical indicator are the metal industry, metal traders and resource policy makers. However, given structural and process variables, it may have limited use as a policy tool.
The Overall Recycling Efficiency Rate (Overall RER) indicates the efficiency with which end of life (EOL) scrap, new scrap, and other metal-bearing residues are collected and recycled by a network of collectors, processors, and metal recyclers. The key target audiences of this particular indicator are metal industry, scrap processors and scrap generators. The EOL Recycling Efficiency Rate (EOL RER) indicates the efficiency with which EOL scrap from obsolete products is recycled. This measure focuses on end-of-life management performance of products and provides important information to target audiences such as metal and recycling industries, product designers, life cycle analysts, and environmental policy makers.
48
The World Copper Factbook 2010 Global Copper Recyclables Use, 2002-2008
Americas Asia Europe Africa & Oceania World / Total Scrap Use Total scrap use year-on-year Secondary refined production Cu content of Direct Melt Refined Usage Total copper usage Recycling Input Rate (RIR) Recycling Input Rate Asia Europe North America Rest of the World Total World
2002 1,466 2,807 2,711 68 7,056 1,898 5,159 15,238 20,396 34.6% 2002 30.9% 44.4% 32.4% 16.3% 34.6%
2003 1,379 2,882 2,529 51 6,848 -3.0% 1,786 5,061 15,719 20,781 33.0% 2003 30.0% 41.6% 31.5% 14.0% 33.0%
2004 1,426 3,324 2,594 51 7,401 8.1% 2,069 5,331 16,845 22,176 33.4% 2004 31.7% 41.2% 30.5% 14.6% 33.4%
2005 1,429 3,575 2,469 55 7,536 1.8% 2,161 5,375 16,677 22,053 34.2% 2005 33.1% 41.5% 31.1% 16.6% 34.2%
2006 1,476 4,257 2,638 50 8,425 11.8% 2,613 5,812 17,058 22,869 36.8% 2006 37.7% 41.0% 33.2% 17.1% 36.8%
2007 1,493 4,304 2,579 61 8,445 0.2% 2,743 5,702 18,239 23,941 35.3% 2007 34.2% 41.3% 34.1% 18.8% 35.3%
2008 1,345 4,296 2,529 52 8,230 -2.6% 2,823 5,407 18,062 23,468 35.1% 2008 34.0% 42.7% 33.0% 16.3% 35.1%
49
ICSG Global Copper Scrap Research Project

Based on interest expressed by ICSG member countries, ICSG launched the copper scrap market project in 2007 in order to provide greater transparency on an increasingly vital component of the world copper market at a time when globalization is reshaping the copper scrap and copper alloy recycling business. The final report of the project was published in August 2010. Key drivers of the global scrap market are identified below as are some of the key project outputs. For more information about ICSG work related to copper scrap, please contact the ICSG Secretariat at mail@icsg.org
Key Drivers of the Global Copper Scrap Market Expanding Copper Mine Production and Refined Copper Substitution Industrialization and Economic Growth Prices o Copper Scrap Prices and Spreads o Refined Copper Prices and the Demand for Scrap China The Shift in Regional Scrap Processing Capacity Regulations on Recycling and Trade Technology
ICSG Global Copper Scrap Project Reports ICSG Global Copper Scrap Research Project Final Report (New!) Japan Scrap Market Report China Scrap Usage Survey China Domestic Scrap Generation 20102015 India Scrap Market China Scrap Market Report
50
The World Copper Factbook 2010 The Flow of Copper

Trade Concentrates/ Matte Blister/ Anode Refined Copper Alloy Ingot Alloy Metals Semis Net Trade
Mining
Production Wire rod SX/EW Refined Usage
Fabrication Wire rod plant / Wire mill Brass mill Foundry Chemicals Semis Supply
Mine
Smelter
Refinery New Scrap Low Grade Residues
Tailings
By-products/ slag/ashes
Other Plants
Scrap Recycling
Scrap for Smelting incl. low grade
Scrap for Refining
Hydromet. Plant
Direct Melt 987 refined
Ingot Maker scrap alloys
51
The World Copper Factbook 2010 The Flow of Copper (cont.)

Semis Import Manufacture Construction Product Supply E&E Equipment Ind. equipment Transport Consumer/ Gen. Other Uses Low grade from Fabr. Recycling losses new scrap Recycling New Scrap Recycling
Finished Products
Net Trade Product Use (Lifetime) Copper Reservoir in Use
EOL Products
(EOL Management adjusted for export/reuse after collection) End-of-Life Management C&D
Finished Products
EOL Products
INEW IEW
Abandoned/ Stored/ Reused End-of-Life Products
ELV WEEE MSW & Other Dissipative Uses
Disposal/ Other Uses
Old Scrap
Scrap & Low grade Net Trade
Other Metal Loops

52
The World Copper Factbook 2010 ANNEX World Copper Production and Usage, 1960-2009p
Thousand Metric Tonnes Source: ICSG
Mine Production 3,924 4,081 4,216 4,286 4,443 4,647 4,872 4,626 5,010 5,562 5,900 5,941 6,541 6,915 7,097 6,735 7,289 Refined Production 4,998 5,127 5,296 5,400 5,739 6,059 6,324 6,004 6,653 7,212 7,592 7,404 8,100 8,544 8,759 8,187 8,632 Refined Usage 4,738 5,050 5,048 5,500 5,995 6,193 6,445 6,195 6,523 7,137 7,291 7,296 7,942 8,740 8,310 7,445 8,539 Mine Production 7,444 7,306 7,371 7,230 7,721 7,745 7,843 8,138 8,288 8,266 8,592 8,775 9,084 9,226 9,372 9,497 9,553 Refined Production 8,884 9,030 9,200 9,261 9,573 9,319 9,541 9,440 9,455 9,920 10,148 10,512 10,908 10,804 10,686 11,042 11,249 Refined Usage 9,057 9,527 9,848 9,396 9,522 9,090 9,510 9,930 9,798 10,112 10,293 10,668 11,081 10,846 10,540 10,843 10,979 Mine Production 9,549 10,084 11,097 11,537 12,248 12,775 13,203 13,633 13,577 13,757 14,594 14,924 14,991 15,474 15,536 15,877 Refined Production 11,124 11,832 12,677 13,478 14,075 14,578 14,796 15,638 15,354 15,272 15,918 16,572 17,291 17,934 18,200 18,356 Refined Usage 11,420 12,059 12,636 13,103 13,519 14,301 15,185 15,014 15,210 15,717 16,833 16,683 17,058 18,239 18,056 18,186
1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976
1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009p
53

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2010 World Copper Factbook

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The World Copper Fac ctbook 2010 0

In nternational Cop pper Study Group p

The World Copper Factbook 2010

International Copper Study Group

The World Copper Factbook 2010

International Copper Study Group

The World Copper Factbook 2010

International Copper Study Group

The World Copper Factbook 2010

Images courtesy of the Copper Development Association.

International Copper Study Group

The World Copper Factbook 2010

Copper Properties and Benefits

International Copper Study Group

The World Copper Factbook 2010

Selected Copper Definitions

Sources: ICSG and USGS.

International Copper Study Group

The World Copper Fac ctbook 2010 0

In nternational Cop pper Study Group p

The World Copper Factbook 2010

Copper Production Highlights

Copper Usage Highlights

International Copper Study Group

The World Copper Factbook 2010

Chapter 2: Copper Production

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The World Copper Factbook 2010

Copper Mine Production

The World Copper Factbook 2010

The World Copper Factbook 2010

The World Copper Factbook 2010

Top 20 Copper Mines by Capacity, 2010

Grasberg Collahuasi El Teniente

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The World Copper Factbook 2010

Constraints on Copper Supply

International Copper Study Group

The World Copper Factbook 2010

Copper Smelter Production

The World Copper Factbook 2010

Trends in Copper Smelting Capacity, 19952010

Thousand tonnes copper

International Copper Study Group

The World Copper Factbook 2010

8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

The World Copper Factbook 2010

The World Copper Factbook 2010

Top 20 Copper Smelters by Capacity, 2010

International Copper Study Group

The World Copper Factbook 2010

Refined Copper Production

The World Copper Factbook 2010

The World Copper Factbook 2010

Refined Copper Production by Region, 19902009p

9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

The World Copper Factbook 2010

Refined Copper Production by Country: Top 20 Countries in 2009p

International Copper Study Group

The World Copper Factbook 2010

Top 20 Copper Refineries by Capacity, 2010

International Copper Study Group

The World Copper Factbook 2010