Title: UNCTAD Declares Copper as Essential Resource for Electrifying Future Amid Supply Challenges
In its latest Global Trade Update, released this week, the United Nations Conference on Trade and Development (UNCTAD) has labeled copper as the "new strategic raw material" pivotal to an electrifying and digitizing global economy. With demand projected to surge by over 40% by 2040, the supply of copper faces significant strain, presenting a potential bottleneck for crucial technologies like electric vehicles, solar panels, and smart grids.
"Copper is no longer just a commodity,” states Luz María de la Mora, Director of the International Trade and Commodities Division at UNCTAD. Known for its exceptional conductivity and durability, copper is integral to powering homes, vehicles, and renewable infrastructures. However, developing new copper mines is a time-consuming and costly venture, often taking 25 years from discovery to operation. To meet 2030 demand estimates, an investment of around $250 billion and at least 80 new mining projects will be necessary.
Currently, over half of the world’s known copper reserves are concentrated in just five countries: Chile, Australia, Peru, the Democratic Republic of the Congo, and Russia, yet value-added production occurs predominantly in China. This geographical disparity prevents many developing nations from fully leveraging their copper resources.
Tariff escalation presents another challenge; while duties on refined copper are low, those on finished products can reach up to 8%, hindering investment in higher-value industries and locking countries into raw material roles. UNCTAD calls for governments to reduce trade restrictions and enhance regional value chains.
As mining projects struggle with lead times, copper recycling is becoming a critical solution, contributing nearly 20% to global refined output in 2023. UNCTAD emphasizes that investing in recycling could empower developing countries and promote a sustainable economy.
In summary, the report warns that copper is a "test case" for global trade systems facing surging demand for critical materials. Without coordinated strategies, developing nations risk missing crucial economic opportunities.
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