Modern Mining July 2024

typically heightens copper consumption. These regional trends were explored in research recently commissioned by the ICA. The research notes that major economic and population growth in India, and the associated urbanisation and growth of the industrial sector, is expected to influence copper use in the country, resulting in a compound annual growth rate (CAGR) for copper demand of 7% to 2040. Similarly, in the Association of Southeast Asian Nations (ASEAN), copper demand will be driven by population growth, urbanisation, and the region’s emerging status as a hub for global manufacturing, with a forecast CAGR of 6 per cent. Although these demographic and socio economic shifts underpin strong baseline copper demand, green energy transition efforts are increasingly contributing to its global consumption; copper cable and wire demand serves as a good benchmark for this. According to the ICA, whilst cable and wire demand in traditional applications is only projected to increase by 0.5 percent, it expects to see an 11 % demand growth from EVs and chargers, a 19% growth from grid expansion, and a 7% growth from renewable energy technologies. Overall, copper wire and cable use related to the green energy transition is expected to increase from 0.8Mt to 6.7Mt between 2020 and 2040. These burgeoning demand areas have spurred an impressive run for the red metal in commodities markets this year. Back in April, the Financial Times asserted that “industrial metals including copper and zinc have outperformed global stocks this year” – a trend that has continued into the summer months. The growing demand and strong price environment have incentivised base metals producers to seek supplementary exploration, development and production opportunities within the energy metals space. One such company is Central Asia Metals (CAML), a London listed miner which operates the Kounrad copper project in Kazakhstan and the Sasa zinc and lead mine in North Macedonia. With a cash in bank figure of $57.2 million, as of 31 December 2023, and the backdrop of the global green transition, the company has decided that now is the time to pursue growth opportunities across various stages of mine development. CAML has initially actualised this with some early-stage exploration and development investments. In 2023, the company formed CAML Exploration, or CAML X, an exploration subsidiary of the company that works with a team of early stage exploration geologists in Kazakhstan. So far, CAML has reportedly been awarded two exploration licences in the Central Asian nation and anticipates a strong first full exploration season for the new entity. Buoyed by projections that new mining projects will

CAML is actively reviewing exploration opportunities, as well as larger scale projects, to grow the company’s base metals portfolio.

be required to meet demand, CAML has continued its business development momentum, announcing in March that it intends to make an investment of £3 million in Aberdeen Minerals to acquire a 28.7% shareholding. The junior exploration company based – rather predictably – out of Aberdeen in Scotland, is actively exploring the Arthrath Project in Aberdeenshire. According to CAML, Aberdeen Minerals has already demonstrated the presence of scalable copper-nickel-cobalt mineralisation at Arthrath and is also overseeing several promising targets in the underexplored surrounding district. Crucially, CAML has identified an augmented exposure to the base metals market as a

prevailing factor in its investment decision making process, citing the importance of these metals in facilitating the green energy transition. This is also the motivation for the company pursuing a larger scale “accretive and potentially transformational” investment opportunity, which it hopes will provide value for shareholders whilst further drawing on its track record of success within the energy metals space, particularly with regards to copper production at Kounrad.

The International Copper Association (ICA) asserts that “one tonne of copper brings functionality to 40 cars, powers 100 000 mobile phones, enables operations in 400 computers and distributes electricity to 30 homes.”

These investments, whilst sitting at different stages on the Lassonde Curve, all share one similarity – they have been made with the long-term future of the company (and world) in mind. This perhaps highlights the bullishness of companies like CAML on the longevity of demand for energy metals. It’s no secret that a transition of this global magnitude can’t happen overnight, but, arguably, the first half of this year has indicated that the conditions for a prosperous energy metals sector are starting to propel the world towards a more achievable green pathway. 

JULY 2024 | www.modernminingmagazine.co.za  MODERN MINING  9