‘There is not enough copper supply out there to get us beyond the next five years’

Our latest ‘Critical Conversation’ podcast features an exclusive discussion with Don Lindsay (President and CEO, Teck) on the mining sector’s role in the energy transition, highlighting that an undersupply of copper threatens the pace of the transition and calling for all stakeholders including government and industry to work together to ensure we are meeting growing global demand for essential metals and minerals.

Don Lindsay is President and CEO of Teck Resources. Appointed as Teck CEO in 2005, Don is one of the longest serving CEOs among the major mining firms. Don also served as Chair of the International Council on Mining and Metals (ICMM) from 2017 to 2020, during which time he oversaw the establishment of the Global Industry Standard on Tailings Management. Previously, Don was President of CIBC World Markets, Head of Investment and Corporate Banking and Head of the Asia-Pacific region.

In this 30-minute conversation, recorded on 25 January 2022, Don shares thoughts on the potential for an impending supply gap to threaten the world’s ability to manufacture green technologies, the need for public-private collaboration to build transition-critical infrastructure, and the need to educate people on how essential mining is to everyday life.

The discussion was moderated by Daniel Litvin, Founder and Senior Partner of Critical Resource.

Among the key points raised by Don:  

• We need to focus on the facts, do the right thing and educate people. We simply can’t make the transition to a low-carbon economy without mined products. Most people take mining, minerals and metals for granted – but they don’t realise that if you can’t grow it, you have to mine it.
• There is not enough copper supply out there – the numbers are showing a supply-demand deficit of 4.5 million tonnes by 2030 for this metal that is critical for the transition to a low-carbon economy. We worry about supply crunches in every cycle, but it feels different this time.
• Meanwhile, copper demand carries on. We’re seeing a huge switch to electric vehicles, which requires 4 times the amount of copper as a gasoline one. Renewable energy systems can require 12 times more copper than traditional support so there’s going to be lots of demand.
• Government and industry need to take a multi-stakeholder approach to finding rapid solutions on climate change. For example, establishing private-public partnerships and creating nationwide carbon capture systems. It might not be the perfect solution, but climate change is real and we’re already seeing the consequences – so let’s get on with it and get things done.
• The pendulum swings back and forth on whether investors think companies should divest from certain commodities. We’ve seen some investors encourage companies to divest their carbon-related commodities, only to see these assets be taken up by less responsible operators. Now, these investors are encouraging companies to manage the assets until depletion.