THE

WORLD COPPER
FACTBOOK
2007

International Copper Study Group

World Copper Factbook – Contents
The International Copper Study Group 2 Copper Mine Production, 1900-2006 33
Copper Mine Production by Region 34
CHAPTER 1: Copper and Society 3 Copper Mine Capacity by Region, 2006 35
Copper in History 4 Copper Mine Capacity, 1980 and 2006 36
Copper: Natural, Recyclable and Essential 5 Trade Flow of Copper Ores and Concentrates 37
From Ores to Products 6 Leading Exporters and Importers of Copper Ores and Concentrates, 2006 38
Properties of Copper 8 Top 20 Copper Mines by Capacity, 2006 39
Major Uses of Copper: Electrical 9 Copper Smelter Production 40
Major Uses of Copper: Electronics and Communications 10 Copper Smelter Production by Region 41
Major Uses of Copper: Construction 11 Trends in Copper Smelting Capacity, 1980-2006 42
Major Uses of Copper: Transportation 12 Copper Smelter Capacity, 2006 43
Major Uses of Copper: Industrial Machinery and Equipment 13 Trade Flow of Copper Blister and Anodes 44
Major Uses of Copper: Consumer and General Products 14 Leading Exporters and Importers of Copper Blister and Anodes, 2006 45
Major Uses of Copper: Usage by End-Use Sector, 2003 15 Top 20 Smelters by Capacity, 2006 46
Substitution: Copper vs its Competitors (by Major Use) 16 Refined Copper Production, 1960-2006 47
Refined Copper Production by Region 48
CHAPTER 2: Copper and the Environment 17 Trends in Refining Capacity, 1980-2006 49
Copper and Health 17 Refined Copper Capacity 50
Copper and the Environment 18 Trade Flow of Refined Copper 51
Copper Recycling 19 Leading Exporters and Importers of Refined Copper, 2006 52
Copper Recycling Flows 20 Top 20 Refineries by Capacity, 2006 53
Copper Recycling Rate Definitions 21 Copper Semis and Casting Production, 1980-2005 54
Global Copper Recyclables Use, 2000-2005 22 Copper Semis and Casting Production by Region 55
ICSG Copper Flow Model 23 Trends in First Use Capacity 56
End-of-Life Management of Copper Products 24 First Use Capacity by Region 57
Copper and Sustainable Development 25 Leading Exporters and Importers of Semi-fabricated Copper Products, 2006 58
Top 20 Copper Fabricating Plants by Capacity, 2006 59
CHAPTER 3: World Copper Usage 26
World Refined Copper Usage, 1900-2006 26 CHAPTER 5: The Commodity “Copper” in the Global Economy 60
Refined Copper Usage by Region 27 Exchanges 60
Refined Usage per Capita, 1950-2006 28 Copper Prices (LME, Grade A, Cash) 61
Intensity of Refined Copper Use 29 Copper Stocks by Sector 62
Total Copper Use (including Direct Melt Scrap), 2000-2005 30 Copper Stocks vs Price 63

CHAPTER 4: Copper Products Along the Value Chain 31 ANNEX 64

World Copper Production and Consumption, 1960-2006 31 World Copper Production and Consumption, 1960-2006 64
Copper Production and Usage by Country, 2006 32

1
The International Copper Study Group
The International Copper Study Group (ICSG), established in 1992, is an intergovernmental organization that serves to increase copper market
transparency and promote international discussions and cooperation on issues related to copper. The ICSG is the only forum solely dedicated
to copper where industry, its associations and governments can meet and discuss common problems and objectives. The current members and
observers of ICSG are Argentina, Belgium, Chile, China, the European Union, Finland, France, Germany, Greece, India, Italy, Japan,
Luxembourg, Mexico, the Netherlands, Peru, Poland, Portugal, the Russian Federation, Serbia, Spain, the United States and Zambia.

In order to fulfill its mandate, the Study Group has three objectives:
• Promote international cooperation on matters related to copper, such as health and the environment, research, technology transfer,
regulations and trade.
• Provide a global forum where industry and governments can meet and discuss common problems/objectives. The ICSG is the only inter-
government forum solely dedicated to copper. The meetings of the Study Group are open to government members, their industry advisors
and invited observers.
• Increase market transparency by promoting an exchange of information on production, consumption, stocks, trade, and prices of copper, by
forecasting production and consumption, and by assessing the present and future capacities of copper mines, plants, smelters and
refineries.

The International Copper Study Group maintains activities in four core areas: Statistics; Environment and Health; Economics; and serving as an
International Commodity Body. The ICSG maintains one of the world's most complete historical and current database providing access to
production, consumption and trade data for copper, copper products and secondary copper, price series, and information on copper mines and
plants. ICSG publishes the Copper Bulletin (monthly), the Copper Bulletin Yearbook (annual), the Directory of Copper Mines and Plants (semi-
annual), the Copper Mines and Plants Annual Service and the Directory of Copper and Copper Alloy Fabricators – First Use (annual).

The ICSG would like to thank the International Copper Association, the Copper Development Association, the International Wrought Copper
Council, the U.S. National Park Service, the British Museum and Mr. Luis Hernán Herreros Infante for their contributions to the Factbook.

The International Copper Study Group's World Copper Factbook © 2007 is published by the ICSG.

2
Chapter 1: Copper and Society
Of all the materials used by humans, copper has had one of the most profound effects on the
development of civilization. From the dawn of civilization until today, copper has made, and
continues to make, a vital contribution to sustaining and improving society. What makes copper and
copper-based products so valuable to us, and why do societies depend on them? Copper's
chemical, physical and aesthetic properties make it a material of choice in a wide range of
domestic, industrial and high technology applications. Copper is ductile, corrosion resistant,
malleable and an excellent conductor of heat and electricity. 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. For instance, copper is used for:

• conducting electricity and heat;

• communications;
• transporting water and gas;
• roofing, gutters and downspouts;
• protecting plants and crops, and as a feed supplement; and
• making statues and other forms of art.

Copper has been in use for at least 10,000 years, yet, it is still a high technology material, as evidenced by the development of the
copper chip by the semi-conductors industry.

Photo: Courtesy of National Park Service Digital Image Archives.

3
Copper in History

Archaeological evidence demonstrates that copper was one of the first metals used by humans and was used
around 10,000 years ago for items such as coins and ornaments in western Asia. During the prehistoric
Chalcolithic Period (derived from chalkos, the Greek word for copper), man discovered how to extract and use
copper to produce ornaments and implements. As early as the 4th to 3rd millennium BC, workers extracted
copper from Spain's Huelva region. The discovery that copper, when alloyed with tin, produces bronze, led to
the Bronze Age, c. 2,500 BC. Israel's Timna Valley provided copper to the Pharaohs (an Egyptian papyrus
records the use of copper to treat infections and to sterilize water). Cyprus supplied much of the Phoenician, Greek and Roman
needs for copper. "Copper" is derived from the latin Cyprium, literally Cyprian metal. While the Greeks of Aristotle's era were
familiar with brass, as a copper alloy, it was under Augustus' Imperial Rome that brass came into being. In South America, the pre-
Columbian Maya, Aztec and Inca civilizations exploited copper, in addition to gold and silver. During the Middle Ages, copper and
bronze works flourished in China, India and Japan. The discoveries and inventions relating to electricity and magnetism of the late
18th and early 19th centuries by scientists such as Ampere, Faraday and Ohm, and the products manufactured from copper, helped
launch the Industrial Revolution and propel copper into a new era.

Today, copper continues to serve society's needs.

Photo: Copper manilla (or bracelet), courtesy of the British Museum. Prior to the arrival of European traders, copper bracelets were used for making payments in West Africa
and, starting around the sixteenth century, became one of the standard trade currencies for traders in Africa and Europe (British Museum).

4
Copper: Natural, Recyclable and Essential
Copper occurs naturally in the Earth’s crust in a variety of forms. It can be found
in sulfide deposits1 (as chalcopyrite, bornite, chalcocite, covellite), in carbonate
deposits2 (as azurite and malachite), in silicate deposits3 (as chrysycolla and
dioptase) and as pure "native" copper.

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.

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.

1
Bound with sulfur.
2
Bound with carbon and oxygen.
3
Bound with silicon and oxygen.
Photo: ICSG.

5
From Ores to Products
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 copper-bearing ores. There are three basic ways of
copper mining: surface, underground mining and leaching. Open-pit 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 50-70% copper. The molten matte is processed in a converter resulting in a so-called blister
copper of 98.5-99.5% copper content. In the next step, the blister copper is fire refined in the traditional
process route, or, increasingly, re-melted and cast into anodes for electro-refining.

The output of electro-refining 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 (SX-EW process). The output
is the same as through the electro-refining route - refined copper cathodes. ICSG estimates that in 2006,
refined copper production from SX-EW represented 16% of total copper refined production, up from 11% ten
years ago.

Refined copper production derived from mine production (either from metallurgical treatment of concentrates or SX-EW) is referred to as
“primary copper production”, as obtainable from a primary raw material source. However, there is another important source of raw material

Photos: Luis Hernán Herreros from www.visnu.cl, © Copyright Anglo American (Faena Los Bronces y Matos Blancos – Chile).

6
which is scrap. Copper scrap derives from either metals discarded in semis fabrication or finished product manufacturing processes (“new
scrap”) or obsolete end-of-life 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 2006, at the
refinery level, secondary copper refined production may have reached around 15% of total copper refined production.

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. These copper and copper-
alloyed products are then shipped for final manufacturing, or distribution, to meet society's needs.

Valves Taps

Heat
Fasteners Tubes Brakes Exchangers

Paints Bearings

Consumer Building &

Radiations Sprinklers
Products Construction
Food
Fungicides
Wire Supplements
Powder
Rod

Recycl. Refined
Copper Copper
Fittings Locks & Copper
Nutrients Wiring
Keys Rods,
Ore
Bars, Castings
Transport- Sections Electrical &
tation Alloys Electronics
Plate,
Brassware Sheet, Screens
Electronic Strip, Foil
Connectors
Hardware

Industrial
Vessels Machinery Sheathing

Circuit Boards Coins Gears Motors

Roofing Cables

7
Properties of Copper
Excellent
Chemical Symbol Cu Conductor &
Non-Magnetic
Atomic number 29 Malleable Excellent
& Alloying
Atomic weight 63.54
Ductile Properties
Density 8960 kg m-3

Melting point 1356 K

Specific Heat cp (at 293 K) 0.383 kJ kg-1 K-1 Antimicrobial
Corrosion
-1 -1
& COPPER Resistant
Thermal conductivity 394 W m K Biostatic
Coefficient of linear expansion 16.5 x 10-6 K-1

Young's Modulus of Elasticity 110 x 109 N m-2

Machinable Strong
& Durable
Electrical Conductivity (% IACS1) 100 % Formable Recyclable
Excellent
Electrical Resistivity -8
1.673 x 10 ohm-m Heat
Transferer
Crystal Structure Face-Centered Cubic

1
International Annealed Copper Standard.

8
Major Uses of Copper: Electrical

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

Photos: Courtesy of the International Copper Association.

9
Major Uses of Copper: Electronics and Communications

Copper plays a key role in worldwide information and communications

technologies. ADSL (Digital Subscriber Line) technology allows for
high-speed 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.

Photos: Courtesy of the Copper Development Association.

10
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.

Photos: Courtesy of the Copper Development Association (left) and ICSG (right).

11
Major Uses of Copper: Transportation

All major forms of transportation depend on copper to perform critical functions.

Copper-nickel 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. The
average automobile contains 2 km of copper and alloy cables, while the quantity of copper in cars can
range from 20 kg for smaller cars to 45 kg for luxury and hybrid vehicles.1 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 high-speed trains can use
anywhere from 2 to 4 tonnes of copper, significantly higher than the 1 to 2 tonnes used in traditional
electric trains.

1
Source: French Ministry of Industry.
Photos: Courtesy of the Copper Development Association (top) and International Copper Association (middle and bottom).

12
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 copper-nickel) 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.

Photos: Courtesy of the Copper Development Association.

13
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 copper-based

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 copper-based products are used in offices, households and

workplaces. Computers, electrical appliances, decorative 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.

1
Source: U.S. Department of the Treasury.
Photos: Print artist (top left), International Copper Association (bottom left), and the Copper Development Association (top and bottom right).

14
Major Uses of Copper: Usage by End-Use Sector, 2003
Thousand metric tonnes
Source: International Wrought Copper Council

Japan United States

12% 8% 10% 10%

9%
18% 21%
33%

7%
22% 50%

Europe

5% 3%
10%

41%

31%

10%

Transport Electrical Building/Construction General Engineering Light Engineering Other

15
Substitution: Copper vs its Competitors (by Major Use)
Sources: International Copper Association and copper industry.

Substitute goods are those goods which can be used interchangeably with relative ease. In different applications, copper and other metals,
alloys and other products can serve as substitutes for each other for certain uses. Substitution can range from complete substitution from one
good to another to reduced usage (or failure to increase usage) of a given good or product. With the relatively high volatility of copper prices
over the last several years, increased attention has been paid to the issue of substitution. An overview of copper products and its competitors
by major end use is provided below.

Copper-bearing product Competing material/product Estimated global market size

(thousand metric tonnes)
Electrical wire and cable uses
Telecom wire (last mile) Wireless technology, optical fibre 800
Automotive wire/harness Aluminium wire, optical fibre 700
Transformer winding wire Aluminium wire 2,000
Motor winding wire in household Aluminium wire (total winding wire)
appliances
Building construction
Building wire Aluminium wire 1,400
Roofing and guttering Zinc sheet, aluminium sheet, composite copper sheet 500
Plumbing tube Composite copper tube, plastic tube, stainless steel 1,000
Boilers Stainless steel 200
ACR Tube (external tubes) Aluminium tube 700
(150 external)
Other Uses
Brass rod for machining (valves, Miniaturisation, lower copper alloys 1,800
fasteners, fittings)
Copper alloy sheet/strip for connectors, Lower copper alloys, plated materials, steel, 1,200
lead frames, buttons, decoration, furniture aluminium, plastic

16
Chapter 2: Copper and the Environment
Copper and Health
1. Copper is essential to plant, animal and human health. Deficiencies, as well as excesses, can be
detrimental to health.
2. In 1996, a World Health Organization associated agency, the International Program on Chemical
Safety, concluded that "there is greater risk of health effects from deficiency of copper intake than
from excess copper intake."
3. Copper is important in: the maintenance of the immune function and bone strength; the
development of red and white blood cells; cholesterol and glucose metabolism; homeostasis;
protection against oxidative and inflammatory damage; maintaining a healthy heart; transport and
adsorption of iron; and brain development.
4. Certain enzymes that are critical to the function of our body depend on copper.
5. Copper deficiency can cause problems. In children, copper deficiency can result in physical, metabolic and developmental
problems.
6. Population groups particularly at risk of having a copper deficiency are those with poor diets.
7. People with rare genetic disorders such as Menke's Disease (where the body has difficulty absorbing copper it needs),
Wilson's Disease (where the body has difficulty getting rid of copper it does not need) and Idiopathic Copper Toxicosis (similar
to the effects of Wilson's Disease) are susceptible to copper deficiencies or excesses.
8. In areas that benefit from copper tubing as a means to transport water, copper may be introduced in safe and minuscule
amounts into the water. This amount of copper can contribute to meeting dietary requirements.
9. Copper can kill or inhibit health threatening fungi, bacteria, and viruses, including water-borne organisms.

Photo: Courtesy of the International Copper Association.

17
Copper and the Environment
Copper is present naturally in the environment in a wide variety of forms and humans, animals and plants require copper for healthy
development. However, the relationships between copper, copper production and the environment can be complex. An overview of some key
environmental attributes of copper and issues related to copper production is provided below.

Pros:

• Recycling. Copper is one of the most recycled of all metals. Virtually all products made from copper can be recycled. Industry uses
recycled copper (also known as secondary copper) as a major source of raw material. In some instances, recycled copper can be
remelted and directly used without any further processing. In effect, copper can be considered as renewable since it can be recycled
over and over again without losing any of its chemical or physical properties.

• Energy Efficiency. Copper can improve the efficiency of energy production and distribution systems. Electricity conducted by copper
encounters much less resistance compared with any other commonly used metal. This is the reason why copper is found in wires and
cables, as well as in generators, motors, transformers, and renewable energy production systems. Household electrical appliances,
electronic and telecommunications devices also contain significant quantities of copper.

• Antimicrobial Properties. Due to copper’s antimicrobial properties, numerous applications of copper and copper alloy products are
currently being explored in the healthcare and public sanitation fields to eliminate pathogens, reduce the spread of diseases and
produce clean water.

Cons:

• Water pollution. Water pollution from mine waste rock and tailings may need to be managed after mine closure. In particular, acid mine
drainage is becoming a key issue in some areas. As new mining technologies are able to handle more rock and ore material, more solid
and liquid waste is expected to be disposed of and treated properly.

• Emissions. Atmospheric emissions of sulphur dioxide and heavy metals on fine particles may occur in the smelting and refining
processes. While there have been significant improvements in copper mining, smelting and refining procedures and practices in recent
years, reducing the environmental impacts of copper production remains an important issue for the industry.

18
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 Copper-based products
have a wide variety of
legitimate part of world copper reserves. In the recent decades, an increasing emphasis has been placed life spans from a few
on the sustainability of material uses in which the concept of reuse and recycling of metals plays an years in electronic
devices, to over a 100
important role in the material choice and acceptance of products. If appropriately managed, recycling has years in architectural
the potential to extend the use of resources, and to minimize energy use, some emissions, and waste uses.

disposal. Closing metal loops through increased reuse and recycling enhances the overall resource Assuming an average
life span of 30 years for
productivity and therefore represents one of the key elements of society’s transition towards more most products, copper’s
sustainable production and consumption patterns. It is widely recognized that recycling is not in opposition truer recycling rate
would be 85%.
to primary metal production, but is a necessary and beneficial complement.

In 2005, 34% 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.

19
Copper Recycling Flows

Trade Concen- Blister/ Refined Alloy Alloy Semis

trates/ Anode Copper Ingot Metals Net Trade
Matte

Fabrication
Mining Production
Wire rod Wire rod plant /
Wire mill
SX/EW
Refined Brass Semis Supply
Usage mill
Mine Smelter Refinery

Foundry
New Scrap
Chemicals Low Grade
By-products/ Other Plants Residues
Tailings
slag/ashes

Scrap Scrap for Scrap for Hydromet. Direct Ingot

Recycling Smelting Refining Plant Melt Maker

incl. low grade 987 scrap alloys

refined
20
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 low-grade 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.

21
Global Copper Recyclables Use, 2000-2005
Thousand metric tonnes
Source: ICSG

2000 2001 2002 2003 2004 2005

Americas 1,563 1,352 1,344 1,242 1,313 1,373
Asia 2,867 2,765 2,828 3,154 3,518 3,676
Middle East 143 172 208 215 190 184
Europe 3,189 2,752 2,652 2,452 2,582 2,459
Africa & Oceania 121 101 91 73 70 75
World Total 7,744 6,975 6,921 6,926 7,488 7,591

Total scrap use year-on-year -10% -1% 0% 8% 1%

Secondary refined production 2,090 1,846 1,862 1,759 2,037 2,130
Cu content of Direct Melt 5,654 5,129 5,059 5,167 5,451 5,461
Refined Usage 15,148 14,927 15,192 15,668 16,786 16,664
Total copper usage 20,802 20,056 20,251 20,836 22,237 22,125
Recycling Input Rate (RIR) 37.2% 34.8% 34.2% 33.2% 33.7% 34.3%

Recycling Input Rate by Region 2000 2001 2002 2003 2004 2005
Asia 34.7% 33.0% 31.0% 31.9% 32.9% 33.5%
Europe 48.8% 43.8% 43.9% 40.9% 41.2% 41.4%
North America 29.3% 29.0% 29.8% 28.4% 27.7% 29.5%
Rest of the World 22.1% 18.2% 21.8% 19.6% 21.1% 21.8%
Total World 37.2% 34.8% 34.2% 33.2% 33.7% 34.3%

22
ICSG Copper Flow Model

The ICSG Secretariat developed the Copper Flow Model (CFM) as a key tool for understanding copper flows in a particular country
and determining the efficiency of recycling of copper from end-of-life products. It was first applied for Western Europe and
afterwards for the USA and Brazil. Comparable flow studies were published by other organizations in the context of projects
commissioned by the ICSG and/or other governmental organizations (including China, India and Japan). The CFM aims to calculate
balances at different stages of the copper flow and to cross check these with collected data. For instance, different approaches for
estimating recycling efficiency of a particular product group can be applied and crosschecked. The chart below shows a comparison
of the calculated Recycling Efficiency Rates for the different regions.

70%

60%
Recycling Efficiency Rate

50%

40%

30%

20%

10%

0%
Western Europe USA Japan India Brazil

23
End-of-Life Management of Copper Products

Recycling is dependent on the efficiency of the scrap collection system of products at the end of their service life, technological and
economic factors, product design, societal values, as well as the incentives and barriers introduced by society, including
governments. Today, there are over 140 national and international laws, regulations, directives and guidelines that encourage
responsible end-of-life management of copper-containing products by producers and consumers alike. These regulations provide a
variety of requirements and incentives for products such as appliances, batteries, electronic equipment, telephones and motor
vehicles, among others. In 2004, ICSG conducted a study on end-of-life vehicles that contained the following results:

Flow/Stock European Union Japan USA

Copper stock in cars in use ~3.0 million tonnes ~0.8 million tonnes ~3.0 million tonnes

Copper available for recycling 250,000 tonnes 75,000 tonnes 200,000 tonnes
in one year

Copper collected for domestic 150,000 tonnes 65,000 tonnes 190,000 tonnes
recovery

Copper export in used end-of- 50,000 tonnes 10,000 tonnes n.a.

life cars

24
Copper and Sustainable Development
Copper and copper-based alloys are used in a variety of applications that are necessary for a Copper is distributed in the earth's crust
and oceans in various forms and
reasonable standard of living. Its continued production and use is essential for society's concentrations, which form the overall
development. How society exploits and uses its resources, while ensuring that tomorrow's needs resource-base for copper.

are not compromised, is an important factor in ensuring society's sustainable development. Often, there are references to "world
reserves" of a metal. Reserves indicate
the amount of material that can be
The demand for copper will continue to be met by the discovery of new deposits, technological economically extracted or produced at
improvements, efficient design, and by taking advantage of the renewable nature of copper the time of determination. Improved
extraction techniques and technologies,
through reuse and recycling. As well, competition between materials, and supply and demand new discoveries, depletion and changes
principles, contribute to ensuring that materials are used efficiently and effectively. in economic conditions are some of the
factors that alter reserve levels. For
instance, world copper reserves have
Copper is an important contributor to the national economies of mature, newly developed and jumped from 90 million tonnes in 1950 to
280 and 480 million tonnes in 1970 and
developing countries. Mining, processing, recycling and the transformation of metal into a 2006, respectively.
1

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. This is particularly important for lesser-
developed countries seeking to improve their living standards.

Copper will continue to contribute to society's development well into the future.

1
Source: United States Geological Survey.

25
Chapter 3: World Copper Usage
World Copper Usage, 1900-2006
Thousand metric tonnes
Source: ICSG

18,000
Since 1900, demand
for refined copper
increased from 495
15,000 thousand metric
tonnes to over 17
million metric tonnes
in 2006 as demand
over the period grew
12,000 by an average of 4%
per year.

9,000

6,000

3,000

0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

26
Refined Copper Usage by Region
Thousand metric tonnes
Source: ICSG

8,000 From 1960 until

2006, demand for
copper in Asia
7,000 surged from 455
thousand metric
tonnes to around
8,000 thousand
6,000 metric tonnes.

5,000

4,000

3,000

2,000

1,000

0
1960 1985 2006

Africa Asia Europe Middle East North America Oceania South America

27
Refined Usage per Capita, 1950-20061
Sources: ICSG and U.S. Census Bureau

7,000,000 2.800

6,250,000 2.525
millions people

5,500,000 2.250

kg/person
4,750,000 1.975

4,000,000 1.700

3,250,000 1.425

2,500,000 1.150
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

World Population Refined Copper Usage per Capita

1
Note: 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 domestic
population and does not represent consumption of copper in finished products per person.

28
Intensity of Refined Copper Use1
Sources: ICSG, International Monetary Fund, U.S. Census Bureau
The intensity of
use for a material
12 relates the
Refined Copper Usage per Capita (kg/person)

demand
(consumption) of
that material to
10 Japan economic activity
(gross domestic
EU-27 product, or GDP).

8 More developed
regions of the
United States world benefit from
a well established
North America infrastructure, to
6 which copper is
an important
Russian Fed. contributor.
Oceania
4 As less developed
regions expand
China their
infrastructure,
copper and other
2 Middle East materials form the
Asia
Latin America building blocks
(excluding Mexico) needed to
Africa increase living
0 standards.

0 10,000 20,000 30,000 40,000 50,000

GDP per Capita (2006 US$/person)

1
Note: 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 domestic
population and does not represent consumption of copper in finished products per person.

29
Total Copper Use (Including Direct Melt Scrap), 2000-2005
Thousand metric tonnes
Source: ICSG

25,000

20,000

15,000

10,000

5,000

0
2000 2001 2002 2003 2004 2005
Refined Usage Direct Melt
30
Chapter 4: Copper Products Along the Value Chain
World Copper Production and Consumption, 1960-2006
Thousand metric tonnes
Source: ICSG

18,000 Economic,
technological and
societal factors
influence the
supply and
15,000 demand of
copper. As
society's need for
copper increases,
new mines and
plants are
12,000 introduced and
existing ones
expanded. In
times of market
surplus, existing
9,000 operations can be
scaled back or
closed down,
while planned
expansions can
be delayed or
6,000 canceled.

3,000
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Usage Mine Production Refinery Production

31
Copper Production and Usage by Country, 2006
Thousand metric tonnes
Source: ICSG

Mine Refined Refined Mine Refined Refined Mine Refined Refined

Production Production Usage Production Production Usage Production Production Usage
Argentina 180 16 30 Iran 217 201 130 Poland 497 556 267
Australia 859 429 143 Italy 36 800 Portugal 79 2
Austria 88 33 Japan 0 1,532 1,282 Romania 15 28 28
Belgium 391 301 Kazakhstan 434 428 71 Russian Fed. 675 943 678
Botswana 24 Korea, North 12 15 15 Saudi Arabia 1 185
Brazil 143 220 339 Korea, South 0 575 812 South Africa 90 100 90
Bulgaria 99 66 46 Laos 61 61 Spain 7 256 319
Canada 607 500 301 Malaysia 189 Sweden 87 229 184
Chile 5,361 2,811 111 Mauritania 7 Switzerland 5
China 844 3,047 3,674 Mexico 338 318 302 Taipei, China 639
Colombia 2 10 10 Mongolia 132 3 Thailand 20 261
Congo, Dem Rep 134 Morocco 5 Turkey 46 106 320
Czech Republic 6 Myanmar 20 20 United Arab Emirates 20
Egypt 4 107 Namibia 15 United Kingdom 180
Finland 13 138 83 Netherlands 34 United States 1,220 1,250 2,130
France 540 Norway 40 Uzbekistan 80 115 45
Germany 662 1,398 Oman 25 15 Vietnam 5 75
Greece 88 Pakistan 20 35 Zambia 509 461 27
Hungary 8 Papua New Guinea 194 Zimbabwe 3 7 10
India 29 647 440 Peru 1,049 508 53
Indonesia 816 218 220 Philippines 18 181 50

32
Copper Mine Production, 1900-2006
Thousand metric tonnes (copper content)
Source: ICSG

16,000 World production:

1900: 495 kt
2006: 15,008 kt
14,000
Average annual
growth rate since
1900: 4%
12,000

10,000

8,000

6,000

4,000

2,000

0
1900 1915 1930 1945 1960 1975 1990 2005

33
Copper Mine Production by Region
Thousand metric tonnes
Source: ICSG

Copper Mine
7,000 Production in
South America:
1900: 731 kt
2006: 6,735 kt
6,000
Reason: Chile’s
share of world
copper mine
5,000 production
increased from
14% in 1960 to
36% in 2006,
4,000 producing 5,361
thousand tonnes
last year.
3,000

2,000

1,000

0
1960 1985 2006

Africa Asia Europe Middle East North America Oceania South America

34
Copper Mine Capacity by Region, 2006
Thousand metric tonnes
Source: ICSG

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0
Africa Asia Europe Middle North Oceania South
East America America

Concentrates SX-EW

35
Copper Mine Capacity, 1980 and 2006
Thousand metric tonnes
Source: ICSG

1980 2006
South America,
1,808 Africa, 1,767 Africa, 1,078
South America, Asia, 2,904
Oceania, 448
Asia, 1,228 6,902

Europe, 1,827
North America, Europe, 1,568 Middle East, 272
2,832 Middle East, 5 Oceania, 1,245
North America,
2,732
World Capacity: 9,656 World Capacity: 16,958

36
 Trade Flow of Copper Ores and Concentrates

To Asia

To Europe

37
Leading Exporters and Importers of Copper Ores and Concentrates, 2006
Thousand metric tonnes copper content
Source: ICSG

Importers
Exporters

Portugal 80 Others
160
Brazil, 107 Philippines 99

United States 108 Canada 104

Brazil 161 Others 242
Mongolia 130
Japan 1,327
Argentina 202 Finland 163
Chile 2,172
Canada 230 Spain 281

Germany 345
Indonesia 434
Korean Rep. 437
China 1,084
Australia 490 Peru 536 India 478

World Total: 5,188 World Total: 5,230

38
Top 20 Copper Mines by Capacity, 2006
Thousand metric tonnes
Source: ICSG
Rank M ine Nam e Capacity Country O w ner(s)
In 2006, Chile
1 Escondida 1,311 Chile BHP Billiton, Rio Tinto, Japan Escondida contained 5 of the
top 10 and 8 of
2 Codelco Norte 957 Chile Codelco
the top 20 copper
mines by capacity
3 G rasberg 750 Indonesia P.T. Freeport Indonesia, Rio Tinto
in the world.
4 Collahuasi 450 Chile Anglo Am erican, Xstrata plc, Mitsui, Nippon

5 Morenci 430 United States Freeport McMoran Copper & G old, Sum itom o

6 Taim yr Peninsula 430 Russian Federation Norilsk Nickel

7 El Teniente 418 Chile Codelco

8 Antam ina 400 Peru BHP Billiton, Teck, Xstrata plc, Mitsubishi

9 Los Pelam bres 335 Chile Antofagasta Holdings, Nippon Mining,

Mitsubishi Materials
10 Batu Hijau 300 Indonesia P.T. Pukuafu Indah, Newm ont, Sum itom o
Corp., Sum itom o Metall Mining
11 Bingham Canyon 280 United States Kennecott

12 O lym pic Dam 255 Australia BHP Billiton

13 Andina 236 Chile Codelco

14 Zhezkazgan Com plex 230 Kazakhstan Kazakhm ys

15 Los Bronces 226 Chile Anglo Am erican

16 Rudna 220 Poland KG HM Polska Miedz S.A.

17 El Abra 219 Chile Codelco, Freeport McMoran Copper & G old

18 Mount Isa 212 Australia Xstrata plc

19 Toquepala 210 Peru Southern Copper Corp.

20 Cananea 210 Mexico G rupo Mexico

39
Copper Smelter Production1
Thousand metric tonnes
Sources: ICSG and U.S. Geological Survey

15,000 Smelting is the

pyrometallurgical
process used to
produce copper
12,500 metal. Recently,
the trend to
recover copper
directly from ores
10,000 through leaching
processes has
been on the
increase.
7,500
Primary smelters
use mine
concentrates as
5,000 their main source
of feed (although
some use copper
scrap as well).
2,500
Secondary copper
smelters use
copper scrap
0 (mainly low grade)
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 as their feed.

Primary Feed Secondary Feed

1
Prior to 1975, secondary smelter production in included in primary production figures.

40
Copper Smelter Production by Region
Thousand metric tonnes
Source: ICSG

6,000

5,000

4,000

3,000

2,000

1,000

0
1990 2006
Africa Asia Europe Middle East North America Oceania South America

41
Trends in Copper Smelting Capacity, 1980-2006
Thousand metric tonnes
Source: ICSG

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

Electric Flash Continuous Modified Reverb/Convert

Reverb/Blast/Rotary Electrowinning 1/ Total Smelters

1/ Low grade copper to be re-refined.

42
Copper Smelter Capacity, 2006
Thousand metric tonnes
Source: ICSG

China accounted for

8,000 16%, or 2.7 million
metric tonnes, of the
world’s total smelter
7,000 capacity of 16.5
million metric tonnes
in 2006.

6,000

5,000

4,000

3,000

2,000

1,000

0
Africa Asia Europe Middle North Oceania South
East America America
43
Trade Flow of Copper Blister and Anodes

TO NORTH
AMERICA

TO ASIA

44
 Leading Exporters and Importers of Copper Blister and Anodes, 2006
Thousand metric tonnes
Source: ICSG

Exporters Importers
South Africa, 12

United States, 19 Japan, 9 Others, 74

Poland, 32
Mexico, 20
Thailand, 34 Others, 73
Peru, 20
Sweden, 36 Belgium, 268
Finland, 35
Germany, 42
Spain, 46 Chile, 457

Mexico, 78
Canada, 88
Korean Rep., 87
United States, 172
Bulgaria, 168 China, 89
Canada, 93

World Total: 1,010

World Total: 948

45
Top 20 Smelters by Capacity, 2006
Thousand metric tonnes
Source: ICSG
Rank Smelter Name Capacity Process Country Owner(s)
1 Birla Copper (Dahej) 500 Outokumpu Flash, Ausmelt, India Birla Group
Mitsubishi Continuous
2 Norddeutsche Affinerie 450 Outokumpu, Contimelt, Germany Norddeutsche Affinerie AG
Electric
2 Saganoseki/ Ooita 450 Outokumpu Flash Japan Pan Pacific Copper Co. Ltd

4 Codelco Norte 400 Outokumpu/Teniente Chile Codelco

Converter
4 Guixi 400 Outokumpu Flash China Jiangxi Copper Corp.

4 Norilsk (Nikelevy, Medny) 400 Reverb, Electric, Vanyukov Russia Norilsk G-M

7 El Teniente (Caletones) 391 Reverberatory/ Teniente Chile Codelco Chile

Conv.
8 Besshi/ Ehime (Toyo) 365 Outokumpu Flash Japan Sumitomo Metal Mining Co. Ltd.

9 Jinchuan 350 Reverberatory/ Kaldo Conv. China Jinchuan Non- Ferrous Metal Co.

9 Yunnan 350 Isasmelt Process China Yunnan Copper Industry Group (Local Government)

11 Onahama/ Fukushima 324 Reverberatory Japan Mitsubishi Materials Corp., Dowa Metals & Mining Co.
Ltd., Furukawa Metals & Resources Co. Ltd.
12 Huelva 320 Outokumpu Flash Spain Atlantic Copper S.A. (Freeport McMoran)

12 Garfield 320 Kennecott/ Outokumpu United Kennecott (Rio Tinto)

States
14 Ilo Smelter 315 Isasmelt Process Peru Southern Copper Corp. (Grupo Mexico)

15 Naoshima/ Kagawa 312 Mitsubishi Continuous Japan Mitsubishi Materials Corp.

16 Sterlite Smelter (Tuticorin) 300 Isasmelt Process India Vedanta

17 Onsan II 300 Mitsubishi Continuous Korea LS-Nikko Co. (LS, Nippon Mining)
Republic
17 La Caridad 300 Outokumpu/ Teniente Mexico Mexicana de Cobre S. A. (Grupo Mexico)
Converter
19 Altonorte (La Negra) 290 Noranda Continuous Chile Xstrata plc

20 Gresik 260 Mitsubishi Flash Indonesia Mitsubishi, Freeport McMoran

46
Refined Copper Production, 1960-2006
Thousand metric tonnes
Source: ICSG

18,000
With the gradual
emergence of
solvent extraction-
electrowinning (SX-
15,000 EW) technology,
refined copper
produced from
leaching ores now
12,000 accounts for 16% of
production.

Recognizing the
economic and
9,000 environmental
importance of
recycling, part of
refined production is
6,000 sourced from scrap.

3,000

0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Refinery Primary Refinery Secondary Refinery SX-EW

47
Refined Copper Production by Region
Thousand metric tonnes
Source: ICSG

7,000 Asian share of world

refined copper
production:

1960: 8%
6,000
1985: 18%
2006: 36%.

5,000

4,000

3,000

2,000

1,000

0
1960 1985 2006

Africa Asia Europe Middle East North America Oceania South America

48
Trends in Refining Capacity, 1980-2006
Thousand metric tonnes
Source: ICSG

21,000

18,000

15,000

12,000

9,000

6,000

3,000

0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

Electrolytic Electrowinning Fire Refining Total

49
 Refined Copper Capacity
Thousand metric tonnes
Source: ICSG

1980 2006
South America,
1,139 South America,
Africa, 1,120 Africa, 977
3,734
Oceania, 150

Asia, 2,487 Oceania, 686

Asia, 7,692

North America,
2,879 North America,
3,229
Middle East, 0 Middle East, 247
Europe, 3,180 Europe, 4,076

World Total: 10,954 World Total: 20,641

50
Trade Flow of Refined Copper

To Asia

51
 Leading Exporters and Importers of Refined Copper, 2006
Thousand metric tonnes
Source: ICSG

Exporters Importers

Others, 1,938 Brazil, 175 Others, 1,071 United States, 1,073

Chile, 2,606
Turkey, 178
Thailand, 267 Germany, 881

China, 243

Russian Fed., 268 Korean Rep., 380

Canada, 280 France, 509
Zambia, 476 China, 827
Australia, 287 Japan, 320 Kazakhstan, 357 Peru, 443
Taiwan, 646 Italy, 774
Poland, 288
World Total: 7,518
World Total: 6,836

52
Top 20 Copper Refineries by Capacity, 2006
Thousand metric tonnes
Source: ICSG
Rank Refinery Name Capacity Process Country Owner(s)
1 Birla 500 Electrolytic India Birla Group

2 Codelco Norte 457 Electrowinning Chile Codelco

3 Amarillo 450 Electrolytic United States Grupo Mexico

4 Chuquicamata Refinery 443 Electrolytic Chile Codelco

5 Morenci 420 Electrowinning United States Freeport-McMoRan Copper & Gold Inc., Sumitomo

6 El Paso 415 Electrolytic United States Freeport-McMoRan Copper & Gold Inc.

7 Guixi 400 Electrolytic China Jiangxi Copper Corporation

8 Norddeutsche Affinerie 385 Electrolytic Germany Norddeutsche Affinerie AG

9 CCR Refinery (Montreal) 380 Electrolytic Canada Xstrata plc

9 Pyshma Refinery 380 Electrolytic Russia Uralelectromed (Urals Mining & Metallurgical Co.)

11 Las Ventanas 376 Electrolytic Chile Codelco

12 Toyo/Niihama (Besshi) 365 Electrolytic Japan Sumitomo Metal Mining Co. Ltd.

13 Ilo Copper Refinery 350 Electrolytic Peru Southern Copper Corp. (Grupo Mexico)

13 Jinchuan 350 Electrolytic China Jinchuan Non Ferrous Co.

13 Yunnan 350 Electrolytic China Yunnan Copper Industry Group

16 Olen 345 Electrolytic Belgium Cumerio

17 Norilsk Refinery 330 Electrolytic Russia Norilsk Copper

18 Huelva 320 Electrolytic Spain Atlantic Copper S.A. (Freeport McMoran)

19 Garfield 300 Electrolytic United States Kennecott (Rio Tinto)

20 La Caridad 300 Electrolytic Mexico Mexicana de Cobre S. A. (Grupo Mexico)

53
Copper Semis and Casting Production, 1980-2005
Thousand metric tonnes
Source: ICSG

24,000
Semis fabricators
process refinery
shapes such as
21,000 cathodes, wire bar,
ingot, billet slab and
cake into semi-
finished copper and
18,000 copper alloy products
using both unwrought
copper materials and
direct melt scrap as
15,000 raw material feed.
Semis fabricators are
considered to be the
“first users” of refined
12,000 copper and include
ingot makers, master
alloy plants, wire rod
plants, brass mills,
9,000 alloy wire mills,
foundries and foil
mills.

6,000

3,000

0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

Copper Semis Copper Alloy Semis Other Semis Foundry Castings

54
Copper Semis and Casting Production by Region
Thousand metric tonnes
Source: ICSG

Asian countries
10,000 accounted for 45% of
semis production in
9,000 2005, or nearly 9.8
million metric tonnes,
up from 22% in 1980.
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
1980 2005
Africa Asia Europe North America Oceania South America

55
Trends in First Use Capacity
Thousand metric tonnes
Source: ICSG

40,000 Wire rod, brass and

wire mills are
estimated to have
accounted for 96% of
35,000 first use capacity in
2006.

30,000

25,000

20,000

15,000

10,000

5,000

0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Wire Rod Brass & Wire Mill Ingot & Master Alloy Foil Mill
56
First Use Capacity by Region
Thousand metric tonnes
Source: ICSG

1995 2006
North America,
North America, Africa, 284 5,864
4,701 Africa, 566
Oceania, 345 Oceania, 241
Middle East, 679
Middle East, 466 Latin America,
Asia, 10,038
Latin America, 1,070
919

Asia, 19,643
Europe, 10,252
Europe, 8,447

World Total: 25,200 World Total: 38,317

57
Leadings Exporters and Importers of Semi-Fabricated Copper Products, 2006
Thousand metric tonnes
Source: ICSG

Exporters Importers

Germany, 1,064
Others, 1,757
China, 1,086
France, 461 United States, 677 Other, 1,761

Belgium, 203

China, 447
Canada, 220
Russian Fed., 407 Austria, 114
Italy, 311 Hong Kong, 365
Hong Kong, 346 Switzerland, 118
Korean Rep., 317 Japan, 302 Taiwan, 300 Germany, 361
United States, 344 Italy, 377 France, 300 Canada, 125

Spain, 214 United Kingdom, 195

Mexico, 207
World Total: 6,479 World Total: 5,900

58
Top 20 Copper Fabricating Plants by Capacity, 2006
Thousand metric tonnes
Source: ICSG

Rank Owner(s) Plant Capacity Country Plant type

1 Wieland Werke (Wieland Metals) Voehringen 360 Germany Brass mill
2 Freeport McMoRan Copper & Gold Inc. El Paso, TX 355 USA Wire rod plant
3 Freeport McMoRan Copper & Gold Inc. Norwich, CT 355 USA Wire rod plant
4 Southwire Carollton, GA 320 USA Wire rod plant
5 Conticon (Grupo Condumex - Grupo Carso) Celaya 318 Mexico Wire rod plant
6 SCCC - Societe de Coulee Continue de Cuivre (Nexans) Chauny 300 France Wire rod plant
7 Trafilierie Carlo Gnutti Chiari 300 Italy Brass mill
8 Umicore - Cumerio Olen (Plant 1) 280 Belgium Wire rod plant
9 Hitachi Wire Rod (Hitachi Cable) Ibaraki-Ken 280 Japan Wire rod plant
10 Norddeutsche Affinerie Hamburg (Plant 1) 275 Germany Wire rod plant
11 LS Cable Gumi 270 Korea Wire rod plant
12 Asarco (Grupo Mexico) Amarillo, TX 270 USA Wire rod plant
13 Katur-Invest (Uralelektromed) Verkhnaya Pyshma (Plant 1) 265 Russia Wire rod plant
14 Nexans Canada Inc. (Nexans) Montreal-East 260 Canada Wire rod plant
15 Deutsche Giessdraht (Norddeutsche Affinerie, Codelco) Emmerich 250 Germany Wire rod plant
16 MKM Mansfelder Kupfer & Messing (Kazakhmys) Hettstedt 250 Germany Brass mill
17 Taihan Electric Anyang 250 Korea Wire rod plant
18 Huta Miedzi Cedynia (KGHM Polska Miedz) Orsk, Rudna (Plant 1) 240 Poland Wire rod plant
19 Poongsan Onsan, Ulsan 235 Korea Brass mill
20 Caraiba Metais (Paranapanema) Camacari, Salvador (Plant 1) 230 Brazil Wire rod plant

59
Chapter 5: The Commodity “Copper” in the Global Economy
Exchanges
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 end-use 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.

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.

60
Copper Prices (LME, Grade A, Cash)
US$ per tonne
Source: ICSG

$8,000 The average annual

current (not adjusted
for inflation) cash
price of copper at the
$7,000 London Metal
Exchange surged by
over 330% between
2002 and 2006.
$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Current Dollars Constant 2000 $

61
Copper Stocks by Sector
Thousand metric tonnes
Source: ICSG

2,250

2,000

1,750

1,500

1,250

1,000

750

500

250

0
70

72

74

76

78

80

82

84

86

88

90

92

94

96

98

00

02

04

06
19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

20

20

20

20
Producers Consumers Merchants Government Exchanges
62
Copper Stocks vs Price
Thousand metric tonnes and US$ per tonne
Source: ICSG

2,500 $7,500

2,000 $6,000
thousand metric tons

1,500 $4,500

$ per ton
1,000 $3,000

500 $1,500

0 $0
1970 1975 1980 1985 1990 1995 2000 2005

End of Year Copper Stocks Average Copper Price

63
ANNEX
World Copper Production and Usage, 1960-2006
Thousand Metric Tonnes
Source: ICSG

Mine Refined Refined Mine Refined Refined Mine Refined Refined

Production Production Usage Production Production Usage Production Production Usage
1960 3,924 4,475 4,738 1976 7,097 8,211 8,539 1992 9,497 11,045 10,761
1961 4,081 4,567 5,050 1977 7,444 8,500 9,057 1993 9,549 11,124 10,981
1962 4,216 4,689 5,048 1978 7,306 8,632 9,527 1994 9,553 11,239 11,420
1963 4,286 4,978 5,500 1979 7,371 8,834 9,848 1995 10,084 11,832 12,059
1964 4,443 5,210 5,995 1980 7,230 8,869 9,396 1996 11,097 12,677 12,636
1965 4,647 5,636 6,193 1981 7,745 8,970 9,522 1997 11,537 13,478 13,098
1966 4,626 5,778 6,445 1982 7,721 9,246 9,090 1998 12,248 14,075 13,511
1967 4,872 6,006 6,195 1983 7,843 9,260 9,510 1999 12,776 14,578 14,293
1968 5,010 6,360 6,523 1984 8,138 9,313 9,930 2000 13,209 14,796 15,138
1969 5,941 6,849 7,137 1985 8,288 9,455 9,798 2001 13,763 15,256 14,946
1970 5,562 6,871 7,291 1986 8,266 9,920 10,112 2002 13,576 15,334 15,231
1971 5,900 7,050 7,296 1987 8,592 10,148 10,293 2003 13,634 15,638 15,716
1972 6,541 7,548 7,942 1988 8,775 10,512 10,668 2004 14,601 15,915 16,846
1973 6,735 7,647 8,740 1989 9,372 10,687 11,081 2005 14,921 16,591 16,731
1974 6,915 7,858 8,310 1990 9,226 10,804 10,886 2006 15,008 17,331 17,042
1975 7,289 8,175 7,445 1991 9,084 10,908 10,565

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International Copper Study Group
Rua Almirante Barroso 38 – 6th
1000-013 Lisbon, Portugal
Tel: +351-21-351-3870 Fax: +351-21-352-4035
e-mail: [email protected]
Web site: www.icsg.org