Anuário Brasileiro do Cobre Brazilian Copper Yearbook 2023 11 The importance of copper in the transition to cleaner energy sources is well-established. Energy efficiency is the watchword. Copper, with its unique properties and versatility, is a central pillar. Industry and government are key players, and there is room for them to play an active role in this new era. It is up to our generation to make the fascinating journey of bringing about the changes needed to mitigate carbon emissions and provide new foundations for ensuring the health of the planet. Limited investments in technology and innovation put us one step behind the most developed countries, but we have our strengths: we are creative, we have a rich biodiversity, abundant water, an energy matrix, and a favorable climate for renewable energy sources. There are opportunities and the agenda is broad, from topics that should be part of our internal actions to mitigate the emissions resulting from our operations to our role as enablers of the use and recycling of copper. Preparing for the demands ahead is a commitment to sustainability and the well-being of the population. It ensures the competitiveness and attractiveness of companies and the country. Prosperity is built by collaboration between people who well-trained and public policies with an eye on the country’s development in the present and the future. So, good strategy and talented people are essential to business. However, we have learned from Peter Drucker that “culture eats strategy for breakfast,” so discussing what drives us can lead to places perhaps less examined. Organizational culture can be defined as the way we do things. It explains the connection between people, businesses, and customers. Purpose is what drives us and motivates us to wake up in the morning. Culture and purpose attract, retain, and repel talent. Young people are more interested in the alignment of purpose and values in their choices than previous generations. So, it seems logical that if we want to move forward, we need to table the issue with our teams. Questions such as What is our company’s culture? How aligned are people with it? What is your purpose and that of your company? should be on executives’ agendas as a basis for ensuring the proper implementation and execution of the strategy. Copper is essential in the vast array of decarbonization technologies. Electric vehicles use more than twice as much copper as combustion vehicles, not counting the infrastructure they require. The trend toward miniaturization – the design of smaller, more efficient, and feature-rich products – is also expected to drive copper consumption. Although it demands less copper per unit, the unimaginable expansion of the use of technology in our lives and the limitation of substitution by other less efficient metals make the balance positive for copper. Self-driving vehicles that require multiple copper-using technologies, such as sensors, cameras, and high-performance computers, are not a distant dream. They are expected to be common by the end of the decade. The forecast for an increase in copper consumption in the coming years, driven by the transition to a low-carbon economy, is for double current demand by 2050. The global commitment under the Paris Agreement, the changing consciousness of society, and technological developments open up a range of opportunities. Change takes us to better places, and Darwin taught us that it is not the strongest, nor the most intelligent that survive, but the ones that best adapt to change. So, strong political commitment and collaboration among all the stakeholders in the copper value chain are necessary to make our country and companies able to compete in this new era. Topics such as circular economy and recycling are promising. They reduce environmental impacts and are strategic for countries. Copper mining faces challenges as production costs grow with reduced quality of ore. In Chile, ore quality has fallen by 30 percent in the last 15 years, and copper content is now around 0.64 percent, according to an article by Ernst & Young. It means that more energy and water are consumed, and more carbon emissions and socio-environmental stresses are generated. Geopolitical pressures with constant discussions about raising mining taxes and nationalization raise risks and may reduce investments in the sector. Recycling techniques, such as for batteries, are needed. Global demand for lithium battery storage is expected to grow from the current 700 to 4,700 gigawatt-hours by 2030, according to a study by consulting firm, McKinsey. In Brazil, one of the most advanced studies is being conducted at the Center for Advanced and Sustainable Technologies (CAST) at the Sao Paulo State University (UNESP) School of Engineering, in Sao Joao da Boa Vista (Sao Paulo state), which has invested in the development of the hydrometallurgy process. The use of recycled copper in Brazil’s industry also has room to advance and generate opportunities and employment. Public policies are essential for this. Tax evasion slows down our development. The theft of copper cables is only the most visible, tiny tip of the whole. Unfair competition harms companies that act ethically, reduces public revenues, and limits their ability to invest in modern and sustainable technologies. Failure to address this issue gradually reduces our competitiveness, undermines job creation, and economic growth, and increases dependence on imports. And we know that capitalism is ruthless on this. Bringing together companies, the government, and research institutions is also a force that can be further explored. It generates mutual benefits: it accelerates innovation, encourages research, and drives development in the country. There are many success stories about this collaboration, but companies in Brazil, on average, are still far from research centers and universities. Companies in developed countries and China do this best and reap the rewards. Brazilian entrepreneurs can take the first step, and institutions need to be prepared, welcome them, and add value through knowledge. Collaboration among people and integration among business, government, and universities is essential for the application of strategies to advance society. Creating an environment of mutual support, which favors the exchange of experiences and the discussion of divergent points of view, is a challenge that requires maturity and continuous effort from leaders. The pursuit and generation of knowledge, with enough humility to be open to the new, brings competitive advantages. As Isaac Newton noted in a letter in 1676, “If I have seen farther, it is by standing on the shoulders of giants.” Copper supply chain challenges in the green economy By Fabio Rocha Passerini
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