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1) Rio Tinto has completed the construction of a 5-megawatt solar power plant at its Kennecott copper operation in Utah. This solar plant, consisting of 12,800 panels, will help reduce Kennecott's operational emissions by 3,000 tons of carbon dioxide equivalently annually. It serves as a pilot project with plans to expand Kennecott's solar energy supply in the future. Kennecott has been prioritizing sustainable energy solutions, such as transitioning from a coal-fired power plant to electricity paired with renewable energy certificates, resulting in a 65% reduction in its carbon footprint. Rio Tinto aims to reduce its global Scope 1 and 2 emissions by 50% by 2030 and achieve net zero emissions by 2050.
2) The US is intensifying efforts to strengthen ties with African nations rich in critical minerals to secure their own supply. Workshops held in Zambia and the Democratic Republic of Congo were aimed to establish local battery manufacturing operations, as critical minerals are the main and key element in clean energy technologies. The US government recently approved $150 million in funding for a graphite mining project in Mozambique, with the goal of boosting graphite production for electric vehicle batteries. This initiative falls under the Minerals Security Partnership, which encourages foreign investment and cooperation in mining industries to ensure a stable supply of key raw materials like lithium, manganese, and cobalt. The partnership also emphasizes collaborating with companies that uphold high ESG standards and labor rights. Additionally, the US has signed agreements with Congo and Zambia to support their development of an electric vehicle value chain due to their significant copper and cobalt production, essential for electric vehicles and their batteries.
3) Copper inventories on the London Metal Exchange (LME) have reached their highest level in almost 2 years, providing relief to buyers who have faced chronic supply shortages for years. Stockpiles have increased sex days in a row, reaching 181,150 tons, which is a three-fold increase since July. This increase in supply is occurring as traditional sectors like construction see weakening demand and a significant rise in copper production is expected to create a surplus in the market next year. The copper market's shift towards surplus is impacting market sentiment at LME Week in London, the metals industry's major annual event. While there are expectations of a future copper supply crunch due to increased usage in renewables and electric vehicles, the current focus is on how substantial next year's surplus will be. Copper prices on the LME have fallen 0.5% while other metals have shown mixed performance with nickel rising by 1.4% and aluminum falling by 0.6%.