Last month, mining prospector start-up KoBold Metals heralded a new era for the industry, announcing that its revolutionary AI-powered technology had recently discovered what is likely to be the largest copper discovery in over a decade. The Silicon Valley innovator—backed by heavyweight investors including Bill Gates and Jeff Bezos—estimates that this Zambian mine will produce at least 300,000 tons of copper annually, representing billions in value every year over the coming decades.
KoBold's breakthrough finding is a crucial first step on its journey to transforming the extraction process for one of the most vital minerals for the green transition. Ramping up copper mining through sustainable innovation will be essential in the fight against climate change—a mission that large mining companies have already started progressing to help meet soaring global demand.
Economic Transitions Widening Copper's Supply-Demand Gap
From renewable energy and electric vehicles (EVs) and even AI, copper is a fundamental input for the building blocks of the green, digitally innovative economy of the future. In recent years, the skyrocketing demand for these technologies has created a widening "disconnect" between the digital-green economic transitions' hunger for copper and the industry's ability to provide sufficient supplies, according to Dr. Lawrence Cathles, a Cornell University earth sciences professor and co-author of a recent International Energy Forum (IEF) study on the subject.
As Cathles and his fellow co-author Dr. Adam Simon found, 115% more copper must be mined between now and 2050 than has been produced in the entirety of pre-2018 human history just "to meet business-as-usual trends." Meanwhile, the IEF study concludes that electrifying global road transport would require 55% more new copper mines than this baseline scenario.
Although these results paint a daunting picture, the silver lining is that global copper resources remain abundant, with the real question remaining whether miners will be able to extract them rapidly and sustainably enough to achieve Net Zero by mid-century while avoiding broader environmental impacts.
AI Innovators' Sustainable Mining Solutions
That's where innovators like KoBold come in. The company's AI-driven prospecting technologies optimise copper exploration, avoiding unnecessary and wasteful environmental disruption. Conundrum, an AI software provider for the mining industry, has emerged as another key player in this space. According to Conundrum, "adopting AI and machine learning solutions" will help drive "a substantial downturn in mining's energy and environmental toll," positioning the mining industry to "not only meet regulatory and social expectations" but also become "a leader of Industry 4.0."
If KoBold is driving forward innovation in exploration, Conundrum represents the other end of the spectrum, providing mining companies with automated machine learning models integrated directly into operational processes, creating a range of sustainability benefits, from optimising energy, water usage, and material flows to boosting yield quality and quantity while slashing carbon emissions.
Moving forward, incorporating AI-driven solutions from exploration to extraction will be essential in accelerating the mining industry's transformation into a positive contributor to sustainability without undermining output. Equipped with next-generation digital technologies, mining giants will be positioned to boost copper production dramatically while maintaining high environmental standards.
Industry's Heavy Hitters Rising to Occasion
In the DRC, the world's third-largest copper producer, Chinese miner CMOC is at the forefront of the country's recent surge in production. In the first half of 2024, CMOC posted a 101% year-on-year rise in copper output, representing 75% of its total production in 2023. Over the next four years, the company plans to double production from its DRC copper mines, including its Tenke Fungurume Mine (TFM)—the fifth-largest copper mine in the world—while ramping up operations at its recently launched Kisanfu mine to help meet the substantial increase in global copper demand.
Guided by its Carbon Neutral Roadmap and Action Plan, CMOC's strong commitment to sustainability across its operations, spanning energy efficiency, electrification, renewable energy, and the exploration of carbon capture and storage technologies, will ensure this long-term jump in copper output does not undermine its contribution to climate action. TFM's achievement of Copper Mark Certification in June—the first African mine to receive this responsible ESG mining distinction—proves that CMOC is already on the right track.
CMOC's recent efforts are being complemented in the world's leading copper-producing country, Chile, where Australian powerhouse BHP is picking up the slack from the country's beleaguered state copper giant Codelco, whose production dropped earlier this year. BHP's copper production has risen by 34.1% relative to last year, contributing significantly to the nearly 10% rise in Chile's annual copper output despite Codelco's recent headwinds.
At its Escondida copper mine, the world's largest, BHP is investing $250 million in an electric trolley system to propel its diesel extraction trucks, enabling them to cut fuel consumption and carbon emissions. This latest sustainable innovation notably builds on BHP's gradual adoption of autonomous mining technologies, with the company already using six autonomous trucks and aiming for the largest fleet in South America by 2025 in order to lead on safe, sustainable, and efficient copper mining.
Race Against the Clock
Moving forward, accelerating the deployment of technological innovation in copper mining will be critical to boosting capacity in a sustainable manner and meeting the rising demand for the green transition. Given the extended timescale from exploration to launching an operational mine, swift action is needed to bridge the gap between current capabilities and future requirements. Implementing advanced technologies can streamline operations, reduce environmental impact, and enhance overall efficiency, ensuring that copper production keeps pace with escalating global demand.
A close partnership between innovative mining technology providers, such as KoBold Metals, and the world's largest copper miners will, therefore, be essential in addressing the supply-demand "disconnect" recently highlighted by the International Energy Forum. By integrating cutting-edge solutions, such collaborations can optimise resource management, enhance sustainability, and even increase productivity, not only helping to close the existing gap but also laying a stable, long-term foundation for the clean and resilient economy of the future.
