FP/wire say Hudbay CFO warns of metal supply deficit
FP/wire say Hudbay CFO warns of metal supply deficit
2021-10-01 09:34 ET - In the News
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The Financial Post reports in its Friday edition that the world needs more mines to meet demand for copper and other battery metals required to shift to less polluting energy sources -- even if such moves are seen as environmentally unappealing, according to Hudbay Minerals chief financial officer Steve Douglas. A Bloomberg dispatch to the Post reports that Mr. Douglas says copper faces a structural deficit of five to seven million tons starting in the next three or four years. He says an energy transition cannot happen without copper. He says: "The table is being set at least for those metals that will contribute to the decarbonization of the world. You're going to have to either stimulate or allow to be built an awful lot of the extractive-type industries that would get the scarlet letter in the environmental side -- you're not going to decarbonize the world without it." The ability to build mines has become more challenging as investors put greater weight on the environmental credentials of metals producers, while social issues including dealing with local communities have also been under the spotlight. That adds to industry challenges that include supply disruptions and rising costs of raw materials.