Knowledge Nugget | The story of Copper: what is this metal and why it reflects global economic health

In this context, it becomes important to not only know why copper is seen as a barometer of the economic health of a country but also understand its properties, uses and distribution. 

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Key Takeaways:

1. Copper is a soft, malleable and ductile metal with very high thermal and electrical conductivity. It is one of the few metals that occur in nature in directly usable metallic form (native metals).

2. It is an important non-ferrous base metal with wide industrial applications. Copper is essential to the modern economy, with uses ranging from housing and manufacturing to power grids, clean energy, artificial intelligence and defence. Thus, it is often seen as a barometer of economic health.

3. A rise in copper prices is considered a signal of robust economic growth, while falling prices tend to raise concerns about an economic slowdown.

4. According to industry sources and experts, the recent sharp fall in prices of the red-metal reflects weakening demand prospects amid concerns that higher energy costs from the West Asia conflict could dampen economic growth.

5. According to the Indian Minerals Yearbook 2022, India is not self-sufficient in the production of copper ore. In addition to domestic production of ore and concentrates, India imports copper concentrates for its smelters.

6. The domestic demand for copper and its alloys is met through domestic production, recycling of scrap and by imports. Hindustan Copper Limited (HCL), a Public Sector Undertaking, is the only integrated Company in the country that is involved in mining and beneficiation of ore and is engaged in smelting, refining and casting of refined copper.

7. Copper is one of the most recycled metals of all the metals. The recycling of copper scrap is gaining importance worldwide simply because of the fact that recovery of copper metal from scrap requires much less energy than  its recovery made from primary source. It also enables conservation of natural resources.

Distribution of Copper

1. According to the Indian Minerals Yearbook 2022, largest reserves/resources of copper ore (52.25%) are in the State of Rajasthan followed by Madhya Pradesh (23.28%) and Jharkhand (15.14%).

2. Copper reserves/resources in Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Meghalaya, Nagaland,  Odisha, Sikkim, Tamil Nadu, Telangana, Uttarakhand and  West Bengal accounted for the remaining 9.33% of the total  All India resources.

3. As per the Indian Minerals Yearbook 2022, the world reserves of copper metal are assessed at 890 million tonnes of copper content. Chile has the largest share, accounting for about 21% of world reserves, followed by Australia (11%), Peru (9%), Russia (7%), Mexico (6%), USA (5%), Congo (Kinshasa), Poland, China & Indonesia (3% each), Kazakhstan & Zambia (2% each) and Canada (1%). The remaining 24% was contributed by other countries.

Uses of Copper

1. According to the Indian Minerals Yearbook 2022, the electronic industry is by far the largest consumer of copper, where it is used in the form of cables and winding wires, as it is the best non-precious metal conductor of electricity, encountering much less resistance and being safe for electrical distribution systems from high-voltage transmission cables to microcircuits. Notably, Copper also has relatively high creep strength as compared to other commonly used materials.

In India, copper is classified as a critical mineral given limited domestic production and high demand in conventional and emerging technologies. (File Photo)

2. Copper is used in the construction industry as plumbing, taps, valves and fittings components. In the transportation industry, copper is used in various components.

3. Copper is extensively used in industrial machinery and equipment. It is used in a number of consumer products, such as coinage, utensils, fixtures, etc. Large quantities of copper are consumed in making copper-based alloys, such as brass and bronze.

BEYOND THE NUGGET: Substitutes of Copper

1. Copper is vulnerable for substitution on grounds of technical superiority,  price, or weight. Aluminium is used as a substitute for copper in various products, such as electrical power cables, electrical equipment, automobile radiators and cooling/refrigeration tubing. 

2. Optical fibre has substituted copper in some telecommunication applications, and plastics are used as a substitute for copper in water pipes, plumbing, fixtures and many structural applications.

Post Read Question

With reference to copper, consider the following statements:

1. Copper is a non-ferrous metal with high electrical conductivity.

2. It occurs in nature in directly usable metallic form.

3. It is widely used in power grids and microcircuits.

Which of the statements given above is/are correct?

(a) 2 and 3 only

(b) 1 and 3 only

(c) 3 only

(d) 1, 2 and 3

(Sources: Behind copper’s latest fall: West Asian conflict weighs on the metal’s demand outlook, ibm.gov.in, Indian Minerals Yearbook 2022 (Part- II : Metals & Alloys)

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