Nyrstar has released a report outlining the significant effects of the rise in renewable energy on the global metals market and the opportunity it presents Australia to become a global leader in critical minerals by stepping up its processing of strategic and critical metals.
The report reveals that according to Trafigura Research and industry forecasts, by 2030, yearly demand for zinc will climb by 20% from where it is today.
According to Trafigura Research, based on current estimates, some enhanced supply might satisfy nearly half of the increased demand, but there would still be a more than 10% gap in 2030. A 10% shortage equates to 150% of Australia’s total mined zinc supply or five to six additional “mega mines.”
Nyrstar said global supply predictions in the research also suggest that there is a significant danger despite growing demand for zinc and other metals. The company explained that the risk is caused by today’s rapid drawdown of current stockpiles, the lack of development of new mining and refining projects and an increased concentration of processing in just a few nations.
According to the white paper, Australia can take advantage of the secular shift in the metals markets by acting quickly to put policy foundations in place, such as adding zinc and other industrial metals to a critical minerals list, as has already been done in the US, Canada, and Korea, and by supporting an increase in the expansion of existing domestic processing facilities of critical and strategic metals.
Nyrstar Co-CEO Dale Webb said metal markets are now susceptible to unpredictability, shock, and geopolitical risk, despite metals being essential to the energy revolution. Webb noted that Australia has a once-in-a-generation chance to adapt to the shift in commodity demand and, in doing so, improve its position in supplying South East Asia and the United States with energy and supply security.
“Now is the time to leverage Australia’s rich endowment of resources and world-class metals, smelting and refining industry and set a new direction in our critical minerals future, by putting in place the right policy signals to expand and evolve our processing capability,” Webb stated.
“Australia can become a significant player in the production of critical minerals and metals in the region, becoming known as a leading supplier of zinc, and as a potential new source for germanium, indium, antimony and cobalt. The strategic and economic opportunity available to the nation is real and one not to be missed,” he added.
