Dominic Barton, chairman of Rio Tinto, has expressed concern over the low rates of investment in the global mining sector, highlighting the risk it poses to the global energy transition and the widening supply gap in critical minerals like copper. Speaking at the Ecosperity conference in Singapore, Barton emphasized the substantial challenge in closing the supply gap and securing large supplies of minerals essential for building electric vehicles, solar plants, and wind farms to support efforts to reduce carbon dioxide emissions.
The demand for minerals like copper, lithium, and cobalt has significantly increased, with the amount of metals required for each kilowatt of generation capacity rising by 50% since 2010. Additionally, the transition to electric vehicles has amplified the demand for minerals, with electric cars requiring six times more minerals than traditional combustion engine vehicles, according to the International Energy Agency.
Barton highlighted the shortage of both minerals and the capital required to develop new mines, emphasizing the industry’s significant reduction in investments since 2015-2016. He stressed the need for the mining industry to build trust and improve public perception, acknowledging the industry’s role in global decarbonization efforts, which could necessitate more copper production in the next 25 years than ever before.
Furthermore, Barton acknowledged Rio Tinto’s past missteps, particularly referencing the destruction of rock shelters considered sacred by Aboriginal communities in 2020, describing the incident as “terrible” and “embarrassing.” Scott Clements, a partner at Tribeca Capital, emphasized the industry’s potential to generate significant returns and urged the industry to be perceived as part of the solution in the energy transition.