POLICY RECOMMENDATIONS FOR A SUSTAINABLE COPPER SUPPLY CHAIN:

A CHINESE PER

SPECTIVE

The International Institute forSustainable Development (IISD)contributes to sustainable developmentby advancing policy recommendations oninternational trade and investment,economic policy, climate change andenergy, and management of natural andsocial capital, as well as the enabling roleof communication technologies in theseareas. We report on internationalnegotiations and disseminate knowledgegained through collaborative projects,resulting in more rigorous research,capacity building in developing countries,better networks spanning the North andthe South, and better global connectionsamong researchers, practitioners, citizensand policy-makers.

IISD’s vision is better living for all—sustainably; its mission is to championinnovation, enabling societies to livesustainably. IISD is registered as acharitable organization in Canada and has501(c)(3) status in the United States.IISD receives core operating support fromthe Government of Canada, providedthrough the Canadian InternationalDevelopment Agency (CIDA), theInternational Development ResearchCentre (IDRC) and Environment Canada,and from the Province of Manitoba. TheInstitute receives project funding fromnumerous governments inside and outsideCanada, United Nations agencies,foundations and the private sector.

POLICY RECOMMENDATIONSFOR A SUSTAINABLE COPPERSUPPLY CHAIN: A CHINESEPERSPECTIVE

Jason PottsFushan ShangBo ZhaoShaofu DuanZunbo ZhouMartin Streicher-PorteJohn Atherton

May 2011

CONTENTSPolicy Recommendations for a Sustainable CopperSupply Chain: A Chinese perspective ....................2Extraction........................................................5

Environmental impacts ...................................5Social impacts...............................................5

Refining ..........................................................5Environmental impacts ...................................5

Consumption....................................................6Environmental impacts ...................................6Social impacts...............................................6

Disposal ..........................................................6Environmental impacts ...................................6Social impacts...............................................6

Recommendations and opportunities....................7Recommendations for the international community...9Endnotes .......................................................12

List of figures and tablesFigure 1: Projected Global Consumption of Refined Copper .............................................3Figure 2: Chinese Copper Concentrates,Blister/Anode and Refined Copper (Major Importers) .............................................3Table 1: Distribution of Copper Consumption AmongMajor Consuming Markets (by sector) ...................4Figure 3: Distribution of Environmental Impacts (by production location) ..................................11Figure 4: Distribution of the Environmental ImpactsAcross the Copper Supply Chain .........................11

Photo credits:

Pages 2 & 13: iStockphoto©Christopher PollackPage 5: iStockphoto©Tim BucknerPage 6: iStockphoto©John WoodworthPages 9 & 10: iStockphoto©Michael Fuller

1ACKNOWLEDGEMENTSThis report summarizes the main findings and recommendations of the Chinese Global CopperSupply Chain Sustainability Analysis Project. IISD would like to thank the Chinese Ministry ofCommerce (MOFCOM), the Swiss State Secretariat for Economic Affairs (SECO) and the InternationalCouncil on Minerals and Metals (ICMM) for their financial and in-kind support, without which thisproject would not have been possible. More specifically, we would like to acknowledge thepersonal commitment and input of Weijing Yin from MOFCOM, Hans-Peter Egler from SECO andAnthony Hodge from the ICMM whose moral support and guidance was critical throughout theproject. Finally, but definitely not least, we would like to thank the team of expert contributors tothe project for their pointed, sometimes challenging, but always compelling, input, questions andoverall guidance. The contents of this report represent the views of the authors and do not implyagreement or endorsement of the projects expert contributors.

Project Implementers:

IISD:

Project Leader: David RunnallsProject Manager: Huihui ZhangTechnical Coordinator: Jason Potts

MOFCOM:

Project Leaders: Weijing Yin/Zhonghe MuProject Manager: Yuguo Zhao

Authors:

Jason PottsFushan ShangBo ZhaoShaofu DuanZunbo ZhouMartin Streicher-PorteJohn Atherton

Expert Contributors:

Jiahua PanZhongkui WangChristoph LangYannick RoulinArthur HansonAnthony Hodge

Photo: Chuquicamata, world’s largest copper mine.

2

POLICY RECOMMENDATIONS FOR A SUSTAINABLE COPPER SUPPLY CHAIN: A CHINESE PERSPECTIVE

POLICY RECOMMENDATIONS FOR A SUSTAINABLECOPPER SUPPLY CHAIN: A CHINESE PERSPECTIVE

Rapid advances in technological and economicdevelopment across the planet over the past twodecades have stimulated a widespread and rapidlyexpanding dependence on copper-based productssuch as electric motors, computers, mobile phones,household appliances and industrial machinery. Theunprecedented growth in global copperconsumption and production is placing growingpressures on both local ecosystems and finitecopper stocks, giving rise to a growing need forglobal strategies for sustainable copper supplychain management. At the same time, recent growthin copper production and consumption has beendominated by supply and demand from China, nowthe world’s most important producer and consumerof refined copper: this fact emphasizes the need toleverage Chinese leadership in building a globalsustainability strategy for the sector.

The consumption of refined copper has tripled since1970, reaching 18 Mt in 2008, and continues togrow at an average of 4 per cent per annum.1

Refined copper consumption makes up about 65 percent of total copper consumption, with theremainder being supplied by copper scrap. In 2008,copper scrap supply was estimated at approximately8 Mt.2 It is expected that copper consumption willmore than double by 2035, reaching approximately37 Mt (see Figure 1). Meanwhile, it is expected thatChina will account for 68 per cent of the globalincrease in copper consumption over this period.

China has already played a major role in expandingglobal access to copper-based products through itsefficient and low-cost manufacturing base. Although

China accounts for only 6 per cent ofglobal production of copper oreconcentrates, it is the single largestproducer of refined copper products (21per cent of global production) and coppersemis (50 per cent of global production).Moreover, while Chinese refined copperproduction has been steadily growing atan average of 15 per cent per annum overthe past decade, it has not matched thecountry’s consumption of refined copper.Between 2002 and 2008, China’s totalcopper usage (refined and scrap) doubledfrom 3.7 Mt to 7 Mt, accounting for justunder a third of global copper usage.3

Notably, China has rapidly beenincreasing its use of scrap copper as asource of copper for meeting itsconsumption needs. Growing from around100,000 tons in 1980 to over 3 Mt perannum in 2008,4 China currently suppliesover 40 per cent of its copper needsthrough copper scrap—a scrapcontribution that is notably higher thanthe current global average.

The remaining 60 per cent of Chinesecopper supply comes from virgin sourcesin the form of copper concentrate orrefined copper. China itself is the fourthlargest supplier of copper concentratewhich is almost entirely destined forChinese refining and consumption, Chileis by far the single largest foreign

3

supplier of both copper concentrate and refined copper to China, accounting for over half oftotal non-scrap copper supply to China. The majority of imports from other countries are in theform of copper concentrates, with Peru, Australia, Mongolia and Kazakhstan leading the way (seeFigure 2). These source countries for Chinese copper represent key targets for managing thesustainability of the Chinese global copper supply chain.

FIGURE 1: PROJECTED GLOBAL CONSUMPTION OF REFINED COPPER5

FIGURE 2: CHINESE COPPER CONCENTRATES, BLISTER/ANODE AND REFINEDCOPPER (MAJOR IMPORTING COUNTRIES)

2005

2008

2009

2010

2011

2012

2013

2014

2015

2020

2025

2030

2035

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

CAGR 1960-2010: 2.7%

CAGR 2010-2035: 2.9%

ChinaWorld

1,628

377

640

587

1,057

78

1,333

149

361

12

116

Weight (Thousand Metric Tonnes)

2001000 300 400 500 600 700 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1 ,700

Chile

Kazakhstan

Austalia

Finland

Japan

Mongolia

Namibia

Peru

Copper Concentrate

Blister/Anode Copper

Refined Copper

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POLICY RECOMMENDATIONS FOR A SUSTAINABLE COPPER SUPPLY CHAIN: A CHINESE PERSPECTIVE

Chinese demand for refined copper is being drivenby its own growing industrial base. In 2009, themanufacture of industrial products and consumergoods, accounted for 46 per cent of Chinese refinedcopper demand—in part stimulated by China’s roleas the single most important producer ofelectronics and machinery products globally.However, copper consumption is also beingstimulated by China’s own economic developmentto supply infrastructure and construction demandsat higher rates than in more developed copper-consuming countries (See Table 1).

China’s growing presence in the global coppersupply chain is generating demonstrable social andeconomic benefits both within and outside China.The Chinese Nonferrous Metals Industry Association(CNIA) estimates that more than one million peoplewithin China are directly employed in the copperextraction, refining and manufacturing processes.7

Similarly, growing foreign direct investment in keysupply countries such as Chile, Peru, Mongolia andZambia is driving significant infrastructuredevelopment and providing an important platformfor economic growth.8

Moreover, China’s prominent role in global coppersupply chains is itself a direct reflection of itsunique capacity to turn raw materials into high-value manufactured products at a low cost. China’sefficient and low cost production base provides the

global community with increased accessto a wide variety of copper-basedproducts which in turn contribute tooverall human well-being. The role ofChina within the global copper supplychain is therefore fundamentally—andundeniably—characterized by increasedglobal social welfare.

At the same time, growing demand forelectronics and other copper-dependentproducts also implies an intensification ofthe social and environmental challengesassociated with the production and tradeof copper products.9 Because copper is anon-renewable resource, its consumptionis systemically challenged by limitedglobal reserves. Current copper reservesare estimated at 550 Mt and are expectedto be exhausted by 2060 at currentutilization rates. Therefore, re-use,reduction and enhanced extractionefficiency are all imperatives within thesector as a whole to ensure its long-termsustainability.

More immediately, growing copperconsumption presents a number ofenvironmental and social challengesresulting from expanding activities at theextraction, manufacturing and wastedisposal stages of the supply chain.

TABLE 1: DISTRIBUTION OF COPPER CONSUMPTION AMONG MAJOR CONSUMINGMARKETS (BY SECTOR)

China European Union United States

Industrial Equipment 29% 23% 13%

Building & Construction 24% 40% 52%

Infrastructure 21% 10% 8%

Consumer Products 17% 15% 16%

Automotive 9% 12% 11%

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EXTRACTIONThe extraction stage of the copper supply chain isfaced with the most significant environmental andsocial challenges:

Environmental impacts: A “cradle to gate”10 lifecycleassessment commissioned by IISD attributes 70–75per cent of environmental impacts to the extractionand primary ore-processing stages of the coppersupply chain.11 The main sources of environmentaldegradation at extraction are related to:

Land degradation: current stocks of copper orehave an average of less than 1 per cent purity.As a result, more than 100 tons of materialmust be extracted to produce one ton of coppergiving rise to very large extraction impact onthe land surface.12 Many copper mines are openpit and lead to the removal of all forms ofvegetation over the area of the mine.13 Othersources of land degradation relate to the roads,tailings dams and mine facilities that typicallyaccompany a mining site. Land degradation cansignificantly disrupt existing ecosystems andcontribute to greenhouse gas emissions.14

Toxic chemical release: copper mininggenerates massive amounts of waste rock that,when exposed to air and water, can lead to acidrock drainage, a process whereby the naturalelements present in the rock react to produce anacidic or neutral runoff with dissolved metalsthat—if left unmanaged—can flow into waterstreams.15 Tailings dams are built to contain thetailings indefinitely but need to be managedover time and—particularly in certainenvironments—can be vulnerable to leakage.This can represent a serious threat to localwaterways and water tables and the ecosystemsdependent upon them.

Social impacts: Mine workers are exposed to avariety of occupational health and safety hazardsrelated to the use of heavy machinery and otherpractices associated with ore extraction.Communities will often experience higher noise anddust levels as a result of nearby mining operations.Copper is both a finite resource and a public good:

its extraction from a given locality comesat a social cost to that community whichmay not be covered by market prices oractual employment conditions.

REFININGThe refining process is predominantlydefined by its environmental impacts:

Environmental impacts: The refiningprocess generates between 20 and 25 percent of the copper supply chain’senvironmental impact. The mainenvironmental impacts from the refiningprocess arise from:

Air pollution: The copper refiningprocess, particularly smeltingoperations, leads to the generation ofsignificant quantities of potentiallytoxic airborne particles and gases.These constituents include sulphurdioxide, carbon dioxide and nitrogendioxide (Non-ferrous metals accountfor about 8 per cent of global sulphurdioxide production). In addition, theymay include toxic concentrations ofnumerous metals such as arsenic,nickel, lead, cobalt, mercury, etc.

Energy consumption: The copperrefining process can involve theheating of copper concentrate tohigh levels which require significantamounts of electricity. As copperdemand and production grow, the per ton greenhouse gas emissions are expected to rise due to a higherreliance on coal power sources. In Chile, for example, China’s mostimportant source of refined copper, a 50 per cent increase in refinedcopper production by 2020 isexpected to result in a doubling ofgreenhouse gas emissions (to 36 Mtby 2020).16

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POLICY RECOMMENDATIONS FOR A SUSTAINABLE COPPER SUPPLY CHAIN: A CHINESE PERSPECTIVE

CONSUMPTIONThe use phase of copper is generally associated witha range of social and environmental benefits.

Environmental impacts: As a conductor ofelectricity, the consumption of copper is oftenlinked to the consumption of electricity, which canhave negative environmental impacts. However,relative to other industrial materials, copper is ahighly efficient conductor of electricity andtherefore can be used to improve the efficiency ofindustrial machinery and appliances. Some of theapplications that copper can be used in as areplacement for less energy efficient substitutesinclude electric motors, power cables, transformersand solar panels.

Social impacts: Copper is used for a variety ofindustrial and consumer applications. About 65 percent of copper is used in electrical applications withthe majority of that being applied to electricalcables and lines. 50 per cent of copper consumptionis for the construction sector, making it the mostimportant single use of copper.17 Industrial andbusiness applications represent the second and thirdmost important uses for copper at 22 per cent and10 per cent respectively. The multiple uses ofcopper lead to significant gains in social welfareand human well-being.

DISPOSALCopper is 100 per cent recyclable and canbe reused indefinitely. The disposal stageof the copper supply chain therefore hassignificant potential for reducing theoverall environmental impact of thecopper supply chain.

Environmental impacts: By recyclingcopper scrap, the environmental impactsof copper production can be reduced byup to 75 per cent. At present, recyclingcurrently accounts for approximately onethird of global copper production;however, those rates are increasing andrepresent an important opportunity forimproving the overall environmentalfootprint of the sector. Imperfections inrecycling processes, and the co-use ofcopper with other materials in electronicsproducts, can generate the release oftoxic materials into the environment.

Social impacts: The main social impactsassociated with the disposal stage arerelated to worker exposure to heavymetals and organic compounds due to therecycling of e-waste. China faces specialchallenges and opportunities formaximizing the positive social impacts inthe disposal phase due to its exceptionallyactive informal recycling industry.18

7

RECOMMENDATIONSAND OPPORTUNITIESAs the world’s most important importerof copper ore, and the single mostimportant producer of refined copper andkey copper-based products, China fulfillsa unique role in the global copper supplychain. China has already made rapidadvances in reducing the environmentalimpacts of its primary production,resulting in average impacts that are lessthan the world average and less thanmost of the countries exporting primarycopper to China. Notwithstanding itsleadership in creating sustainableprimary production, there are importantopportunities to carry its learning andtechnological capacity to the rest of itssupply chain.

On the one hand, Chinese buyers andmanufacturers, have the capacity toestablish benchmarks for production fromtheir supply base. On the other hand,with its growing refining, smelting andmanufacturing capacity, China bears agrowing responsibility to ensure that itsprocessing and manufacturing activitiesare applied in accordance with the coreprinciples of sustainable development.Finally, China’s importance in copperrecycling presents some of the mostimportant gains for improving thesustainability impacts of the coppersupply chain. With this in mind, theGlobal Copper Markets project hasidentified the following opportunities for action by the Chinese Government:

Strengthen existing domesticenvironmental regulations withcomplementary industrial policy:

Among the most important environmentalimpacts of the global copper sector are thoseresulting from industrial processes related tocopper extraction and refining. The effectivenessof environmental regulations and objectives canbe significantly enhanced through the rapiddeployment of more efficient and cleanertechnologies. China’s rapid growth represents aunique opportunity to invest in cleanertechnologies. Key opportunities for focusingindustrial policy and technologies exist in suchareas as: comprehensive utilization of minetailings, mine reclamation, wastewater recyclingin extraction process; reduction of gas and dustemissions, reduction of energy consumption;promotion of advanced dismantling and sortingtechnologies and treatment of dioxin pollution inthe recycling process. China should direct positiveparticipation from industrial enterprises inpollution control and environmental protectionthrough industrial policy and fiscal incentives.

Bilateral sustainable economicdevelopment partnerships:

One of the key obstacles to the implementationof sustainable practices at production is due tothe absence of robust governance of theextraction process. As China increases its relianceon developing country supplies from countrieslike Zambia and Mongolia, ensuring sustainablepractice will require targeted investments inmonitoring, enforcement and implementation.Based on its strong commercial relationships withthese and other key developing country suppliers,China has an opportunity to play a proactive rolein helping build governance in key host countriesfor Chinese mining activity through economicdevelopment partnerships designed to promotesustainable production in the copper sector.

8

POLICY RECOMMENDATIONS FOR A SUSTAINABLE COPPER SUPPLY CHAIN: A CHINESE PERSPECTIVE

China corporate social responsibility(CSR) policy for copper companiesoperating in host countries:

As a complement to direct investments inbuilding governance capacity in key sourcecountries, the Chinese government can alsoleverage market forces to support and reinforcethe objectives of improved governance at theextraction phase by specifying relevantrequirements for both state-owned and privately-owned Chinese enterprises operating overseas oncopper mining projects (building on the State-owned enterprises operating in China onCorporate Social Responsibility Reporting andProtection of Labour Rights as well as the draft“Guidelines on Corporate Social ResponsibilityCompliance by Foreign Invested Enterprises”).

Legalization and monitoring of import of copper containing e-waste:

The social and environmentalchallenges associated with e-wastetreatment in China need to bebalanced with the clear need forsecondary copper and the social andenvironmental benefits of recycling.The current ban on e-waste importsforces potentially safe recycling of e-waste underground and exposesworkers and communities tounnecessary safety and environmentalhazards. There is therefore a growingneed to legalize and standardize thecustoms clearance procedures for wastemetal imports. Nationwide port,inspection site and equipmentstandards should also be developed formonitoring and managing waste metalimports at all ports. By establishingrules for the safe trade and handling ofsuch products and complementingthese with the legalization of e-wasteimports, the Chinese government couldplay a significant role in improving theglobal environmental impact of coppersupply chain.

9

RECOMMENDATIONS FORTHE INTERNATIONALCOMMUNITYChina does not, however, face these responsibilitiesalone. Chinese copper consumption is driven largelyby global demand for Chinese copper-basedproducts—products which are typically designedand consumed across Western Europe, North Americaand Japan. As buyers, developers and end-users ofcopper-based products manufactured in China, thesecountries bear a corresponding capacity andresponsibility to promote and secure best practicesfor sustainable development along the globalcopper supply chain. This responsibility needs to bebacked by firm commitments, action andinvestment. The Global Copper Markets project hasidentified the following opportunities for action bythe international community:

Establishment of an internationalinformation platform for the copper sector:

The global copper supply chain is defined by awide variety of processes and actors. Theeffective management of the copper supply chainrequires access to timely and accurateinformation on production capacities, standardsand policies. The International Copper StudyGroup (ICSG) provides a logical focal point forsuch activities. The work of the ICSG could besignificantly strengthened to serve sustainabledevelopment by gathering information not onlycore economic and policy parameters but also oncore environmental indicators such as, amongother things, carbon dioxide, sulphur dioxide andtailings emissions.

Establishment of an internationalcopper material flow strategy:

Ensuring the sustainability of thecopper supply chain over the longerterm will require clear and intentionalmanagement of global copper supplyand demand. Building on theInternational Copper Association’s“Copper Stewardship Initiative” andthe ICSG’s mandate for promotingtransparency and cooperation in theglobal copper sector, the internationalcommunity should act towards theestablishment of a “Global MaterialFlow Strategy” for the copper sectorsetting out targets and priorities forrecycling rates, mine management,refinery modernization and minereclamation.

Establishment of an internationalstandard for the sustainabletreatment of e-waste:

More efficient copper recycling willform a pillar of the long termsustainability of the global coppersupply chain. One of the majorchallenges in recycling copper undercurrent conditions relates to thegrowth of informal recycling practicesand the corresponding social andenvironmental dangers this poses. Theinternational community could play asignificant stimulus of the sustainablerecycling of copper from electricalproducts by developing aninternational e-waste treatmentstandard in accordance with the spiritand principles of the Basel Convention.

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POLICY RECOMMENDATIONS FOR A SUSTAINABLE COPPER SUPPLY CHAIN: A CHINESE PERSPECTIVE

Establishment of a global private sectore-waste partnership:

Building on and working with existing multi-stakeholder e-waste partnerships, such as theMobile Phone Partnership Initiative, The GlobalKnowledge Partnerships in E-waste Recycling, TheGlobal Computer Refurbishment and RecyclingPartnership; and the Solving the E-wasteProblem: A Synthetic Approach Initiative, theChinese government, in collaboration with theUnited Nations Environment Program, couldfacilitate a global multi-stakeholder, supplychain-based approach to monitoring andmanaging trade in e-Waste.

Mandate eco-design for copper recyclability:Access to copper embedded within products willdepend in part on intentional design to allowefficient recovery. The establishment ofinternational guidelines for eco-design relatedspecifically to enabling, inter alia, efficientcopper extraction could help support thetransition to a more complete recovery process inthe copper supply chain.

Capacity building for safe andsustainable copper extraction practices indeveloping countries:

The greatest environmental impacts of the globalcopper supply chain are found within developingcountry suppliers. Chile, Mongolia and Kazakhstanrepresent major suppliers of primary copperresources to China and the rest of the world andgenerate higher than average environmentalimpacts through the copper extraction process.China and the global community have a role toplay in facilitating the adoption of cleaner

technologies and ensuring that minewaste and reclamation are properlymanaged. A global fund aimed atpromoting and supporting bestpractices in copper extraction couldplay an important role in bringingdeveloping country supply up tointernational accepted standards.

International cooperation ontechnologies for energyefficiency and emissionsreduction throughout globalcopper supply chain:

Energy efficiency and emissionsreductions at the extraction, refiningand consumption stages of the supplychain represent key targets for buildingthe sustainability of the global coppersupply chain. Energy demand andenergy-related environmental impactsare spread across the global coppersupply chain. The internationalcharacter of the energy challengewithin the copper sector necessitates aglobal approach to building energyefficiency throughout the chain. Aglobal action plan and consortiumaimed at promoting the developmentand use of energy efficienttechnologies at the extraction, refiningand equipment design phases of thesupply chain could reduce the globalimpact of the supply chainsignificantly. Prioritization should beplaced on phasing out high-energyconsuming technologies such asreverberatory furnaces.

11

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9

Copper / Primary / North America

Copper / Primary / Latin America

Copper / Primary / Europe

Copper / Primary / Asia and Pacific

Copper / Primary / Indonesia

Copper / Primary / Global

China Average

Human Health Ecosystem Quality Resources

FIGURE 3: DISTRIBUTION OF ENVIRONMENTAL IMPACTS (BY PRODUCTION LOCATION)THE ENVIRONMENTAL IMPACTS OF CHINESE PRODUCED CATHODES IS, ON AVERAGE, LESS THAN CATHODE PRODUCED IN ALL OTHER REGIONS. ENVIRONMENTAL IMPACTS IN ECO-INDICATOR 99 POINTS PER KG CU-CATHODE PRODUCED.

The environmental impacts of the copper supply chain are concentrated at the mining stage of production whichaccount for more than 75 per cent of overall environmental impacts. Impacts of Chinese-based production areeither lower or equal to those of comparative global processes.

FIGURE 4: DISTRIBUTION OF THE ENVIRONMENTAL IMPACTS ACROSS THE COPPER SUPPLY CHAIN (BY PROCESSING LOCATION AND PROCESSING METHOD). GLOBAL REPRESENTS GLOBAL AVERAGE. CHINESE REPRESENTS CHINESE AVERAGE.

10%0% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Vanuykov / Global Ore

Vanuykov / Chinese Ore

Reverberatory / Global Ore

Reverberatory / Chinese Ore

Outocumpu / Chinese Ore

Outocumpu / Global Ore

Noranda / Chinese Ore

Noranda / Global Ore

Blast Furnace / Chinese Ore

Blast Furnace / Global Ore

Ausmelt / Global Ore

Ausmelt / Chinese Ore

Conversion & Anode Casting

Electrorefining TransportReductionMining

76.2% 22.4%

26.1%

21.9%

23.5%

22.3%

23.8%

22.3%

23.2%

22.4%

25.8%

22.3%

22.1%

73.0%

76.6%

75.5%

76.2%

75.2%

76.3%

75.8%

76.2%

73.3%

76.2%

76.8%

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POLICY RECOMMENDATIONS FOR A SUSTAINABLE COPPER SUPPLY CHAIN: A CHINESE PERSPECTIVE

ENDNOTES1 International Copper Study Group (2009). The World Copper Factbook.

2 Jolly, J.L. (2010). The U.S. Copper-base Scrap Industry and its By-products. Copper Development Association Inc.

3 International Copper Study Group (2009). The World Copper Factbook.

4 International Copper Study Group (2009). The World Copper Factbook.

5 CRU Strategies (2010).

6 As data was unavailable for Namibia in 2009, this value is from 2008.

7 See http://www.iisd.org/pdf/2011/sustainable_development_chinese_copper.pdf. CNIA notes the number issignificantly larger if related sectors are included.

8 In 2009 China invested an estimated $4.6 billion in the mining sector. See Wang E. (2009, May). China’s investment inAfrica for copper production. IWCC Joint Meeting, Seoul. Available athttp://www.thebeijingaxis.com/upload_files/download/Presentations/China's%20Investment%20in%20Africa%20for%20Copper_May2009.pdf

9 Increasing demand is also creating increasing pressures on trading relationships.

10 The diversity of uses of copper prevented the performance of a full copper lifecycle analysis at the supply chain level.The IISD commissioned “cradle to gate” lifecycle analysis was performed by EMPA and covered the copper supply chainfrom extraction to processing into semis (plates, rods, pipes etc.).

11 See http://www.iisd.org/pdf/2011/sustainable_development_chinese_copper.pdf

12 von Gleich, A., Ayres, R.U., & Gössling-Reisemann, S. (2006). Sustainable metals management: Securing our future-stepstowards a closed-loop economy. Dordrecht: Springer.

13 Note that the degree of actual impact varies depending on the local conditions and climate—many copper mines are indesert regions where land degradation impacts are reduced.

14 Sustainably managed mines will reduce the long-term impacts of land degradation by taking remedial action followingmine closure.

15 See the International Network for Acid Prevention at www.inap.com.au for more info.

16 Gaete, P. (2009, Dec.). Copper sector stands to double carbon dioxide emissions by 2020. Business News Americas.Retrieved from http://www.bnamericas.com/news/mining/Copper_sector_stands_to_double_carbon_dioxide_emissions_by_2020_-_Cochilco

17 UNEP (2010). Metal stocks in society: Scientific synthesis. International Panel for Sustainable Resource Management,Working Group on the Global Metal Flows.

18 While the informal recycling sector can expose workers to dangerous chemicals, it also provides significant employmentand environmental opportunities for China. See IISD (2008). Sustainable electronics and electrical equipment for Chinaand the world: A commodity chain sustainability analysis of key Chinese EEE product chains.