Mining companies upbeat about energy transition despite US elections

Mining companies with operations in Latin America remain optimistic despite emerging risks posed by the possible protectionist policies of the next US government.

Although US president-elect Donald Trump is a climate change denier and plans to impose heavy tariffs on products from China, which would slow the energy transition and the need for copper, industry players are confident that demand will remain high enough to overcome these obstacles, and that sector investments will continue.

“The desire for an energy transition is so strong, so far-reaching [that it will neutralize protectionist policies]. The global business community already accepts it, and they understand the importance of reducing carbon emissions,” Richard Adkerson, chairman of mining company Freeport McMoran, said during a panel discussion at the APEC CEO Summit in Lima.

He added, "let's look at China with the sale of electric vehicles: the industry is booming, copper is needed there, and those are the forces that will continue despite the political disruptions."

Freeport McMoran owns 55.1% of Minera Cerro Verde which operates the Cerro Verde copper mine in Peru, and it holds 51% of Minera El Abra, operator of El Abra copper mine in Chile. This year, the miner expects both units to produce a combined 544,310t of the metal.

Juan Andrés Errázuriz, CEO of Enaex, which specializes in mining explosives and blasting services, said the impetus comes from society as a whole, above all due to the demand created by new technological tools.

The energy transition “is a clear trend regardless of political changes, and it will continue,” said Errázuriz. In line with reducing the sector's carbon footprint, Enaex is capable of producing green ammonia, a chemical component used to manufacture mining explosives and which does not generate CO2.

“In Cusco region, we have a plant where we produce green ammonia, which was certified two months ago. We have a whole range of CO2-free products,” he added.

According to Adkerson, the world will continue to demand clean energy despite possible disincentives, as recent climate events show.

“You can hear debates, but you only have to look at what happened in Spain with the floods, the hurricanes in the US, the forest fires. It's clear that we need clean energy in our mines, and we have various projects such as Copper Skies in the US; we're evaluating ways to incorporate electric trucks at Cerro Verde, and even change our energy outlets, even explosives,” Adkerson said.