Mining can likely raise the $4.6 trillion (C$7 trillion) it needs to meet energy transition metals demand by 2035, but weak productivity may prove a hard barrier to cross, McKinsey & Company Senior Partner Patrick Lahaie said.
McKinsey data show productivity rose 1% last year after lagging for at least a decade, with gains driven mainly by labour and capital efficiency.
“We don’t see the source of capital as being a bottleneck,” Lahaie told The Northern Miner’s Western Editor, Henry Lazenby, this month during the PDAC event in Toronto. “The element that is driving this the most is adoption of technology.”
The energy transition remains the main demand driver for copper and new demand from data centres and defence is adding pressure to supply. Data centres could account for 3% to 4% of global copper demand and defence as much as 8%, Lahaie said.
Watch the full interview below:
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