American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Seismic Disruptions Could Cost Copper and Rhenium Industries Billions, USGS Study Shows

by admin July 20, 2024
July 20, 2024
Seismic Disruptions Could Cost Copper and Rhenium Industries Billions, USGS Study Shows

Astudy published by the US Geological Survey shows that earthquakes can have a ‘substantial’ impact on mining, smelting and refining operations, creating lasting impacts for the global economy and supply chains.

Focusing on copper and rhenium, a silver-gray transition metal, the study aims to quantify the risks that earthquakes pose to supply — a variable that has not previously been systematically categorized.

Copper production and risks

According to the study, many of the world’s largest copper and rhenium production facilities are located in regions prone to high seismic activity, such as South America, East Asia and the Pacific.

Chile and Peru are particularly significant for copper, taking the first and second spots for global output.

The US Geological Survey notes that 76 out of 101 combined copper-producing facilities in both countries are located in areas with a high probability of experiencing significant seismic activity within the next 50 years.

The analysis estimates the expected annual disruption (EAD) of global copper production due to earthquakes, noting that it ranges from 0.3 to 1.1 percent of worldwide production. Smelters fall between the 1.8 and 4 percent bracket, while refineries are within the 1.5 to 3.3 percent range.

The potential financial impact of these disruptions is substantial. The study estimates revenue loss from earthquake-induced disruptions to range from US$315 million to US$1.29 billion for copper mining, US$1.92 billion to US$4.33 billion for copper smelting and US$2.06 billion to US$4.52 billion for copper refining.

Rhenium production and risks

Rhenium, a by-product of copper and molybdenum mining, is crucial for making superalloys used in jet engines.

The US Geological Survey study identifies 12 major rhenium production facilities globally, with significant capacities located in the US, Chile and South Korea. Like copper facilities, many rhenium production sites are in high-risk seismic zones, such as parts of East Asia, posing a similar threat to their production stability.

In terms of impact, rhenium has an EAD of 0.32 to 1.32 percent. The study tallies estimated revenue loss in disrupted rhenium production to range from US$337,000 to US$1.4 million.

Implications for global supply chain and economy

The study further underscores the tangible effects of disrupted supply chains to the global economy, such as higher prices for commodities, production delays and economic losses across sectors dependent on these minerals.

While the ability of unaffected facilities to ramp up production and compensate for losses is a mitigating factor, the overall economic impact would still be significant, especially for countries heavily reliant on copper and rhenium.

Dr. Kishor Jaiswal, a US Geological Survey research structural engineer and lead author of the study, believes that the framework produced by the study can help national governments and key producers make crucial decisions, and can serve as a template for similar studies on other mineral commodities.

“While our study assessed the potential for the disruption to the supplies of copper and rhenium due to earthquake hazards, this published framework will serve as a template for other mineral commodities of interest around the world,” he explained in a Thursday (July 18) press release.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
Ticketmaster offers four tickets for $80 to selected shows amid summer concert slowdown
next post
Resouro Publishes Initial Resource for Tiros Titanium-Rare Earths Project in Brazil

Related Posts

AUD/USD forecast: forms H&S pattern ahead of RBA...

March 31, 2025

2 Biggest Medical Device ETFs in 2024

February 14, 2024

Top reasons why Alibaba stock price is about...

March 31, 2025

Here’s why the GLD ETF is surging and...

February 10, 2025

Scottish Mortgage stock is recovering: still trades at...

October 27, 2024

Here’s why the XPeng stock price may surge...

February 5, 2025

Carlyle Group stock is a bargain with potential...

September 25, 2024

5 Silver Stocks that Pay Dividends (Updated 2024)

May 15, 2024

Reddit stock price has imploded: is it safe...

March 11, 2025

iMetal Resources to Consolidate Share Capital

March 1, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved