BHP Billiton: The transition to a low-carbon economy will boost global demand for minerals

According to MacKenzie, CEO of BHP Billiton, the world's largest mining company, the transition to a low-carbon economy will not weaken demand for minerals
.

BHP Billiton: The transition to a low-carbon economy will boost global demand for goods

In his keynote address at the Financial Times Global Commodities Summit in Lausanne, Switzerland, MacKenzie said it was a mistake
to think that renewable energy would reduce global raw material consumption.

MacKenzie told delegates: "There are people who think that renewable energy will reduce aggregate global demand for minerals, and I disagree
.
”

"China, the world's largest consumer of commodities, is also poised to become a global leader
in clean energy technologies.
Renewable energy infrastructure will create greater demand
for minerals.
For example, wind turbines require large amounts of copper and steel, while electric vehicles require copper components and grid power
.
MacKenzie added
.

Mackenzie said electrification and decarbonization will also drive demand
for higher-quality raw materials as steel mills and copper smelters transition to more efficient technologies.
Structural premiums will result in higher quality iron ore, metallurgical coal and copper concentrates
.

MacKenzie said population growth in developing countries and an increased urban middle class will be the biggest drivers of energy, metals and fertilizer demand in the coming decades
.

"Some reports predict that the world will need to spend $3.
7 trillion annually to develop and upgrade infrastructure
.
If we look at China's Belt and Road Initiative, steel demand is expected to increase by another 150 million tonnes
over the next decade.
MacKenzie pointed out
.

McKenzie stressed that the mining industry must be wary of protectionist clamour, noting that free trade is essential
to the health of the global economy.

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