DECLINING copper ore grades are forcing Japanese smelters to increase their use of scrap.
According to the Japanese copper industry, the copper content in the concentrate they are receiving has fallen to below 30% in 2008, as compared to over 32% in 2003.
Japan imports most of its copper ore from Chile, which is currently being affected by declining ore grades.
As a result, scrap now accounts for about 20% of smelters’ raw material. It was around 12% in 2006.
Japanese smelters such as Pan Pacific Copper have blamed their lower copper production outlook on the decline in copper ore grades.
The industry is as yet unable to comment on whether the trend is expected to continue, or whether scrap will be seeing greater presence in their copper-producing feedstock.
What is certain is the limit on the amount of copper scrap which can be used as feedstock. The Japanese smelters were designed to process concentrate. If too much scrap is used, the facilities could face malfunction.