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China has announced its net-zero target for carbon emissions by 2060. To meet this goal, China has been proactive during the 13^th Five-Year plan pushing innovative policies that will influence the future of the country’s sustainability strategies. This effort has led to the successful development of the circular economy in China, and copper recycling has played a key role.

China’s copper recycling initiatives are essential to its ongoing sustainability approaches. By considering recent developments in circular economy policies and current trends in the copper recycling industry, China will be able to develop intentional strategies to meet its ambitious climate goals.

THE CURRENT STATE OF CHINA’S CIRCULAR ECONOMY POLICIES

During the 13th Five-Year Plan period (2016–2020), the National Development and Reform Commission (NDRC) issued the Initiative to Guide the Shift Toward Circular Development. The initiative expanded the circular economy concept from the industry level to include entire sectors and broader enterprises.

During this time, China also sought international collaboration in its circular economy goals. In 2018, Director He Lifeng of the NDRC and Vice President of the European Commission, Jyrki Katainen, jointly signed a Memorandum of Understanding on Cooperation in the Circular Economy under the witness of Premier Li Keqiang; President of the European Council, Donald Tusk; and President of the European Commission, Jean-Claude Juncker. Cooperation between China and the EU has enhanced bilateral exchanges regarding the circular economy and will continue to contribute to the implementation of the China-EU 2020 Strategic Agenda for Cooperation and the 2030 Agenda for Sustainable Development. Joint action will improve global resource efficiency and help all parties to achieve their sustainable-development goals.

The 14th Five-Year Plan (2021 – 2025) proposes comprehensively promoting the circular economy and building a multi-level, resource-efficient recycling system. In 2021, the State Council released the Guiding Opinions on Accelerating the Establishment and Improvement of a Green and Low-Carbon Circular Development Economic System, which states that progressing toward the development of a low-carbon circular economic system and a green transformation of economic and social development is an essential strategy for solving China’s resource, environmental and ecological challenges.

FOUR KEY TRENDS IN CHINA’S COPPER RECYCLING INDUSTRY

1. Strategic Patterns Taking Shape

After nearly 70 years of development, China’s copper recycling industry has grown in size and strength, transforming from labor-intensive processes to an innovative model of technologically driven practices. The formation of complete industrial clusters coupled upstream and downstream sectors in the Pearl River Delta, the Yangtze River Delta, the Bohai Rim and the Jiangxi regions. The coordination of the industrial chain enhanced the concentration of industrial initiatives and nurtured higher-quality enterprises. Specifically, enterprises above a designated scale account for more than 60 percent. The recycling industry developed into a strategic landscape in which large-scale enterprises take the lead and small and medium-sized enterprises contribute to the core of the industry.

2. Innovative Applications with Remarkable Results

Critical recycling processes, such as pretreatment, smelting and environmental protection technology, have made significant breakthroughs. China’s copper industry has implemented the latest scientific and technological innovations in copper recycling. Many enterprises have also used Kaldo furnaces and NGL furnaces for processing scrap copper, as well as production lines converting copper scrap to high-grade copper rods. Through these advanced applications, the smelting process of copper recycling and the resource conservation from electronic waste are becoming harmonized.

3. Improvement to Industrial Policies

China has continued to introduce new environmental protection policies and standards to promote copper recycling. China is committed to a comprehensive system of industrial policies. Efficient resource use, as well as upgrading and recycling automobiles, home appliances and consumer electronic products are top policy priorities. To accomplish these goals, China continues to promote the recycling of old products, extend the responsibility of manufacturers and roll out new policies, including the new Solid Waste Pollution Prevention and Control Law and the National Hazardous Waste List (2021 Edition). These policies also include the “waste-free cities” pilot program, industrial pollutant discharge standards and pollution permits, as well as commissioned nationwide research and development projects on solid waste. These efforts are of great significance for standardizing the development of copper resource recycling and pollution prevention in the recycling process.

4. Resource Conservation is a Shared Value

Given China’s scarce copper reserves, importing high-grade copper scrap is an indispensable part of China’s copper raw material supply system. China has established new standards for raw materials, including recycled brass and copper. With these new standards, China can import pre-processed, recycled raw materials arriving from overseas that meet these standards, helping China supplement demand.

China has prioritized the development of its circular economy and recycling management systems, making significant headway that will contribute to China’s ongoing and future sustainability strategies. The copper industry plays an essential role in the development of China’s circular economy. Through continued innovation in both policy and technology, China’s copper industry will be a central contributor to China’s recycling advancement and resource conservation.

 

Zhao Kai, MBA, Beijing University. Executive Vice President and Secretary General, China Association of Circular Economy. Zhao Kai provides expertise in leading and guiding government agencies on major circular economy and energy policymaking. He has studied and promoted energy-savings initiatives in China’s industrial and transportation fields for more than 15 years, particularly in the application of the high-efficiency motors, transformers, power cables and other electrical equipment. He is a member of several national policy and standard making committees and has received several prizes in these roles.

About the Copper Alliance®

The Copper Alliance is a network of regional copper centers and their industry-leading members. It is responsible for guiding policy and strategy and for funding international initiatives and promotional activities. Headquartered in Washington, D.C., the organization has offices in three primary regions: Europe, Asia and North America. The Copper Alliance has partnerships and programs in more than 100 countries.

Sustainability is at the forefront of China’s plans. The 14^th Five-Year plan outlines targets for climate action and ambitious commitments for carbon neutrality by 2060. China’s ongoing commitment to the circular economy is a key component in achieving these goals.

China’s implementation of copper recycling initiatives is a prime example of China’s circular economy in action. China’s urban mining and recycling policies drive copper recovery and efficient resource management, making a significant impact on China’s material demands and sustainability strategies.

CHINA’S DEVELOPMENT OF THE CIRCULAR ECONOMY

The People’s Republic of China has a long history of recyclability initiatives, establishing energy conservation standards in the 1970s. Subsequent resource development and conservation guidelines throughout the 1980s led to the initial policies and regulations relating to the circular economy.

The Chinese government has since made proactive efforts to promote clean production and resource conservation, carrying out various pilot programs in all regions. In 2004, China’s National Development and Reform Commission (NDRC) began coordinating the management of the circular economy. That year, the Commission held its first national circular economy work conference, officially making the development of the circular economy an economic development model and a national strategy.

China made the strategy into law in 2009 with the implementation of The Circular Economy Promotion Law of the People’s Republic of China, providing a legal commitment to developing the circular economy, improving resource utilization efficiency and protecting the environment. China’s first regional circular economy development plan, The Master Planning of Circular Economy in Gansu Province, was approved by the State Council later that year.

China also listed the development of the circular economy as a major strategic task in its 12^th (2011 – 2015) and 13^th (2016 – 2020) Five-Year plans. To take action on its circular economy model, China launched a series of projects to promote the circular economy, including the “Ten-Thousand-Hundred” Quality Improvement for Excellence initiative, pilot implementations in counties and cities, circular transformations of industrial parks, “Urban Minerals” demonstration bases, resource recycling bases, “waste-free cities” pilot programs and green industry demonstration bases. These initiatives and broader policy action have driven China’s circular economy to new heights of development and effectively promoted the recycling of nonferrous metals like copper.

CIRCULAR COPPER IN CHINA

While China is the world’s largest copper end-use market, its refined copper production accounts for only about one-fifth of the world’s total and 5.5 percent of global copper resource reserves. As China continues to industrialize, China’s copper resource needs will become highly dependent on imports. Copper’s circularity helps to close this gap between supply and demand. With an infinite life cycle, copper can be completely recycled without losing any of its original properties. Recycling scrap copper will help alleviate China’s over-reliance on imported copper and provide a strong guarantee for China’s future resource security. Scrap copper recycling also saves energy and reduces carbon emissions. According to comparative estimates, recycling one tonne of copper is equivalent to saving about one tonne of standard coal, saving nearly 400 m³ of water, preventing 380 tonnes of solid waste and reducing sulfur dioxide emissions by 0.137 tonnes.

China’s circular economy policies and copper recycling initiatives have developed hand in hand. Copper production from recycled copper resources increased from about 19 percent in the 1970s to about 33 percent in the mid-1990s. In the 21st century, China’s copper recycling has grown from more than 300,000 tonnes in 2000 to nearly 2.3 million tonnes in 2015, reaching about 3 million tonnes in 2019.

URBAN MINING FOR “URBAN MINERALS”: DEMONSTRATION BASES ADVANCE CIRCULAR COPPER

Urban mining has been an essential strategy for copper recovery, putting China’s circular economy policies into action. The NDRC and the Ministry of Finance jointly promoted the construction of the national “Urban Minerals” demonstration bases at the beginning of the Twelfth Five-Year Plan period. The bases recover and recycle renewable resources from urban waste and industry, reducing energy use and carbon emissions while contributing to sustainability strategies. The Chinese government approved a total of 49 national-level “Urban Minerals” demonstration bases covering 27 provincial-level regions, more than 80 percent of which are located in eastern and central China. Upon completion, the bases’ renewable resource processing capacity reached more than 40 million tonnes annually. The renewable resources gathered at the bases include metal scraps, plastics, paper, rubber, scrapped cars, glass and electronic products.

As an energy-saving, cyclical and strategic secondary resource, “urban minerals” such as copper exhibit remarkable potential for resource conservation More than 10 bases have copper resource recycling industrial chains, which standardize and integrate smaller copper recycling companies into the larger recycling process. The industrial chains also aid those copper recycling companies facing additional environmental challenges by providing greater access to improved technical equipment. Overall, the copper recycling industrial chains have positively contributed to the development of China’s copper recycling industry.

Copper recycling has occupied a pivotal position in China’s copper industry and will continue to support China’s material demand throughout the industrialization process, making outstanding contributions to China’s economic growth and strategic approach to carbon neutrality by 2060.

 

Zhao Kai, MBA, Beijing University. Executive Vice President and Secretary General, China Association of Circular Economy. Zhao Kai provides expertise in leading and guiding government agencies on major circular economy and energy policymaking. He has studied and promoted energy-savings initiatives in China’s industrial and transportation fields for more than 15 years, particularly in the application of the high-efficiency motors, transformers, power cables and other electrical equipment. He is a member of several national policy and standard making committees and has received several prizes in these roles.

About the Copper Alliance®
The Copper Alliance is a network of regional copper centers and their industry-leading members. It is responsible for guiding policy and strategy and for funding international initiatives and promotional activities. Headquartered in Washington, D.C., the organization has offices in three primary regions: Europe, Asia and North America. The Copper Alliance has partnerships and programs in more than 100 countries.

August 25, 2020

Kennecott Utah Copper LLC, Rio Tinto’s site in Utah, United States, has become the first producer to be awarded the Copper Mark.

To achieve the Copper Mark, Kennecott’s operations were independently assessed across more than 30 criteria covering the environment, community, business and human rights, labor and working conditions, and governance categories.

Demonstrating a commitment to responsible production and transparency, Kennecott will meet LME’s responsible sourcing requirements and contribute to the United Nations Sustainable Development Goal 12.

The Copper Mark is the first and only program for responsible production in the copper industry. Originally developed by the International Copper Association with input from a broad range of stakeholders including customers, NGOs and producers, the Copper Mark is now an independent entity with a multi-stakeholder council.

For the complete announcement of Kennecott’s award of the Copper Mark, click here. 

For more information about the Copper Mark’s application and assurance process, click here.

About Kennecott
Rio Tinto Kennecott is a fully integrated mining operation just outside Salt Lake City, Utah, U.S., and a fully owned unit of Rio Tinto. For more than 110 years, Kennecott has been mining and processing minerals from the rich ore body of the Bingham Canyon Mine. In addition to Bingham Canyon, the subsidiary possesses other facilities at South Jordan in the Salt Lake Valley including a refinery, a concentrator and a smelter.

About Copper Mark
The Copper Mark is an assurance framework available for the copper industry to demonstrate its responsible production practices and its contribution to the United Nations SDGs. The Copper Mark offers a comprehensive system that addresses 32 environmental, social and governance issues related to the responsible production of copper, using the Responsible Minerals Initiative’s (RMI) Risk Readiness Assessment. Developed and funded by the International Copper Association (ICA), the Copper Mark is incorporated as an independent entity headquartered in the United Kingdom. For additional information visit coppermark.org.

About the International Copper Association
The International Copper Association’s brings together the global copper industry to develop and defend markets for copper and make a positive contribution to the UN’s Sustainable Development Goals. Headquartered in Washington, D.C., ICA has offices in three primary regions: Asia, Europe and North America. ICA and its Copper Alliance® partners are active in more than 60 countries worldwide. For additional information, please visit www.copperalliance.org.

Since the onset of the coronavirus, ICA’s global members have exercised agility, innovation and collaboration to protect their employees and the communities where they operate. Guided by social responsibility and community well-being, proactive players in the copper industry ensured the health and safety of their employees and assisted the larger community by sparing no effort or resources.

KGHM transports critical medical equipment

At KGHM Polska Miedź S.A., not only were stringent procedures and frequent cleaning introduced, but the producer brought the world’s largest airplane full of personal protection equipment (PPE) from China to Warsaw.

After a special appeal from the Polish President Andrzej Duda and Prime Minister Mateusz Morawiecki, KGHM ensured the Antonov AN-225 loaded with PPE landed at Warsaw’s Okęcie airport.

The aircraft was filled with a total of 600,000 medical masks, over 250,000 pairs of overalls, over 10,000 pairs of protective goggles, about 150 ventilators and almost 1.5 million masks.

The total value of medical materials carried by the air transport was close to $15 million.[1] Since the first shipment was completed in March 2020, KGHM has continued to organize transportation for additional shipments of protective gear.

Teck supports the global response and future recovery efforts

When the pandemic reached North and South America, Canadian-based producer, Teck, put in place necessary measures to protect its workers and communities. In addition to extensive preventative measures and employee resource support, Teck created a $20 million fund to support global pandemic response and future recovery efforts.[2]

To date Teck has:

-Donated one million KN95 masks to British Columbia’s healthcare system
-Created a community investment fund to support local organizations in Canada, Alaska and Chile
-Provided $250,000 to the Canadian Red Cross
-Donated $500,000 to UNICEF (collaborating with the World Health Organization Solidarity Response Fund) for critical medical and sanitation supplies, equipment and training in over 180 countries
-Contributed $250,000 to the China Foundation for Poverty Alleviation to support children in rural communities in China
-Presented a $250,000 contribution to the VGH and UBC Hospital Foundation (Vancouver General Hospital, British Columbia)
-Made $1 million available to advance the use of copper products supporting infection control and prevention[3]

Anglo-American ensures a caring touch

During the pandemic, copper producer Anglo-American ensured its employees remained safe and healthy. Implementing an extensive health awareness and support program called “We Care,” the program protects the health and well-being of Anglo-American’s 90,000+ employees and full-time contractors around the world. The program assists employees to understand how to protect themselves and others from catching the virus, monitors their health to pick up early symptoms and manages their health if they test positive for COVID-19.[4]

Anglo-American also ensures there is a site-specific response and extends this support into the community. For example, in Peru at Quellaveco, a range of necessities were provided, such as:

-12,000 nonperishable food packages, plus 3,000 packages with agricultural products
-4,350 meal packs a day to health employees and volunteers, the army and police
-500,000 COVID-19 quick testing kits in partnership with the National Mining Society
-10,000 protection masks and pairs of gloves for police and army forces
-Vehicles to help transport health personnel
-6 intensive care bed stations, with all required equipment, including ventilators

Anglo-American’s response to the coronavirus has been recognized by the World Economic Forum for providing essential support to host communities around the world—including Africa, Australia and the Americas.[5]

BHP: Maintaining healthy people and operations

With over 72,000 employees, BHP recognized that each country where it operated would have a unique response to the pandemic. It decided to create regional emergency management teams and a CEO-level crisis management team to coordinate with country-specific health authorities and governments.

Since the onset of the outbreak, the Australian-based copper producer has worked to pay all outstanding invoices to small and Indigenous businesses in seven days. Additionally, BHP created a six million AUD fund to support contracted employees from labor-hire companies who were not entitled to sick leave, as well as one-off payments for people quarantined after entering Australia.[6]

To support its operations and surrounding communities, BHP established a 50 million AUD Vital Resources Fund, which will go to essential community services, mental health resources and critical infrastructure.[7]

Grupo Mexico aids rural communities

The pandemic has highlighted a shortage of hospital beds, facilities and medical services in rural regions. In a public-private partnership with the Mexican government and BBVA Mexico called “Together for Health,” Grupo Mexico focused on equipping the country’s hospitals and healthcare workers with ventilators and supplies.[8] That includes providing 10,000 protection kits, which will go to 80 rural hospitals to support the fight against the pandemic.[9]

In the southern Oaxaca state in Mexico, Grupo México aided the construction—in less than 10 days—of a 60-bed, 6,800 square meter hospital. Until Grupo Mexico became involved, the hospital’s construction was incomplete, and equipment and supplies could not be secured. Grupo Mexico invested $7.8 million so the hospital could be completed and equipped to assist the local community. The hospital joins a contingent of nine other new facilities ready to treat coronavirus cases in Mexico.[10]

Glencore launches global community support fund

Glencore operates more than 180 sites and offices in over 35 countries. The scale and diversity of its operations mean the impact of the virus varies by location. To respond to the individualized needs of each operation, the company established the Glencore Community Support Fund.

The $25m fund is flexible and responsive. It complements existing efforts by providing the support communities need, including working with local authorities to provide clean water, hygiene products and medical equipment. In some regions the fund will be used to support students’ education despite the closure of schools. The Glencore Community Support Fund donated $550,000 to the Antofagasta Regional Hospital in Chile to provide medical devices and PPE. This follows an earlier donation to purchase mechanical ventilators for the hospital.[11]

Antofagasta in the fight to protect Chileans

In Chile, protecting the health and safety of employees and contractors is critical for Antofagasta. The company has set up a $6 million community fund in Choapa Province and Antofagasta to help fight the virus. It also established a task force to review the company’s actions and work with local communities to develop a coordinated approach. Antofagasta has protected its workforce by limiting its operations to half or fewer employees to prevent the spread of infection.

Rio Tinto: we are all in this together

Rio Tinto understands the difficulties faced by rural and heavily impacted communities during the pandemic. They established a $25 million fund to help communities fight back. In Australia, 6,000 liters of locally made hand soap were donated to at-risk Indigenous communities. Additionally, Rio Tinto donated more than 600 liters of soap and cleaning products to nine schools and childcare centers in Western Australia to assist with a safe reopening.[12]

To support China’s efforts to mitigate the impact of the coronavirus, Rio Tinto donated $1 million to the Chinese Red Cross. The funds were used to support hospital upgrades and purchase medical supplies across areas most affected by the outbreak. The Red Cross Foundation, the Chinese Government’s preferred foreign donor, regularly contributes to China’s medical aid program and has been actively raising funds to strengthen medical resources in the affected areas.[13] Rio Tinto continues working with Chinese partners to identify other practical ways to offer support.

In addition to donations made to national and international communities, Rio Tinto’s Fund will also include further investment in childhood education and financial literacy programs and support remote learning as it becomes the global norm.[14]

For more information on ICA’s membership and response to the coronavirus, visit here.

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[1] KGHM Polska Miedź S.A. imports medical equipment costing over USD 15 million from China. The first plane has already landed! (2020, March 26). https://media.kghm.com/en/news-and-press-releases/kghm-polska-miedz-s-a-imports-medical-equipment-costing-over-usd-15-million-from-china-the-first-plane-has-already-landed

[2] Teck updates during COVID-19. (n.d.). https://www.teck.com/updates/#19

[3] Teck Announces $20 million COVID-19 Response Fund. (2020, April 16). Retrieved from https://www.teck.com/news/news-releases/2020/teck-announces-20-million-covid-19-response-fund

[4] Anglo American provides extensive COVID-19 support to employees and host communities where it’s most needed. (2020, April 06). Retrieved from https://www.angloamerican.com/media/press-releases/2020/06-04-2020

[5] Clift, K., & Court, A. (2020, March 28). COVID-19: How companies are responding. Retrieved from https://www.weforum.org/agenda/2020/03/how-are-companies-responding-to-the-coronavirus-crisis-d15bed6137

[6]BHP increases support for local business and contract labour hire during Covid-19 pandemic. (2020, March 19). Retrieved from https://www.bhp.com/media-and-insights/news-releases/2020/03/bhp-increases-support-for-local-business-and-contract-labour-hire-during-covid-19-pandemic/

[7] BHP establishes $50 million (AUD) Vital Resources Fund to help support regional communities. (2020, March 25). Retrieved from https://www.bhp.com/media-and-insights/news-releases/2020/03/bhp-establishes-$50-million-aud-vital-resources-fund-to-help-support-regional-communities/

[8] BBVA Mexico and Grupo Mexico Donate Ventilators for Treatment of COVID-19 Patients. (n.d.). Retrieved from https://www.gob.mx/sre/prensa/bbva-mexico-and-grupo-mexico-donate-ventilators-for-treatment-of-covid-19-patients

[9] México, G. (2020, June 16). Hemos entregado 10 mil kits de protección a #IMSSBienestar a 80 hospitales rurales del país para apoyar el combate a la pandemia del #Covid_19.#EnElNombreLlevamosElCompromiso https://twitter.com/GMexico_oficial/status/1272692948270899200?s=20

[10] BNamericas – Grupo México to speed up Oaxaca hospital works. (2020, March 26). Retrieved from https://www.bnamericas.com/en/news/grupo-mexico-to-speed-up-oaxaca-hospital-works

[11] Glencore. (2020, June 29). Through our Community Support Fund, we recently donated $550,000 to the Antofagasta Regional Hospital. The money will be used to provide medical devices and PPE to deal with the pandemic, and follows an earlier donation made to purchase mechanical ventilators for the hospital. Retrieved from https://twitter.com/Glencore/status/1277591000903561218?s=20

[12] We’re All in This Together. (n.d.). Retrieved from https://www.riotinto.com/news/covid-19/we-are-all-in-this-together

[13] B. (2020, February 06). Rio Tinto Supports China’s Fight Against Novel Coronavirus Outbreak. Retrieved from https://www.businesswire.com/news/home/20200205005929/en/Rio-Tinto-Supports-China%E2%80%99s-Fight-Coronavirus-Outbreak

[14] We’re All in This Together. (n.d.). Retrieved from https://www.riotinto.com/news/covid-19/we-are-all-in-this-together

The global spread of COVID-19 has left many individuals and communities filled with concern. The International Copper Association (ICA) stands with its members as they focus on the health, safety and well-being of their employees, their families and the communities in which they operate. Nothing is more important than human lives as we confront this crisis.

The word “crisis” comes from the Greek, “krisis,” meaning “time to act.” While the copper industry is taking extensive measures to protect our employees and the social environment in which we live and operate, we believe it is also the responsibility of the copper value chain to help local, regional and national governments access this essential material to meet the world’s needs.

Healthcare workers, first responders and other essential personnel confronting the coronavirus rely on copper for critical hospital equipment and for crucial functions, such as electronic devices, electricity delivery and storage, transportation, communication and safe drinking water. From mines and smelters/refiners through to fabricators, the copper industry is committed to providing the raw material and the finished products to assist those confronting this pandemic.

ICA and the copper industry thank the heroes working on the front line for their dedication—and our own global workforce for their agility and commitment—during the current challenges. Through resilience, collaboration and communication, we will overcome this adversity together.

For position statements from our industry partners, visit the following sites:

For the Copper Development Association, U.S.A. (CDA)

For the International Wrought Copper Council (IWCC)