FY22 Overview & Safety Program Update slide image

FY22 Overview & Safety Program Update

OUR COMMODITY DEMAND IN A LOW-CARBON WORLD Demand across our commodities will be well supported by a rapid transition to a low-carbon future 2050e average commodity demand in 1.5°C scenario versus base case37 100 150 (Index 2020 = 100) 200 Aluminium Alumina 250 300 1.5°C scenario anchored on rising electric vehicle (EV) penetration (from 4% to 100%) and proliferation of renewables generation (6x to 20TW) from 2020 to 2050e Aluminium benefits from higher intensity of use in EVs, substitution of plastics in packaging and increasing use in renewables Aluminium intensity in EVs is ~40% higher than internal combustion engine (ICE) vehicles (from 111kg/car in 2020 to 256kg/car in 2050e) due to light-weighting Copper is a key metal used in EVs, charging infrastructure and renewable energy Copper intensity in EVs is ~3x that of ICE vehicles (23kg/car) Copper intensity for offshore wind generation is ~12x that of coal and gas installations Zinc protects metals against corrosion Notes: a. b. Zinc Copper - Wind and solar energy could increase >10x by 2050e in 1.5°C scenario, equivalent to adding 3x the capacity of the USA each year SOUTH32 Additional demand in 1.5°C scenario Reduction in demand in 1.5°C scenario - Zinc intensity in offshore wind and solar installations is ~300x and 200x higher, respectively, than in autos (10kg/car) Zinc demand could double to 24Mt by 2040, akin to adding three Taylor sized projects (a) each year in an environment when supply is declining Lead impacted by reduced demand for lead batteries in motor cars as ICE fleet is phased out by 2050e, partly offset by higher demand for use in energy storage systems Manganese benefits from higher use in infrastructure to improve steel quality and also has the potential to displace cobalt in lithium-ion batteries with ~7x higher intensity in manganese-rich (b) cathode chemistries than nickel-based chemistries Base case Lead Manganese Based on Taylor Deposit pre-feasibility study with 130kt per annum steady state payable zinc production. Refer to important notices (slide 2) for additional disclosure. Manganese-rich chemistry is represented by NMX 370 with seven parts of manganese, compared to nickel-rich chemistry represented by NMC 811 with one part in manganese. SLIDE 27
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