Business model – robust yet flexible
Today, Aurubis has a broader position than ever before: we process metal concentrates, scrap metals, and metal-bearing recycling materials into metals of the highest purity and products with added value. Learn more about mine partners, market flows, and why recycling is becoming increasingly important as a driver of value.
To put it very simply, our business rests on three main pillars: the processing of raw materials from the mining industry, the processing of recycling materials from preprocessors and the electronics industry, and product business. The core of this unique positioning within the metal value chain is the use of different metallurgical flows, and each of these three pillars is influenced by different market cycles. This broad positioning ensures the sustainability of our results and the robustness of our business model.
The strength of our business model lies in the fact that the main features that drive earnings balance each other out in some cases, allowing us to handle the volatility of different market prices relatively well. And by developing our recycling business, we are working on the big societal challenges of our time.
Complexity, sustainability, and a focus on individual solutions
Aurubis sources metal concentrates from its global network of over 30 mining partners and a few traders. The company has decided that mining metal ores is not part of its strategy. What some would see as a disadvantage is something that we view as a strength. The independence and flexibility of this setup allow Aurubis to create an optimal input mix of standard and complex raw materials for its production facilities. We are focusing on our core expertise.
Thanks to its integrated smelter network, Aurubis can process complex concentrates and optimize its concentrate mixes. The advantages for both the mines and Aurubis are clear: we enable our mining partners to unlock the value of their complex metal concentrates, and Aurubis benefits from a higher margin for the solution they provide. This expertise makes Aurubis an in-demand partner for developing specific answers to the needs of the mining industry, for instance when it comes to concentrate quality. Furthermore, the topic of sustainability is gaining more traction. Not only consumers are becoming more aware of environmental and social issues. Our mining partners now also increasingly value a responsible and environmentally sound business approach. We at Aurubis pride ourselves on setting benchmarks in the industry!
Aurubis enters into long-term supply contracts with its mine partners to ensure the capacity utilization of its assets and provide planning security. This is also a way of committing to its partners: we are committed to our long-term partnerships and we favor mine partners that demonstrate the same dedication to sustainability in their downstream value chain as we do. Sustainability is not only a topic of environmental protection and social responsibility, it also means that we value partners who have a long-term view and are not only seeking to maximize short-term margins.