US Miners Eye Copper Comeback as Demand Rises

Growing Demand for Copper

The demand for copper in the United States is projected to double in the next decade. However, the nation currently lacks the production capacity needed to meet this skyrocketing demand without significant changes to existing mining regulations. In a bid to rejuvenate American mineral production, President Donald Trump recently signed an executive order aimed at increasing domestic mineral output.

A Step Towards Revitalization

“The United States possesses vast mineral resources that can create jobs, fuel prosperity, and significantly reduce our reliance on foreign nations,” the order states. It acknowledges that stringent federal regulations have hampered the nation’s mineral production capabilities, which were once robust. This executive order specifically targets priority projects focused on minerals including copper, uranium, potash, and gold—an encouraging sign for the U.S. copper industry, which finds it challenging to compete with nations that impose more lenient mining regulations.

Industry Response and Challenges

Clayton Walker, Chief Operating Officer of Copper at Rio Tinto, the world’s second-largest mining company, emphasizes the necessity of opening new mines in the United States. “We’ve got to create more mines. Open up some of those resources that we have right here in the U.S. and bring them online,” he stated. Walker argues that initiating copper production is essential for revitalizing U.S. manufacturing. “It all starts at the mines with that raw material,” he added.

Currently, Rio Tinto has been working for 17 years to get the Resolution Copper Mine in Arizona operational, which could potentially provide up to 20% of the nation’s copper demand. Unfortunately, the endeavor has faced numerous roadblocks such as land rights disputes and environmental concerns. Walker notes that the average time to permit a new mine in the U.S. stretches to 29 years, highlighting the need for faster processes: “We’ve got to figure out a way to bring those mines online a little faster.”

The Critical Mineral List

One potential solution for expediting the permitting process is adding copper to the list of critical minerals, defined by the Department of Energy as non-fuel minerals that are essential for energy technologies and are at high risk of supply chain disruption. Walker argues, “I think we need to make copper a critical mineral. Not having it on the list is hurting us and keeping that valuable metal from getting those resources that are needed.”

Meet the Copper Standards

The Kennecott Mine, located just west of Salt Lake City, stands as the largest open-pit mine globally, producing copper for over 120 years. It has historically provided substantial copper for significant events, including World War II, with 25% of the metal used by Allies sourced from Kennecott. However, despite this rich history, much of the mined copper in the U.S. needs to be shipped overseas for refining, contrasting sharply with other countries like China that boast over 50 copper smelters.

Nate Foster, Kennecott’s managing director, underlines the importance of the smelter as a unique asset, claiming it to be among the cleanest in the world. The U.S. currently exports over 400,000 tons of copper concentrate annually, which underscores the need to develop domestic refining capabilities.

Production Capacity and the Future

With operations running year-round, Kennecott utilizes oversized haulers to extract around 120,000 tons of copper ore yearly, accounting for 20% of the total copper produced in the U.S. After extraction, the ore is sent to the concentrator and smelter where it is processed into 99.99% pure copper plates—the highest quality available in the nation.

Tariff Considerations

In addition to increased mining output, President Trump has discussed a 25% tariff on imported copper that comprises 47% of U.S. consumption. This move could be beneficial for domestic mining operations, but it poses challenges for international companies like Rio Tinto. Walker stated, “We’re working hard with the administration to be part of that solution. If we can get [tariffs] structured the right way, I think it will benefit the domestic supply.”

Conclusion

The future of copper mining in the United States hinges on embracing regulatory changes that can streamline the permitting process and promote domestic production. With U.S. copper demand expected to soar, revitalizing the nation’s mining industry could play a crucial role in bolstering American manufacturing and reducing dependence on foreign minerals.