Source : THE AGE NEWS
Rio Tinto and BHP’s controversial copper mine on US land sacred to the Apache Nations has been fast-tracked by President Donald Trump’s administration as it speeds up approvals for critical mineral projects in its trade war with China.
The US government awarded fast-track status to the long-delayed copper mining project in Arizona on Saturday which the Trump administration said would reduce the country’s reliance on mineral resources from foreign nations.
Both Rio Tinto and BHP see copper demand soaring as the world decarbonises.Credit: Munshi Ahmed
Critical minerals are central to the growing trade war between Washington and Beijing. Copper is key to the world’s electrification and energy transition.
China recently cracked down on the export of a wide range of critical minerals in response to Trump’s tariffs – minerals that are crucial to defence weapons and the green economy’s batteries and wind turbines.
It produces 90 per cent of the world’s permanent magnets and is the world’s only source of multiple refined rare earths and other strategic elements vital to making fighter planes, nuclear rods, munitions, smartphones and other consumer and industrial goods.
Owned by the world’s two biggest mining companies, Rio Tinto and BHP Group, the Resolution Copper mine, which has gained fast-track status, is forecast to supply about 25 per cent of America’s annual copper needs, boosting the bottom line of both mining giants. Rio Tinto holds a controlling 55 per cent interest, BHP owns the remainder.
Resolution is among a list of 10 projects to be granted “Fast-41” status under a law signed by former president Barack Obama to streamline approval processes.
Resolution Copper general manager Vicky Peacey said the project was vital to securing the energy future of the US.
President Donald Trump awarded fast-track status on the weekend to the long-delayed copper mining project.Credit: AP
“We are encouraged by the strong community and regional support for the project which has the potential to be one of America’s biggest copper mines, add $US1 billion [$1.6 billion] a year to Arizona’s economy, and create thousands of local jobs in a region where mining has played an important role for more than a century,” she said.
The underground mine has been marred by delays for years as it faced opposition from local indigenous groups, who say the project is located on sacred ground. Last week, a group led by the San Carlos Apache Tribe filed a petition at the US Court of Appeals challenging a ruling that could allow the mine’s development.
The coalition, Apache Stronghold, claim the parcel of federally owned land, known as Oak Flat, under which the copper deposits lie, is home to their deities, celebrated by generations.
“The feds are barrelling ahead to give Oak Flat to Resolution Copper, even as the Supreme Court considers whether to hear the case,” said Luke Goodrich from Becket lawyers who represent the Apache.
“This makes the stakes crystal clear: if the court doesn’t act now, Oak Flat could be transferred and destroyed before justice can be served.”
The Resolution Copper Mining area in Superior, Arizona.Credit: AP
Rio Tinto and BHP see copper demand soaring as the world decarbonises. Last year, BHP made a bid worth $US49 billion to acquire Anglo American, as it eyed the latter’s portfolio of copper mines. BHP is investing as much as $US13 billion just to maintain and boost current copper output from its existing assets in Chile and is seeking to expand production from Australian copper mines bought through its acquisition of OZ Minerals in 2023. The company is also actively looking to develop new sources.
So-called greenfield undeveloped mines built from scratch are costly and can take seven years on average to reach production. According to the joint venture’s website, full-scale development of Resolution Copper would take a decade. At full output, the project aims to mine about 18 billion kilograms of the red metal over its life.
Copper prices have endured a roller coaster over recent months amid speculation that the Trump administration may impose tariffs on imports of the metal, which drove a buying spree and subsequent price climb. Prices have since corrected.
Other projects granted fast-track status include the Stibnite Gold project, Warrior Met Coal Mines, Caldwell Canyon Mine and Michigan Potash project.
With Bloomberg
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
