Clayton Walker, chief working officer for Rio Tinto’s copper product group, on the necessity for extra copper mines and manufacturing within the U.S.
Herriman, UTAH – The demand for copper within the U.S. is about to double within the subsequent 10 years – however the nation lacks the manufacturing to satisfy that demand except steps are taken to ease restrictions on new mines.
President Donald Trump hopes to alter this after signing an govt order on Thursday to extend American mineral manufacturing.
“The United States possesses vast mineral resources that can create jobs, fuel prosperity, and significantly reduce our reliance on foreign nations,” the order reads. “The United States was once the world’s largest producer of lucrative minerals, but overbearing Federal regulation has eroded our Nation’s mineral production.”
AN ETF TO PLAY GOLD, SILVER, COPPER AND EVERYTHING IN BETWEEN
“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,” Clayton Walker, COO of Copper at Rio Tinto, the second-largest mining firm on the planet. “That then feeds the manufacturing, the folks that actually take that raw material and turn it into something usable the consumers can enjoy. So I feel like it’s just a critical path for making manufacturing again here in the U.S. It all starts at the mines with that raw material.”
Rio Tinto has been making an attempt to open a brand new copper mine in Arizona for 17 years, dubbed the Decision Copper mine. Officers say the mine might present as a lot as 20% of the demand. However it’s run into roadblocks over time, together with land rights points and environmental considerations.
“The challenge we have right now in the U.S., it takes about 29 years to get a mine permitted. And so I’m all for doing the right thing. And I think we have some of the best standards and highest standards in the world, and I’m all for that,” mentioned Walker. “But we’ve got to figure out a way to bring those mines online a little faster than, say, 29 years.”
A method the allow course of may very well be expedited: including copper to the essential minerals record.
A essential mineral is outlined by the Division of Vitality as, “Any non-fuel mineral, element, substance, or material that the Secretary of Energy determines: (i) has a high risk of supply chain disruption; and (ii) serves an essential function in one or more energy technologies, including technologies that produce, transmit, store, and conserve energy.”
CONGO’S MINERAL OFFER TO US RAISES QUESTIONS OF OWNERSHIP AMID BLOODY CIVIL WAR, MAJOR CHINA PRESENCE
Including copper to the record would ease restrictions on the manufacturing of copper, which means Rio Tinto and different firms might open new copper mines faster within the U.S.
Copper cable wrapping is monitored by a manufacturing unit worker. ((Photograph by DENIS CHARLET/AFP by way of Getty Photos) / Getty Photos)
“I think we need to make copper as a critical mineral. Not having it on the list is hurting us and keeping that valuable metal from getting those resources that are needed,” added Walker. “I think we got some great standards. We can do it better here than anywhere. We just need to do it a little faster.”
Rio Tinto’s Kennecott mine, simply west of Salt Lake Metropolis, is the biggest open-pit mine on the planet, spanning 2.5 miles throughout and about 4,000 ft deep. At greater than 120 years previous, the mine has produced extra copper than some other on the planet.
Bingham Canyon Mine, also referred to as the Kennecott Copper Mine, in Utah. (Photograph by DeAgostini/Getty Photos / Getty Photos)
“The history of Kennecott is what keeps me here. I just am absolutely enamored with it. Twenty-five percent of the metal that the Allies used in World War II came from here,” Nate Foster, Kennecott’s managing director, mentioned. “The Allies don’t win World War II without Kennecott.”
Kennecott additionally has the excellence of being one among solely two places within the nation that may mine, smelt and refine their very own copper. As compared, China has over 50 copper smelters. Which means a lot of the copper that’s mined within the U.S. is shipped to different international locations to be refined.
“We’re right now [the U.S.] is actually exporting over 400,000 tons of concentrate a year, which is going to other countries to be processed and then shipped back to us in another form,” says Walker.
US NEEDS TO ‘LOOK INTERNALLY AS MUCH AS WE’RE LOOKING EXTERNALLY’ FOR CRITICAL MINERALS, CEO SAYS
The Kennecott smelter is an engineering marvel – at 1,215 ft, it’s the fourth-tallest chimney on the planet.
“The fact that we have one of the cleanest smelters in the entire world makes it actually pretty unique,” added Foster. “And where we really think we’re well positioned with a very strategic asset with our smelter and the refinery to be able to help continue to… invest in America.”
Kennecott is a 365-day, 24-hours-a-day operation. Ninety-seven outsized haulers, able to carrying 360 tons in a single load, work day and night time to extract round 120,000 tons of copper ore per 12 months, which accounts for 20% of the copper produced within the nation.
The Kennecott Copper Mine outdoors Salt Lake Metropolis, Utah. (Planet One Photos/Common Photos Group by way of Getty Photos / Getty Photos)
The operation is all completed in-house. After being mined and crushed, the ore makes its approach by way of a 5-mile-long conveyor belt to the concentrator. It’s then became a sludge and piped to the smelter. From the smelter it turns into a 700-pound copper slab. After spending time in an electrolyte tub, it turns into two 300-pound copper plates – 99.99% pure copper.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“That is the highest quality that you’re going to find anywhere in the U.S.,” mentioned Foster. “And when you look at the amount of emissions that we don’t have here in the U.S., as we produce to some of the highest environmental standards, other smelters across the world don’t have to comply with those same standards. So we pride ourselves on that.”
Trump has threatened so as to add a 25% tariff on imported copper, which accounts for 47% of the copper used within the U.S. Whereas this may very well be a boon for U.S.-based copper mines, it’s an advanced problem for firms like Rio Tinto, which operates mines everywhere in the world.
“We’re working hard with the administration to be part of that solution. And if you look at the way tariffs work, it’s all in how you set them up and structure them,” mentioned Walker. “And if we can get those structured the right way, I think it will benefit the domestic supply.”
