Rio Tinto expects Resolution Copper mine to open by mid-2030s
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Resolution Copper
Joint venture for a copper mine in Arizona, US
Resolution Copper (RCM) is a joint venture owned by Rio Tinto and BHP formed to develop and operate an underground copper mine near Superior, Arizona, US. The project targets a deep-seated porphyry copper deposit located under the now inactive Magma Mine. Rio Tinto has reported an inferred resource...
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Why It Matters
This announcement matters because Resolution Copper represents one of the largest undeveloped copper deposits in the world, with potential to supply approximately 25% of U.S. copper demand. It affects global copper markets, U.S. domestic manufacturing and renewable energy infrastructure development, and local communities in Arizona including the San Carlos Apache Tribe who oppose the project. The timeline confirmation signals Rio Tinto's commitment despite regulatory hurdles and could influence copper pricing forecasts and competing mining investments globally.
Context & Background
- The Resolution Copper project is a joint venture between Rio Tinto (55%) and BHP (45%) located near Superior, Arizona.
- The deposit was discovered in 1995 and contains an estimated 1.787 billion metric tons of ore with 1.5% copper content, making it one of the world's largest copper resources.
- The project has faced significant opposition from Native American tribes, particularly the San Carlos Apache, who consider the land sacred and have fought the mine through legal and legislative channels.
- In 2021, the U.S. Forest Service published a final environmental impact statement, but the project has been stalled by legal challenges and requires a land exchange approved by Congress.
- Global copper demand is projected to grow significantly due to electrification and renewable energy transitions, with potential supply deficits forecast by the late 2020s.
What Happens Next
Rio Tinto will continue working through remaining regulatory approvals and legal challenges, with potential court decisions expected in 2024-2025. The company will likely begin detailed engineering and procurement if legal hurdles are cleared, followed by construction estimated to take 5-7 years. Competing projects in Chile, Peru, and the Democratic Republic of Congo may accelerate development timelines to address projected copper shortages. The mid-2030s opening assumes successful resolution of Native American opposition and environmental concerns.
Frequently Asked Questions
The mine is controversial because it would destroy Oak Flat, a site sacred to the San Carlos Apache and other Native American tribes who have used it for ceremonies and gatherings for centuries. Environmental groups also oppose the project due to concerns about water usage in arid Arizona and potential contamination from the block cave mining method.
Once operational, Resolution could produce up to 40 billion pounds of copper over 40 years, significantly boosting North American production. This could help address projected copper shortages as demand grows for electric vehicles, renewable energy infrastructure, and electrical grid upgrades worldwide.
The project still needs resolution of multiple lawsuits challenging the environmental review process and land exchange. It also requires various state permits for water use and air quality, plus federal approvals for mine operations and waste management plans before construction can begin.
The mid-2030s opening puts Resolution on a similar timeline to other large greenfield projects like Quellaveco in Peru and Kamoa-Kakula expansions in the DRC. However, some analysts believe the timeline is optimistic given the complex legal and social challenges facing the project.
The project is expected to create approximately 1,400 direct mining jobs and 2,300 indirect jobs during operations, with significant tax revenue for local and state governments. However, opponents argue these economic benefits don't justify the cultural and environmental costs.