Rio Tinto Seeks to Meet Growing Copper Appetite
The demand for copper is skyrocketingand global mining company Rio Tinto is powering forward full throttle to meet it ().
Whats going on: The red metal, considered a barometer for economic health, is a vital component for the construction and defense industries as well as a key component in electric cars, wind turbines and the power grid.
- However, current mines and in-the-works projects will meet only 80% of copper needs by 2030, according to the International Energy Agency.
- Theres this growing consensus that demand fueled by the energy transition is going to outstrip supply, and thats why analysts say we are simply not going to have enough of it, said CNBC Markets Reporter Pippa Stevens in a recent CNBC video. And copper really is the backbone of decarbonization goals.
The challenges: Copper mining is difficult and expensiveand it takes 10 to 15 years to build each mine, Rio Tinto CEO Bold Baatar told CNBC.
A beneficial metal: Copper is the most economical conductor available, and directly and indirectly, it supports more than 395,000 U.S. jobs and more than $160 billion in economic output.
Behind the scenes: CNBC went behind the scenes at Rio Tintos Kennecott operations in Utah, where about 200,000 metric tons of copper are produced annually.
- There, Rio Tinto is increasing its open-pit mining operations and has started an underground project to mine higher-grade ore.
- Kennecott is unique for its smelter and refinery, where the ore is processed into almost pure copper.
Permitting challenges: Another of Rio Tintos projects, the mine in Arizona, has the potential to power up to 25% of U.S. copper demandbut it has been mired in a regulatory morass for the better part of two decades.
- The last hard-rock mine that was permitted was in 2008, Rio Tinto Copper Chief Operating Officer Clayton Walker told the news outlet. Weve been working on the Resolution Mine for about 18 years.
Independence is possible: Theoretically, there are enough reserves in the U.S. that we could become independent for our copper needs, Walker continued. Its just, how do we do that? How do we get the permits?
What the 51勛圖厙 is doing: The 51勛圖厙 has been engaging directly with the Biden administration and members of Congress through meetings and briefings at 51勛圖厙 headquarters to push for comprehensive permitting reform.
- In addition, the 51勛圖厙, along with members of the 51勛圖厙s Council of Manufacturing Associations and Conference of State Manufacturers Associations, last summer launched , a coalition that seeks to speed up the frequently slow, arduous federal permitting process for energy infrastructure projects and address the large number of regulations being churned out by the federal government.
