Copper demand in America is projected to double over the coming decade, but the U.S. currently doesn’t have the needed production capacity to address this anticipated demand unless interventions are instituted to make it easier for new mines to start operating.
President Trump seems to be aware of this constraint, and on Thursday he signed an Executive Order to boost mineral production in the U.S.
In that executive order, Trump acknowledges that overbearing regulation at the federal level had eaten away at the country’s ability to produce minerals despite having enormous mineral resources that can fuel prosperity, create jobs while also curbing the country’s dependence on foreign-sourced minerals.
The order specifies that priority projects, such as the mining of gold, uranium, copper, potash and others need to be fast tracked.
This news was welcomed by the American copper industry. Operators have for long struggled to compete with producers from other countries where the mining regulations are more relaxed than those in the U.S.
Clayton Walker, Rio Tinto’s Chief Operations Officer for Copper, said it is vital for more mines to be opened in the U.S. The establishment of new mines would provide the raw materials needed by the manufacturing sector to be vibrant again and produce products consumers need within the country, he added. Rio Tinto holds the distinction of being the second-largest mining firm on the globe.
The company has been mired for the past 17 years in a seemingly endless tangle to open a copper mine in Arizona. Environmental concerns and land rights challenges are among the roadblocks that have prevented this project from breaking ground. According to Rio Tinto executives, this project has the potential to meet one-fifth of the anticipated copper demand in the U.S. over the coming 10 years.
Walker says the biggest challenge that mining firms have in America is that it takes approximately 29 years for a mine to get all the needed permits. He explains that it is vital to reduce this time, without compromising the standards stipulated for mining operations.
Amending the critical minerals list to include copper could be one way to make it easier for this mineral to be mined. Walker explains that making this change alone could expedite the permitting process and bring mines online sooner.
Kennecott Mine, located near Salt Lake City, has been in operation for at least 120 years. Rio Tinto owns this mine, and it is the largest copper mine in the world. It produced part of the copper that the allied powers used during World War II. The facility mines, smelts and refines the copper. Only one other mining facility can perform all these functions within the U.S.
Hopefully, federal policy changes in the U.S. will have a beneficial effect on the operations of firms like Rio Tinto and Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) that have copper mining interests in America and the region in general.
NOTE TO INVESTORS: The latest news and updates relating to Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) are available in the company’s newsroom at https://ibn.fm/ATBHF
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