Copper is an essential resource. It is utilized in various industrial sectors, from cell phones to cars, yet the United States only produces roughly half of the copper it consumes. Under President Trump’s direction, extracting the nation’s mineral resources was given priority. Surprisingly, a new mining operation is set to begin in just three years, a considerable reduction compared to the typical lengthy, decades-long timeline.
Why? Because this new Ivanhoe Electric operation is working on private land.
The U.S. faces a copper challenge. The country has a high consumption rate, but there aren’t enough domestic mines to keep up with the demand. Ivanhoe Electric is on track to be the first U.S.-based company in over ten years to establish a copper mine within the country. This development is particularly timely as copper prices have reached unprecedented levels.
President Trump identified copper as a critical mineral. This decision is logical due to its diverse applications and the fact that domestic production falls short of meeting the nation’s consumption needs.
President Donald Trump issued an executive order in March hoping to add copper to the critical minerals list, which would expedite permitting and offer tax incentives to mining companies. And on July 8, the president announced a 50% tariff on copper imports starting Aug. 1.
The U.S. only produces about half the copper it uses, ranking fifth in production behind Chile, Democratic Republic of Congo, Peru and China. Part of the reason is that it takes an average of 29 years for copper mines to begin production, due to a lengthy permitting and approval process.
Having the operation on private land is an advantage, just as it is with gas and oil, as working on private land sidesteps a lot of the federal permitting processes, bidding on leases, and so forth.
“It’s like tomorrow in mining terms. It’s incredibly, incredibly fast and incredibly efficient,” said Taylor Melvin, president and CEO of the Tempe-based company. “One of our great advantages is being on private land here in Arizona. It allows us to have a much more streamlined permitting process, which allows us to have a more accelerated timetable to construction and production.”
But here’s the best part: While there are only two copper smelters in the United States, the ore produced in the Santa Cruz project can be extracted by leaching. The mine will produce pure metallic copper, ready for use.
