BHP eyes revival of long-closed copper mines in Arizona

 

BHP (ASX: BHP), the world’s largest miner, is considering reopening four long-closed copper mines in Arizona, the centre of the copper industry in the United States.

 

 

Chief executive officer Mike Henry said that policy changes introduced by president Donald Trump encouraged BHP to expand its exploration efforts and review dormant assets in the state.

 

The potential restart would focus on the Globe–Miami region, where BHP also intends to reprocess tailings from the shuttered operations. Among the sites is the Magma mine, acquired through BHP’s 1996 purchase of Magma Copper. The mine was later shut down, with its surface area converted into the base for the Resolution joint venture with Rio Tinto (ASX: RIO).

 

Henry credited the renewed push to what he described as a “breathtaking level of ambition and urgency” in the US drive to secure supplies of critical minerals and reduce its reliance on China.

 

“The more supportive attitude towards mining and the urgency behind getting mining up and going, is a very welcome shift,” Henry told the Financial Times. “The sector has never been more in the spotlight.”

 

The state’s most significant copper project remains Resolution Copper, held by BHP and Rio Tinto. The $2-billion development has been stalled for more than two decades while awaiting court rulings and final permits. Once operational, it could produce up to 1 billion pounds of copper a year, enough to meet roughly 25% of US demand.

 

Rio Tinto, which holds a 55% stake in Resolution, remains confident that Trump’s administration will grant the necessary approvals to move the project forward.

 

Demand to soar

Henry’s comments come as copper demand is forecast to surge 24% by 2035, rising 8.2 million tonnes per annum (Mtpa) to 42.7 Mtpa, according to Wood Mackenzie. The consultancy’s new Horizons report warns that several powerful disruptors could amplify both demand and price volatility beyond expectations.

 

Among these disruptors, data centres represent the most unpredictable variable in copper demand forecasting. Beyond AI-driven demand, the broader energy transition is fundamentally reshaping copper consumption patterns. India and Southeast Asia are emerging as key growth engines, with their rapid industrialization expected to add 3.3 Mtpa of demand by 2035.

 

A fourth disruptor lies in shifting geopolitical priorities. Europe’s decision to raise defence spending to 3.5% of gross domestic product (GDP) in response to Russia’s invasion of Ukraine adds a modest direct copper demand of 25,000 to 40,000 tonnes per year over the next decade. However, the broader impact will be felt through infrastructure resilience and modernization.

 

Together, these factors could add an extra 3 Mtpa, or about 40% of total copper demand growth, by 2035, Wood Mackenzie says. 

https://www.mining.com/bhp-eyes-revival-of-long-closed-copper-mines-in-arizona/