Clayton Walker, Chief Operating Officer of Rio Tinto's Copper Products Group, said on more copper mines and production needs in the US.
HERIMAN, Utah – Utah demand for copper is set to double over the next decade, but the country lacks production to meet its demand unless measures are taken to ease restrictions on new mines.
President Donald Trump hopes to change this after signing an executive order on Thursday to increase US mineral production.
“The United States has a vast amount of mineral resources that can create jobs, produce prosperity and significantly reduce dependence on foreign countries,” reads Order. “The United States was once the world's largest producer of profitable minerals, but controlling federal regulations has eroded our country's mineral production.”
The Bingham Canyon Mine is also known as the Kennecott Copper Mine in Utah. (Rio Tinto/Fox News)
This order will focus on prioritized projects for minerals such as copper, uranium, potassium and gold, among others. This is welcome news for the copper industry in the country, struggling to compete with more relaxed mining regulations in other countries.
ETFs that play gold, silver, copper, everything in between
“We need to create more mines. Open some of these resources in the US and bring them online,” says Clayton Walker, copper COO from Rio Tinto, the world's second largest mining company. “Then people who actually incorporate that raw material and turn it into something that consumers can enjoy, that feeds production, so I feel that it's an important path to making production again here in America.
Rio Tinto has been opening a new copper mine in Arizona for 17 years, and is known as a copper mine with resolution. Officials say the mines can provide 20% of the demand. However, we have encountered obstacles over the years, including land rights issues and environmental concerns.
“It takes about 29 years to allow mines as we are currently challenging the US. And I'm all about doing the right thing. And I think we have some of the highest standards and highest standards in the world. “But we need to figure out how to bring those mines online a little faster than, say, 29.”
The Bingham Canyon Mine is also known as the Kennecott Copper Mine in Utah. (Rio Tinto/Fox News)
One way to speed up the permitting process: You can add copper to your important mineral list.
Important minerals are defined by the Department of Energy as “non-fuel minerals, elements, materials or materials as determined by the Energy Secretary: (i) the risk of supply chain destruction;
Congolese mineral offers raises the issue of ownership amid the bloody civil war, China's main presence
Adding copper to the list eases restrictions on copper production.
Copper cable wrapping is monitored by factory employees. ((Photo by Denis Charlet via Getty Images/AFP)/Getty Images)
“I think we need to make copper as an important mineral. Not having it on the list hurts us and prevents that precious metal from getting the resources we need,” Walker added. “I think we have some great standards. We can do better here than anywhere else. We need to be a little faster.”
Just west of Salt Lake City, the Kennecott Mine in Rio Tinto is the world's largest open-pit mine, 2.5 miles wide and about 4,000 feet deep. Over 120 years ago, the mines produced more copper than any other copper on the planet.
The Bingham Canyon Mine is also known as the Kennecott Copper Mine in Utah. (Photo: Deagostini / Getty Images / Getty Images)
“Kennecott's history keeps me here. I'm absolutely hooked on it. 25% of the metals that allies used in World War II came from here,” said Nate Foster, Kennecott's managing director. “Allies will not win World War II without Kennecott.”
Kennecott also has the distinction between being one of two locations in the country, allowing you to mine, refine and refine your own copper. In comparison, China has over 50 copper smelters. This means that much of the copper mined in the US will be shipped to other countries and refined.
“We're now [the U.S.] In reality, it exports more than 400,000 tons of concentrate per year. This will be handled by other countries and come back to us in a different way,” Walker says.
According to the CEO, we say that important minerals “have to look at them internally as much as they are externally.”
Kennecott Smelter is an engineering wonder, at 1,215 feet, the fourth chimney in the world.
“The fact that we have one of the cleanest smelters in the world makes it really very unique,” Foster added. “And I think we really think we have very strategic assets with smelters and refineries… we can help us invest in America.”
Kennecott operates 24 hours a day, 365 days. The 97 oversized carriers, capable of carrying 360 tons of copper in one package, extract around 120,000 tons of copper ore per year, day and night, accounting for 20% of the domestically produced copper.
Kennecott Copper Mine outside Salt Lake City, Utah. (Planet One Images/Universal Images group via Getty Images/Getty Images)
All operations are carried out in-house. After being mined and crushed, the ore heads towards the concentrate via a five-mile-long conveyor belt. It then turns into sludge and is piped into a smelter. The smelter will result in a 700 pound copper slab. After spending time in the electrolyte bath, it becomes two 300 pound copper plates. 99.99% pure copper.
Click here to get your Fox business on the go
“It's the highest quality you'll find anywhere in the US,” Foster said. “and Looking at the amount of emissions we don't have here in the US, other smelters around the world don't need to comply with those same standards as we produce some of the highest environmental standards. So we take pride in it. ”
Trump is threatening to add a 25% tariff on imported copper. This accounts for 47% of the copper used in the US, which could be a boon for US-based copper mines. This is a complex problem for companies like Rio Tinto, which operate mines around the world.
“We work hard with the administration to become part of that solution. And if you see how tariffs work, that's all about how you set up and structure them,” Walker said.
