BHP Eyes Revival of Long-Closed Copper Mines in Arizona

BHP Considers Reopening Copper Mines in Arizona to Meet Growing Demand

BHP (ASX: BHP), the world’s largest mining company, is exploring the possibility of reopening four long-closed copper mines in Arizona. Arizona is a key hub for U.S. copper production. The mines under consideration are in the Globe-Miami region. BHP also plans to reprocess tailings from these old operations to boost copper supply without the need for new mining.

CEO Mike Henry credits changes in U.S. policy under President Donald Trump for encouraging BHP to review dormant assets in Arizona. Henry describes the U.S. mining climate as having “breathtaking ambition and urgency.” The policy shift reflects the government’s focus on securing critical minerals like copper and reducing reliance on China. Henry noted that the mining sector is now a central part of U.S. economic strategy.

The Resolution Copper Project and U.S. Copper Demand

The most significant project in Arizona for BHP is the Resolution Copper project. This $2-billion joint venture with Rio Tinto (ASX: RIO) has faced delays for over two decades. Once operational, it could produce up to 1 billion pounds of copper annually, covering roughly 25% of U.S. demand. However, the project still awaits final court rulings and permits.

Despite the delays, Rio Tinto is confident that the U.S. government will grant the necessary approvals. Copper demand in the U.S. is expected to rise by 24% by 2035, according to Wood Mackenzie. Key drivers include electrification and infrastructure investments.

Surging Copper Demand and Global Market Shifts

Global copper demand is set to rise sharply in the coming years. Wood Mackenzie predicts a 24% surge in demand by 2035, reaching 42.7 million tonnes per year (Mtpa). Factors driving this growth include the rise of AI-driven data centers and the global energy transition. As India and Southeast Asia industrialize, they will contribute significantly to this demand increase, adding 3.3 Mtpa of copper by 2035.

Geopolitical shifts also influence copper demand. Europe’s decision to boost defense spending in response to the Ukraine crisis will add 25,000 to 40,000 tonnes of copper demand annually over the next decade. These changes, along with infrastructure modernization, will increase demand and drive copper prices higher.

SuperMetalPrice Commentary:

BHP’s push to revive Arizona’s copper mines is a strategic response to the growing demand for copper in the U.S. and globally. The company’s focus on reprocessing tailings is a more sustainable approach to meeting supply needs. However, the copper market faces volatility driven by geopolitical factors, energy transitions, and emerging technologies. As global demand rises, BHP and other miners will play a crucial role in shaping the copper supply chain in the years ahead.