Trump Issues Directive to Strengthen the U.S. Copper Industry

President Donald Trump is making moves to support the U.S. mining industry, particularly focusing on copper as a vital part of his domestic minerals strategy. This interest comes in the context of his administration’s broader foreign policy, which includes discussions about acquiring Greenland for its mineral resources and seeking minerals from Ukraine in exchange for aid against Russia.

On a recent Tuesday, Trump signed an executive order aimed at enhancing the domestic copper industry. This order requires a review of the national security implications related to copper imports and considers imposing tariffs as a possible solution. It highlights that although the U.S. has plenty of copper reserves, its capacity for smelting and refining lags behind that of other countries.

This renewed focus on copper could significantly impact U.S. mining, raising concerns among environmental groups. For example, the Twin Metals project in Minnesota has drawn considerable attention and opposition due to its proximity to the Boundary Waters Canoe Area Wilderness, a protected natural area. Critics, such as Ingrid Lyons from the Save the Boundary Waters organization, argue that sacrificing natural treasures for copper is unnecessary, especially when the U.S. already has an abundance of copper resources.

Copper is essential in various modern technologies, much like lithium and cobalt. It’s a key component in rechargeable batteries and is also used in products like cell phones, LED lights, and household appliances. Debra Struhsacker, a mining industry consultant, stresses that copper is crucial for electricity needs, and its importance will remain as demand for electricity continues to grow.

In 2024, the U.S. is expected to produce around 1.1 million tons of copper, with a third of this being exported mostly in an unrefined state. On the other hand, the U.S. also imports about 810,000 tons of copper, nearly all in a refined state, with Chile being the primary source.

China is noted as the world’s leading copper refiner, holding more than half of the global smelting capacity. However, the U.S. primarily depends on Chile for refined copper imports, which underscores the importance of fostering a robust domestic copper industry to meet anticipated demand. Experts predict that global copper demand could potentially double by 2030 due to a surge in infrastructure projects and the push for electric vehicles.

The National Mining Association has welcomed Trump’s efforts to promote mining by signing executive orders aimed at streamlining regulations and encouraging mining processes. This association has listed top priorities, including projects like Twin Metals, which faces criticism due to potential environmental impacts. Other projects, like the proposed NewRange Copper Nickel mine and the Resolution Copper project, have also encountered delays and regulatory challenges.

There are concerns that some existing mines are not operating at their full potential, and it may be more beneficial for the environment and public health to boost production at these locations rather than creating new ones. Rob Peters, from Save the Scenic Santa Ritas, advocates for a strategic national approach that would prioritize both environmental protection and mining productivity.

In the past, Arizona was the leading state for copper production, but it has since fallen to fifth place. Industry insiders like Struhsacker believe that a lack of government coordination in the permitting process has hindered mining development. Trump’s recent executive orders, she notes, recognize the necessity of improving how permits are handled, which could lead to growth in the domestic copper sector.