Rio Tinto Eyes Resolution Copper Mine Approval Amid Changing U.S. Political Landscape

The Resolution Copper project stands as a crucial component of the U.S.'s efforts to reduce dependence on copper imports, which are vital for infrastructure, technology, and defense applications.

London-based mining giant Rio Tinto is optimistic about securing long-awaited approval for its massive Resolution Copper project in Arizona. After a 12-year permitting struggle, the company anticipates that the new U.S. administration under Donald Trump will facilitate the regulatory process, aligning with broader domestic mining initiatives.

Rio Tinto's Chief Executive, Jakob Stausholm, expressed confidence in the project's prospects, highlighting substantial progress made over the years. "We have really good chances now to progress that project," Stausholm stated in an interview with the Financial Times, set to air on Wednesday.

The Resolution Copper mine, co-owned by Rio Tinto (55%) and Australian mining company BHP (45%), has the potential to become the largest copper mine in North America. Once operational, it could produce up to 1 billion pounds of copper annually, meeting approximately 25% of the United States' copper demand.

Regulatory Challenges and Opportunities

The project's progress has been hindered by complex regulatory hurdles, including a contentious land swap agreement, water usage concerns, and opposition from Indigenous communities. The San Carlos Apache tribe has led efforts to halt the project, citing the potential destruction of sacred sites and violations of religious freedoms. The U.S. Supreme Court is expected to rule soon on the case Apache Stronghold vs. United States, which could determine the mine's future.

Despite these challenges, Rio Tinto is optimistic that Trump's policies, which prioritize expedited regulatory approvals for investments exceeding $1 billion, will create favorable conditions for the project's advancement.

Political Implications

During Trump's previous term, his administration approved several high-profile mining projects, including the Resolution Copper land swap, just days before leaving office. Industry analysts believe that with Trump's return, regulatory agencies will adopt a more industry-friendly stance.

The appointment of Doug Burgum as the U.S. Secretary of the Interior further strengthens industry expectations. Burgum, known for his pro-energy policies during his tenure as North Dakota governor, is expected to support expedited mining approvals.

Industry Outlook

Alongside the Resolution Copper project, other mining ventures such as the Pebble Project in Alaska—owned by Toronto-based Northern Dynasty Minerals—are also poised for potential approvals. Industry executives anticipate a wave of investment into domestic mining operations under the new administration.