BHP is reportedly considering reopening four long-dormant copper mines in Arizona, a key area of the US copper industry.
BHP chief executive Mike Henry highlighted the “breathtaking” shift in US Government policy, which has significantly boosted the country’s extraction industry, reported the Financial Times (FT).
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The initiatives, set by President Donald Trump, have led BHP to increase exploration efforts in the US, particularly in Arizona.
Henry noted its ambitious approach in the US regarding critical minerals, aligning with Trump’s strategy to secure resources and compete with China.
“The more supportive attitude towards mining, and the urgency behind getting mining up and going, is a very welcome shift,” Henry stated in an interview with the FT.
Currently, BHP is exploring the possibility of developing mines in Arizona’s Globe-Miami area.
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By GlobalDataThis region is home to four inactive mines previously operated by BHP, which were shut down several decades ago.
Additionally, BHP is looking into the potential reprocessing of tailings waste from these sites.
Higher copper prices and new US policies such as tariffs and expedited mining permits have prompted a review of these assets by the company.
The company has also initiated fresh exploratory drilling in the area.
BHP, with a market capitalisation of $140bn, primarily gets its revenue from iron ore but is strategically shifting towards copper due to rising demand.
The Resolution Copper project in Arizona, a joint venture with Rio Tinto, was discussed during Henry’s meeting with Trump in August.
This project awaits court decisions before development can proceed.
US tariffs on commodities have made domestic mining more economically viable, although Henry suggests that tariffs approved through legislative processes rather than executive order would provide more certainty for long-term projects.
In September, BHP reached a settlement agreement to resolve the Australian Samarco shareholder class action, which is awaiting approval from the Federal Court of Australia.
The lawsuit was filed on behalf of investors who bought BHP shares prior to the collapse of the Fundão tailings dam in 2015.
