Saturday, 24 July 2021

Rio and BHP’s North American Oak Flat copper project

 

Thus the native hue of resolution

Is sicklied o’er with the pale cast of thought…

Hamlet Act 3, scene 1

 

This week the New Yorker reviews a book (link here) which explores various perspectives on a proposed copper mine being developed on Apache land in Arizona in the US by Resolution Copper, a joint venture between Rio Tinto (55%) and BHP (45%).


The project will be the largest copper mine in North America, and if it proceeds, it has the potential to meet 25% of US demand for copper over the life of the mine. Here and here are timelines that recounts the steps leading to the present state of play.

Native American  and environmental interests are mounting a campaign to prevent the mine from proceeding (link here and here).


There has been some media coverage in Australia (link here and  here).


The Rio web site has limited information on the project, though I did find a description of the project at this web page (link here), a hyper link to the Resolution Copper website (link here) plus a number of media releases including this January 2020 release (link here) and this 2019 media release (link here). The January media release (Resolution Copper project enters next phase of public consultation) notes inter alia:

The Resolution Copper project has entered the next phase of public consultation in the ongoing permitting process, led by the US Forest Service, with the release of its independent Final Environmental Impact Statement (EIS).

Decisions on whether to invest fully in developing the project, a proposed underground mine located in Arizona and one of the world’s most significant undeveloped copper deposits, remain subject to further permitting processes and a feasibility study that will be conducted over several years.

Resolution Copper is committed to continuing its engagement with Native American Tribes and working to seek consent before any decision on the development of the project, consistent with the International Council on Mining and Metals (ICMM) Statement on Indigenous Peoples and Mining…

…Extensive consultation with 11 Native American Tribes and local communities has guided significant changes to the project design and measures including:

The permanent protection of the culturally significant natural feature of Apache Leap

A Tribal Monitor program focused on cultural heritage protection

A partnership to protect and conserve culturally significant Emory Oak groves across Arizona.

Economic and community development agreements that can deliver significant long-term benefits for the Superior community.


The Resolution Copper website is worth visiting not least to view this statement issued in March 2021 (link here) which provides information related to the land swap involved in allowing the project to proceed on public lands. The details of the proposed land exchange can be viewed here, while details related to the block known as Apache Leap can be viewed here.


I decided to put up a post on the project as it appears to have received minimal attention in Australia, and had certainly passed me by. While there is clearly some way to go before the project goes ahead, there appears to be huge momentum behind it, not least derived from the $2bn in capital costs already expended by Resolution Copper, and the strong growth projections for demand for copper (link here).


Native American interests do not appear to have a legal right to veto the project, nor to negotiate financial benefits given that they do not own the land involved [I freely admit that I don’t have an adequate background to make this assertion with 100 percent confidence]. It is of interest however that the Juukun Gorge experience has been prominently reported in the US media coverage of Oak Flat and thus appears to have strengthened Native American leverage vis a vis Resolution Copper.

 

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