Rio Tinto Calls for Faster Permitting to Meet Copper Demand for Energy Transition

Rio Tinto has urged the incoming U.S. administration, under president-elect Donald Trump, to prioritize speeding up the permitting process for critical mining projects. Speaking at the Financial Times commodity summit in Singapore, Rio Tinto's Chief Commercial Officer Bold Baatar emphasized the importance of ensuring sufficient copper supply for the energy transition, specifically highlighting the stalled Resolution copper mine project in Arizona.

Developed in partnership with BHP Group, the Resolution mine could meet over one quarter of U.S. domestic copper needs. However, progress has been delayed due to a protracted permitting process and ongoing legal challenges. The mine faces significant opposition from Native American communities, particularly the San Carlos Apache, as its development would result in a massive crater affecting a religious site. The incoming administration has the authority to either approve the project or maintain the current freeze on its development. Baatar stated that Rio Tinto is committed to working with Native American groups to explore possible solutions.

Beyond Arizona, Rio Tinto's future growth focus includes its Rincon lithium project in Argentina and the acquisition of certain assets from Arcadium Lithium for $6.7 billion last month. According to Baatar, the company will prioritize integrating these ventures before considering larger mergers, like BHP's $49 billion attempt to acquire Anglo American earlier this year.

On the topic of iron ore, Baatar noted that China's steel demand is shifting towards higher-grade ore, which is less carbon-intensive in steel production. While demand from the residential sector is declining, it is being balanced by rising demand from sectors related to the energy transition, including electric vehicles and renewable energy infrastructure.