Wedoany.com Report-Oct. 16, BHP (ASX: BHP), recognized as the world's leading mining company, is evaluating the reactivation of four previously suspended copper operations in Arizona, a key hub for the U.S. copper sector.

Resolution copper project in Arizona.

Chief Executive Officer Mike Henry explained that recent regulatory adjustments under President Donald Trump have prompted BHP to intensify its exploration activities and assess inactive properties within the state. The proposed revival targets the Globe-Miami area, where the company also plans to re-treat waste materials from the discontinued sites. One prominent location is the Magma mine, which BHP obtained in its 1996 acquisition of Magma Copper. Following its closure, the surface area was repurposed as the foundation for the Resolution joint venture with Rio Tinto (ASX: RIO).

Henry attributed this renewed interest to a notable increase in determination within the U.S. to bolster supplies of essential minerals and lessen dependence on foreign sources. He told the Financial Times: “The more supportive attitude towards mining and the urgency behind getting mining up and going, is a very welcome shift.” Henry added: “The sector has never been more in the spotlight.”

The Resolution Copper initiative, jointly owned by BHP and Rio Tinto, stands as Arizona's premier copper endeavor. This $2 billion undertaking has faced delays exceeding two decades due to ongoing legal proceedings and pending authorizations. Upon activation, it could yield up to 1 billion pounds of copper annually, covering approximately 25% of the nation's requirements. Rio Tinto, holding a 55% interest, expresses optimism regarding approvals from the current administration to advance the development.

These discussions occur against a backdrop of escalating copper needs. According to Wood Mackenzie's latest Horizons report, global consumption is projected to climb 24% by 2035, reaching 42.7 million tonnes per year from the current 8.2 million tonnes baseline. The analysis identifies several influential elements that may heighten this expansion and introduce market fluctuations.

Data centers emerge as a particularly variable influence on copper requirements. In addition to artificial intelligence applications, the shift toward renewable energy sources is transforming usage trends. Regions like India and Southeast Asia are poised to drive substantial increases, with their accelerating industrial activities anticipated to contribute an extra 3.3 million tonnes annually by 2035.

Another factor involves evolving international strategies. Europe's commitment to elevate defense allocations to 3.5% of gross domestic product, prompted by Russia's actions in Ukraine, introduces a direct annual uplift of 25,000 to 40,000 tonnes over the coming decade. Yet, the wider effects will manifest through enhancements in infrastructure durability and upgrades.

Collectively, these dynamics could contribute an additional 3 million tonnes per year—equivalent to about 40% of overall growth—by 2035, as outlined by Wood Mackenzie. The report emphasizes the need for nearly 8 million tonnes of new mining output alongside 3.5 million tonnes from recycling to bridge the gap, highlighting challenges in exploration and approvals.

BHP's potential mine restarts align with these trends, supporting domestic production to meet surging demands in electrification, digital expansion, and industrial progress. By leveraging Arizona's established resources, the company aims to enhance supply chain resilience while adhering to environmental and community standards.

This strategic review underscores BHP's adaptability in a dynamic market, positioning it to capitalize on opportunities in critical materials essential for technological and sustainable advancements.