The US Bureau of Industry and Security recently introduced a 100% domestic sales requirement for lithium-ion battery black mass and tungsten scrap, signalling a strong push to retain strategic secondary resources domestically.
As previously reported, the temporary export controls are designed to strengthen the US’s domestic battery recycling and refining chain by limiting the flow of black mass.
Copper scrap was not included in the latest measure, although the US has already proposed encouraging 25% of high-quality copper scrap to remain in the domestic market, and has discussed a potential export licensing system, according to the Shanghai Metals Market (SMM).
SMM believes a black mass-style 100% domestic sales requirement for copper scrap is unlikely in the near term, as US secondary copper processing capacity is insufficient to absorb all domestic scrap supply.
More than 40% of US copper scrap is already consumed domestically. However, exports remain an important outlet.
“Restricting exports too quickly could lead to inventory accumulation, weaker scrap prices, and lower recycling initiatives,” SMM says.
According to the Recycled Materials Association, export markets remain an important outlet for materials that can’t be processed domestically, and excessive restrictions could potentially discourage investment in recycling infrastructure.
However, SMM reports that US domestic copper scrap consumption is likely to rise as new secondary smelting, recycled copper rod, and complex feedstock processing capacity comes online. This could reduce the amount of high-quality scrap available for export.
As such, the key issue for the global copper scrap market is that new supply cannot increase rapidly, while supplies of freely tradable, high-grade scrap are becoming scarcer.
Advancing Arizona’s copper industry
The tightening availability also puts greater focus on the other side of the copper supply equation: production.
If the US moves further towards retaining more of its secondary copper supply domestically, the country’s reliance on newly mined copper could become more important, particularly as demand from electrification, grid investment, and manufacturing continues to rise.
This creates a strategic opportunity for US-based junior explorers that are working to uncover and advance new domestic resources at a time when securing reliable sources of copper is becoming increasingly important.
Arizona is the top copper producer in the US, contributing nearly 70% of the country’s domestic output.
Mining giant BHP Group (ASX:BHP) owns 45% of the Resolution Copper Project with Rio Tinto (ASX:RIO), which owns the remaining 55%. The project sits about 97km east of Phoenix, Arizona.
Resolution has the potential to become one of the largest copper mines in the US. The deposit lies deep underground, about 1,524–2,134m below the surface. It is considered one of the largest undeveloped resources in the world, with studies estimating an average copper grade of 1.5%.
Over a 40-year mine life, the mine could produce as much as 18.1 million tonnes of copper and supply up to 25% of US copper demand.
On the exploration side, Kodiak Copper (TSX-V:KDK) owns the Mohave Project in Arizona, US. Mohave, covering 16.8km2, contains a sizeable ring or donut-type feature characteristic of copper porphyry deposits, with surveys indicating that it is part of an extensive sulphide-bearing hydrothermal system.
Recently, Kodiak Copper advanced a previously reported deal with Teck Resources (NYSE:TECK) and Kay Copper to create a new US-focused copper explorer, which is expected to list on the TSX Venture Exchange.
As part of the deal, the company intends to sell Mohave, while Teck will contribute its Copper Hill Project to a Kay Copper subsidiary.
Nevada’s copper explorers
Further up north in Nevada, there is an abundance of copper opportunities. Nevada’s copper industry produces tens of thousands of tonnes of copper annually, generating roughly 6% of total US copper production. In 2024, the state produced nearly 145 million pounds of copper, according to the Nevada Mining Association.
Nevada Sunrise Metals (TSX-V:NEV) owns the Coronado Copper Project in Nevada. The Coronado Project is located over an interpreted trend adjacent to the historical Big Mike Open-Pit Copper Mine. The company believes that other copper deposits may be present along trend from Big Mike.
Permits are in place, with drilling planned this year at Coronado, as previously reported.
“At Coronado, we want to find more copper,” CEO Warren Stanyer told this news service.
“We’re willing to take a crack at it. It’s going to be expensive, but with the right backers, we can do it.”
Further west lies Copper One Resources’ (CSE:CEXY) Majuba Hill district, which is a large contiguous land position located northeast of Reno, Nevada.
The Majuba Hill Project shows indications of a potentially large copper-silver-gold mineralised body, with many features in common with large porphyry copper, silver, and gold-type mineralisation.
Earlier this month, Copper One completed drill hole MHB-39, designed to test a newly discovered north-northwest-trending tourmaline breccia body at Majuba Hill.
As reported, CEO David Greenway says Majuba Hill has entered an ‘exciting’ new phase with drilling underway on the company’s initial ExploreTech AI-designed core hole.
“Recent underground mapping within the historic Middle Adit has strengthened our geological model by confirming breccia-hosted copper mineralisation and its relationship to surface structures,” Greenway says.
“By combining detailed field geology with AI-assisted exploration tools, we continue refining drill targets and improving the precision of our exploration program.
“These results provide additional confidence in our current drill program as we evaluate the extent and continuity of the mineralised breccia system.”
While copper scrap remains outside the latest export restrictions, further efforts to retain high-quality scrap domestically could tighten global availability and increase demand for newly mined supply.
This could strengthen the case for US-based copper explorers as the country looks to secure the resources needed to support its growing industrial and energy ambitions.
Write to Aaliyah Rogan at Mining.com.au
Images: Unsplash, Kodiak Copper, & Copper One Resources
