Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) has cleared a major legal hurdle at its Resolution copper project in Arizona, allowing the miner to pursue exploration at the deposit that is expected to be one of the largest sources of the metal in the US.
The group said it happened safe control A land swap with the U.S. Forest Service gave access to the 2,400 acres of land needed for the project, which is believed to contain more than 40 billion pounds of copper deposits. In return, Rio transferred 5,400 acres of land to the federal government.
This step has been taken after the decision of the US Appeals Court. reject attempts to block the transfer, while the U.S. Supreme Court declined to intervene, effectively ending the years-long legal dispute over the project.
Rio Tinto said it would now proceed with a US$500 million drilling program to assess parts of the deposit that were previously out of reach, a step necessary before construction timelines and production forecasts can be determined.
The Resolution project, 55 percent owned by Rio Tinto and BHP (ASX:BHP, NYSE:BHP, LSE:BHP), has been in development for more than a decade and has already attracted investment of more than US$2 billion.
It is expected to supply more than a quarter of America’s copper demand over its lifetime, serving as a strategic cornerstone as Washington looks to strengthen domestic supply chains for the critical mineral.
“We are committed to bringing in copper as quickly as possible,” said Katie Jackson, head of Rio’s copper business. told reuters. “This is something we want to do in the early to mid 2030s.”
The project has faced continued opposition from the San Carlos Apache, who consider the site, known as Oak Flat, sacred. Legal challenges have focused on religious rights and land use, but courts have repeatedly ruled in favor of allowing the land exchange to proceed.
Although legal clarity clears a major hurdle, the project still faces execution risks. Rio Tinto has yet to complete detailed studies on the newly accessible portion of the orebody, while questions remain over permitting timelines and processing economics.
The company has also indicated that US smelting capacity and pricing structures cannot fully support domestic processing, raising the possibility that some production may be exported as concentrate.
Don’t forget to follow us @INN_Resource For real-time updates!
Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
