Arizona is the nation’s king of copper as rising market prices for the mineral are encouraging mining companies to expand operations in the state, according to officials from the Arizona Department of Mines and Minerals.
“We’re producing more than 60 percent of the nation’s copper at this point,” said Madan Singh. “All the mines that can produce copper are mining for copper.”
A report by the U.S. Geological Survey also states that Arizona is ranked number one nationally in terms of the value of its non-fuel mineral production. (Non-fuel mineral production refers to minerals like copper and excludes energy sources like coal.)
Total value of non-fuel mineral production was $4.7 billion in 2005, up from $3.3 billion in production from the year prior.
Production value for copper produced in Arizona reached $2.6 billion in 2005, marking an 18 percent increase from the $2.13 billion produced in 2004. The 2005 copper value figures are 43 percent greater than the $1.49 billion produced in 2001, according to the study.
The price of copper has increased to almost $4 per pound, compared to a few years ago when copper was traded or sold at 70 cents per pound, said Mr. Singh.
The higher prices have triggered a rush to expand mining operations throughout the state, he said.
A recent magazine article written by Nyal Niemuth, an engineer with the department, reports that mining giant Phelps Dodge received conditional approval from its board to build two new open pit mines in Safford that would require $550 million in capital investment.
If the project gets necessary state operating permits, the move will make the Safford venture the first major U.S. copper mine to open in 30 years. At full capacity it is expected to produce 240 million pounds of the mineral a year.
The article and reports from the department also list, but are not limited to the following major recently announced ventures:
Resolution Copper announced it expects to spend $250 million for exploration and development on a large existing project site near Superior in Pinal County. Exploration drilling will follow the completion of two other mine shafts sometime in 2006.
Augusta Resource Corporation has agreed to buy the Rosemont copper deposit in the Santa Rita Mountains south of Tucson. Under the agreement, $20.8 million will be paid to Triangle Ventures, LLC. With its new investment, ARC is hoping it can recover 225 million tons of copper from the site over the next 17-22 years.