Introduction to Arizona
Mining: a key pillar of Arizona’s economy
The southwestern US state of Arizona, best known for the Grand Canyon, has a long history of mineral exploration and mining. The earliest miners in what is now Arizona were Native Americans who mined surface outcrops of salt, clays, hematite, quartz, obsidian, stone, turquoise, and coal. This legacy was continued in the late 1600s, when Spanish explorers hunted for metallic deposits with a special interest in gold and silver.
Today, the legacy of mining is engraved into the landscape of the state, and it is a vital part of the culture, economy and environment. Copper mining has taken the center stage in the state for many years. Arizona produces approximately 71% of the nation’s red metal, with 825,000 tons (t) mined in 2021. The state is not only home to important copper producers including Freeport-McMoRan, KGHM, ASARCO, Capstone Copper and Hudbay Minerals, but it also hosts some exciting, world-class development projects. Among these, Resolution Copper, a joint venture owned by mining giants Rio Tinto (55%) and BHP (45%), could play a significant role in addressing the nation’s growing copper needs. “Our proposed underground mine is expected to become the largest copper mine in North America, capable of producing up to 25% of US copper demand each year,” revealed Andrew Lye, vice-president of Resolution Copper. As a reflection of the great importance of copper for the state, the red metal is showcased as one of the “Five Cs” upon which the Arizona economy was founded: cattle, cotton, citrus, climate, and copper, which are all represented on the Great Seal of the State of Arizona.
Arizona’s mining output is not limited to copper. The state is a major producer of other non-fuel minerals, including zinc, lead, manganese, gold, silver, lithium and uranium. In addition, Arizona is rich in rare-earth elements (REEs), which are an essential part of many high-tech devices. As the US tries to reduce its dependence on foreign sources, like China, much more attention is being placed on exploiting these minerals within the nation’s own borders.
“Arizona Mining Association’s goal is to keep the Arizona and the US very competitive. Arizona will be in the lead as the number one producer of nonfuel minerals.”
Steve Trussell, President, AMA
Arizona’s mining output is not limited to copper. The state is a major producer of other non-fuel minerals, including zinc, lead, manganese, gold, silver, lithium and uranium. In addition, Arizona is rich in rare-earth elements (REEs), which are an essential part of many high-tech devices. As the US tries to reduce its dependence on foreign sources, like China, much more attention is being placed on exploiting these minerals within the nation’s own borders.
The vast geological potential of the 48th state, combined with a favorable investment climate, has created a rich ecosystem of mining producers, developers, explorers and suppliers. This network has become a major growth engine of the state; according to data from the Arizona Mining Association (AMA), in 2021 the mining industry produced a direct output valued at US$8 billion and created 13,645 direct jobs. As mining firms purchased intermediate goods and services and workers spent their incomes, an additional US$6.2 billion of indirect Arizona output was created, along with another 33,617 jobs.
Centuries of process perfection, an abundance of experienced companies, research institutions, and sound environmental policies have positioned Arizona as a leader in environmental sustainability around the world. Companies in the Copper State are currently at the forefront of developing solutions to improve efficiencies in resource consumption, minimize land disturbance, reduce pollution, and safely close and reclaim mining lands.
A core focus of Arizona’s mining industry is currently water. The state regularly suffers periods of severe droughts or extreme precipitations. “The industry had to change the way it thinks about water, especially regarding storm water. Mines had to stop thinking of storm water as something to get rid of, and instead as something to capture, store, and integrate into their processes instead of focusing exclusively on fresh water,” explained Eric J. Mears, vice president of consulting company Haley & Aldrich.
One of the most outstanding cases where technology has allowed a mining operation to have minimal environmental impact is Florence Copper, a project under development owned by Taseko Mines. Florence Copper is not a mine in the traditional sense. No massive hole is dug in the ground, no waste piles are created, no smelters are used, and no blasting is done. Florence Copper recovers the mineral using advanced technology called in-situ copper recovery (ISCR) that has a small environmental footprint compared to conventional open-pit or underground mining operations: water consumption is 14 times lower, carbon emissions are six times lower, and energy consumption is three times lower.
Steve Trussell, president of the AMA, talked of the advances in water stewardship in the state: “In 2022, the legislature took on a huge investment in water augmentation and an authority was created to help address these issues in the state. The mining industry has been proactive and is on the forefront of water management, but it remains important for us to continue those efforts and support the state’s efforts to address this challenge.”
Arizona is also a leader in mine reclamation and today, mines plan, prepare, and provision for the reclamation of the project before even beginning permitting. Resolution Copper has taken this commitment a step further. The future underground mine is located on the site of the old Magma Copper mine in Arizona’s Copper Triangle, and Rio Tinto has invested US$75 million to reclaim the old Magma Copper mining tailings and the impact from the smelter before starting with the new mine.
While Arizona’s mining industry today is a very high-tech, efficient and environmentally-sound industry, many citizens in the state maintain a very negative perception of the sector. Sydney Hay, president of the AMIGOS association, explained the reason behind this: “The majority of mines, and all the copper mines in Arizona, are outside of Phoenix. Therefore, many Arizona citizens have never seen a copper mine.”
“The greatest challenge our industry currently faces is labor. Any mine in the country is struggling with attracting, training and retaining young people.”
Keaton Turner, Founder and CEO, Turner Mining
Mining contractor Turner Mining acknowledges that perception issues are drivers of the labor shortage among the industry, and in 2020 established the Turner Staffing Group to connect talent with opportunities in the mining industry. CEO and rounder Keaton Turner said: “The greatest challenge our industry currently faces is labor. The mining industry needs a facelift. Lots of major players did not use social media five years ago. Today, they showcase their operations on LinkedIn and Instagram, so that taboos have waned. A strong social media presence is key for the industry to show its modern side and help it tell its story better.”
Steve Trussell from the AMA highlighted the efforts that the industry must make to educate people regarding how vital materials are extracted today, and pointed out a key challenge related with the lack of understanding of how responsible modern mining has become: “There are companies that could hire upwards of 1,000 people for their operations in Arizona, but unfortunately it is difficult to find people who want to work in an industry they do not understand.”
Besides challenges such as a negative perception of the sector, labor shortages, and a lengthy permitting process, the future for Arizona’s mining industry is bright. Global economies are currently experiencing a confluence of demand drivers that threaten to outstrip supplies, potentially depriving the US of the minerals it requires to drive the economy towards its decarbonization goals. Beyond electrification, critical minerals are also needed to replace traditional infrastructure including roads, bridges, and public buildings. The stability of the jurisdiction and its remarkable mineral endowment put Arizona in a unique position to address the US’ increasing mineral needs, and beyond.