Introduction to the Western USA
Tier-one jurisdictions
Few countries contain vast land extensions rich in minerals comparable to the US. From the discovery of gold in California’s Sierra Nevada mountains during the gold rush, to the emergence of copper mines in the deserts of Arizona, and the wild and untapped Alaskan wilderness, the Western US hosted some of the most prolific mining operations in history. Mining for silver and gold is embedded in the early history of many Western states. However, in today’s world order, mining has gone way beyond precious metals and is playing a pivotal role in geopolitics by extracting critical minerals and rare earth elements (REE).
Moreover, the Western United States stands out as the primary hub for extracting metals and metallic minerals, including Nevada, Arizona, Wyoming, Idaho, Utah, Alaska, Colorado, California, Montana, New Mexico, Washington, and Oregon. According to the data from United States Geological Survey (USGS), the Western US, encompassing the states of Washington, Oregon, California, Nevada, Idaho, Montana, Utah, Arizona, Wyoming, Colorado, New Mexico and Alaska, emerged as the leading region in metal and metallic mineral production, accounting for over US$27 billion of production, or 77.8% of the total US production. Nonfuel mineral production in the US reached US$98.2 billion in 2022, an increase of 4% from US$94.6 billion in 2021.
The top 10 producing states and their respective production values were: Arizona (US$10.1 billion), Nevada (US$8.9 billion), Texas (US$8.0 billion), California (US$5.6 billion), Minnesota (US$4.8 billion), Alaska, (US$4.5 billion), Utah (US$3.6 billion), Michigan (US$3.4 billion), Missouri (US$3.2 billion), and Florida (US$2.8 billion). Conversely, the estimated value of American metal mine production in 2022 amounted to US$34.7 billion, reflecting a 6% decrease compared to 2021.
While some Western states like Washington, Oregon, Idaho, Montana, Wyoming, and New Mexico did not secure positions in the top-10 list of producing states, others such as Arizona, Nevada, and California compensated for this, effectively balancing the overall production compared to the other regions. Finally, in terms of commodity, the principal contributors to the total value of metal mine production were copper, gold, iron ore, zinc and molybdenum, accounting for 33%, 28%, 15%, 9% and 5%, respectively.
Despite its importance, the mining industry in the Western US is confronting significant pressure. On a broad scale, miners are compelled to function within rigorous environmental standards, requiring a continuous demonstration of their commitment to investing in and adopting new technologies to enhance sustainability. At the same time, at the exploration stage, miners are grappling with a cumbersome permitting process that acts as a barrier, impeding the development of the next generation of mines crucial for the ongoing energy transition.
The Paris Agreement of 2015, which set ambitious goals to reduce emissions by 45% by 2030 and reach net zero by 2050, is an opportunity for many critical minerals-producing states like Arizona, the copper state, or Nevada, where lithium is abundant, to help achieve these targets, but the energy transition has taken on a geopolitical dimension, especially amid escalating political tensions involving the West, China and Russia. Certain minerals, vital for achieving decarbonization goals, have become a national priority for Washington, driven by economic considerations and strategic defense imperatives. Recent events have underscored the vulnerability of the US supply chain, revealing potential disruptions that could have far-reaching consequences. Like a domino effect, the scarcity of a particular mineral can trigger negative impacts in unexpected sectors of the economy.
In this context, the US has forged alliances with its allies and developed new policies. Where jurisdictions like Ontario or Québec have been working in the last years on a critical minerals strategy, the Western US applauded and welcomed the decision of the US Department of Energy (DOE) to include copper for the first time in its Critical Materials Assessment, published in July 2023.
Asserting that the US can establish a complete domestic supply chain of certain minerals is bold, especially under current conditions. While political interest might be there, the reality is that there is a lot of work to do in terms of permitting and educating society. As long as these factors do not align, a fully integrated US domestic supply chain may remain only an American dream.
Nevada
In 2022, gold production from mines in Nevada totaled slightly over 4.04 million ounces (oz), a decrease from the 4.47 million oz recorded in 2021. Silver production amounted to 5.47 million oz, down from 6.22 million oz in 2021, as the Nevada Division of Minerals reported. Copper production in 2022 amounted to 141.77 million pounds (lb), a decrease from the 163.73 million lb reported in 2021. On the other hand, molybdenum production experienced an increase, reaching 275,620 lb compared to 240,000 lb the previous year. Being the primary hub for gold and silver production in the Western US, and home to companies like Nevada Gold Mines, Coeur Mining, Jerrit Canyon-First Majestic Silver, and i-80 Gold, Nevada's economy has experienced a decline. Despite this downturn, the state still boasts a noteworthy economic output and GDP contribution, amounting to an impressive US$12.6 billion and US$4.9 billion, respectively.
Maintaining an unbiased perspective when evaluating Nevada as a mining jurisdiction can be challenging. It is difficult not only because the Fraser Institute consistently ranks Nevada as the top global mining jurisdiction for investment (including for 2022), but also due to the surge in activity across various minerals and the entire value chain, establishing Nevada as a vertically integrated state.
All that glitters in Nevada is indeed not gold. The state is home to the only lithium-producing mine in the US; the Silver Peak operation from Albemarle. The surge in activity within the lithium exploration sector has positioned the Tonopah-Clayton Valley area, with its clay-rich deposits, as a potential global lithium hub. ABTC, having received funds from the DOE, is establishing a cutting-edge facility in Tonopah to manufacture battery-grade lithium hydroxide from claystone deposits together with a recycling plant. Similarly, Ioneer has secured DOE funds for its chemical processing facility, advancing its Rhyolite Ridge lithium-boron project. Furthermore, in Northern Nevada the construction of Lithium America's Thacker Pass is a notable example of the state's commitment to the "white gold" revolution.
"There is abundant investment flowing in from the Inflation Reduction Act and the Bipartisan Infrastructure Act. Mining, auto, battery, and technology companies are coming together in the state to develop the homeland lithium supply chain. In the not-so-distant future, we will likely be referring to Nevada as the "Lithium State," stated Pan American Energy's CEO and president, Jason Latkowcer.
Indeed, Nevada is also home to Tesla's Gigafactory, and more recently, Biden named the "Nevada Lithium Batteries and Other EV Material Loop", led by the University of Nevada, Reno, one of 31 federally recognized regional tech hubs across the nation. This Tech Hub aims to position Nevada as a robust node in a critical supply chain, enhancing the resilience and competitiveness of the battery economy and accelerating the energy transition. In addition to DOE funding, several off-take agreements are unfolding in the state. For example, Lithium Americas has signed an off-take agreement with General Motors. Ioneer has partnered with Ford Motors, Prime Planet Energy Solutions (a JV between Toyota Motor Corporation and Panasonic Corporation), EcoPro, and, more recently, DragonFly. These partnerships have broken the silos that characterized the industry until a few years ago and will foster synergies across different players in the supply chain, reshaping it into a more vertically integrated structure in Nevada, paving the way for earlier-stage projects.
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“Nevada is a noteworthy example of successfully balancing economic productivity with environmental sensitivity. We are eager to showcase to other jurisdictions that finding this equilibrium is achievable, benefiting local communities and contributing positively to the states and the entire country.”
Dana Bennett, Former Interim President, Nevada Mining Association (NVMA)
Arizona
If in Nevada what glitters is either gold, silver or lithium, in Arizona, the warm, red desert landscape resembles the richness of copper. Arizona, the copper state, —where major copper mines belong to big players such as Freeport-McMoRan, Asarco, Carlota Copper (a subsidiary of KGHM International), Taseko Mines’ Florence Copper asset, and Excelsior Mining—, maintained its position as the leading copper-producing state, accounting for approximately 70% of domestic output.
In the past year, Arizona has maintained its position in the top 10 most attractive jurisdictions for investment, according to the Fraser Institute. However, there has been a slight decrease of 2 points in the Investment Attractiveness Index, moving from the 5th spot out of 84 to the 7th out of 62. Despite the decline, all producing mines in the copper state make a significant contribution to the state’s economy: “Arizona mining production was over US$10 billion and ranked 1st in the nation in 2021 and 2022. The hard rock mining sector is a US$14.2 billion industry, and combined with the aggregate industry, it is US$20 billion impact on the state’s economy,” said Steve Trussell, president of the Arizona Mining Association.
Many of these producing mines and several other exploration-development projects are located at the state’s heart, in what is known as the ‘Copper Triangle´: “To put this in perspective, there are only three copper smelters in the US, and two are in the Copper Triangle. To date, the triangle has produced approximately 37 billion lb of copper, and there are still believed to be over 95 billion lb of known reserves and resources,” stated Dan Weir, co-founder and CEO of Copper Bullet Mines.
If Arizona is rich in copper, it is poor in water. As one of the driest states in the US, society closely scrutinizes water usage by mining operations. This has encouraged companies to invest in research and development, emphasizing environmental stewardship to showcase that copper extraction can be more sustainable. Thus, Arizona has emerged as a focal point for companies delving into in situ recovery (ISR), a method for extracting copper with minimal disruption to the surface environment. By learning from the uranium segment, companies like Excelsior Mining and Taseko’s Florence Copper are adopting this eco-friendly approach, opening the door for earlier-stage companies like Copper Fox to follow.
Arizona’s abundant copper resources continue to attract major players. For instance, Arizona Sonoran is advancing its brownfield Cactus project, incorporating the Parks/Salyer deposit under a new PFS. The state’s copper richness has motivated the technology division of Rio Tinto’s Nuton to explore innovative leaching methods to unlock the copper potential.
On the other hand, despite navigating the intricacies of the global mining permitting process, the Resolution Copper project, a joint venture between Rio Tinto and BHP, stands as a clear example of copper’s significance for Arizona’s future if the US would work on streamlining the permitting process. With a projected LOM spanning 60 years, the project is anticipated to generate around 3,700 direct and indirect jobs, potentially fulfilling up to 25% of the current US copper demand.
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“Arizona has a favorable economic, political, and regulatory climate. People know we are the ´copper state´ and generally understand mining’s importance and the need for mined materials. Arizona ranks first in mineral potential in the US and has a policy perception ranking that is also favorable to mining.”
Steve Trussell, Executive Director, Arizona Mining Association
Alaska
Alaska, renowned as the second-largest gold producer in the United States and the top silver producer in 2022, surpassing Nevada, is also considered one of the best mining jurisdictions. Despite a slight drop of 5 points, ranking 11th in the Fraser Institute's survey, mining activity in this geologically rich state remains robust. Key mines in Alaska include Teck's Red Dog mine in the Northwest Arctic region, extracting zinc, lead and silver; Hecla's Greens Creek and Coeur Mining's Kensington mine in the Southeast region, yielding silver, zinc, gold and lead. Northern Star's Pogo and Kinross' Fort Knox mine primarily focus on gold in the Interior region. Finally, Alaska is home to the Usibelli coal mine, the only active coal mine in the state. More recently, the Manh Choh mine, a JV between Contango Ore and Kinross, was brought online to produce gold leveraging Fort Knox's mill.
According to the figures from the Alaska Miners Association, mining plays a pivotal role in Alaska's economy, generating 11,400 jobs and contributing US$1 billion in wages statewide. In terms of exploration, the state has seen US$645 million spent in 2022, and noteworthy projects include the Whistler gold-copper project and the Donlin project for precious metals, and for critical minerals and REE the Bokan REE project, Graphite Creek, Niblack, Palmer, Upper Kobuk and the Pebble project.
Explorers are drawn to Alaska for its vast, wild expanses that present an untapped jurisdiction; juniors navigate the potential for discovering world-class deposits while grappling with infrastructure limitations. "Exploration and infrastructure are related, and exploration companies are looking for terrains that can deliver geologically but also balance your understanding of the geologic potential with the relative opportunity that under-exploration and remote areas offer," explained Tim Smith, president and CEO of U.S GoldMining, which owns the Whistler gold-copper project.
Alaska includes part of the `Golden Triangle´, a renowned region encompassing significant gold, silver and copper deposits that stretches to Stikinia, British Columbia, Canada. Yet, the US side is often neglected, missing out on potential synergies that could be leveraged with its neighbor, Canada. "Despite witnessing numerous billion-dollar buyouts and ongoing mine developments in the Golden Triangle, the US side seems overlooked, especially on the Alaska side. Geologically, such boundaries do not abruptly cease, prompting curiosity and further exploration," said Morgan Lekstrom, CEO of Blackwolf Copper and Gold.
Wyoming, and Utah, and Colorado, the state agreements and a hub for critical minerals
While there is no historical evidence, it is believed that Abraham Lincoln once stated "Utah will yet become the Treasure House of the nation." These words ring true, not only for Utah but also for Wyoming and Colorado. These three geologically diverse states share common themes in their mineral wealth.
Regarding the Fraser Institute figures, Wyoming was not listed on the index. Utah dropped 11th to 17th in the investment attractiveness index but rose to 4th in policy rankings. The most notable change was for Colorado, which significantly improved its policy standing, moving from 37th to 9th place with a 17-point increase in its policy score. This improvement translated into a higher overall ranking, elevating Colorado from 20th in 2021 to 5th in the 2022 Investment Attractiveness Index.
Because they are `agreement states´, they have entered into agreements with the US Nuclear Regulatory Commission (NRC) to regulate certain radioactive materials within their borders, including uranium mining and milling. "New facilities only need to go through state-level permitting for radiological concerns, eliminating the need for NRC involvement. This change has significantly reduced the time required for permitting," explained John Cash, president and CEO of Ur-energy.
Utah's Henry Mountains and La Sal Complex, Wyoming's Laramie Mountains, and Colorado's Uravan Mineral Belt—all in the Colorado Plateau—showcase the potential that these states will play in the green transition.
Colorado is also renowned for the Colorado Mineral Belt, known for its rich deposits of gold, silver and copper. Meanwhile, Wyoming is emerging as a critical player in the Rare Earth Elements (REE) segment and features rich REE locations such as Bear Mountain in the north and the Laramie Mountains in the south, housing the flagship projects from American Rare Earths and Rare Element Resources. These companies are advancing their respective projects and forging partnerships with various entities ranging from governmental agencies to universities. In their pursuit of extracting REEs, Wyoming is giving birth to an innovative approach that diverges from conventional practices seen in other countries, like China, to extract these minerals. Environmental considerations remain at the forefront for the state and mining companies.
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“The dependency on Russia for nuclear fuel raises national security concerns, prompting efforts to enhance domestic uranium production. With its in-situ mining operations, Wyoming is poised to contribute to this revival.”
Travis Deti, Executive Director, Wyoming Mining Association
Idaho and Montana
Idaho and Montana, while not as famous as Nevada and Arizona, have a rich history rooted in mining. Both states share a profound mining legacy, but their future role in critical minerals may be more promising. Despite falling out of the top 10 investment-friendly jurisdictions, dropping from 7th to 28th in this year's Fraser Institute survey, exploration, and development companies in these states remain optimistic about the state's approach toward mining. Laurel Sayer, president and CEO of Perpetua Resources, said: "Idaho's commitment to balancing natural resource development with sustainability for future generations is truly commendable. We derived our name, Perpetua Resources, from the state's motto, 'Esto Perpetua,' underscoring our dedication to responsible resource stewardship. The accessibility of state government agencies and their solution-focused approach to discussions regarding permitting aspects further bolsters this commitment."
Idaho hosts two vital mineral belts: The Idaho Cobalt Belt and the Idaho REE-Thorium Belt. The Idaho REE-Thorium Belt runs in close alignment, situated 15 miles east of the more widely recognized Idaho Cobalt Belt. Much like Alaska, Idaho is not as mature and developed as other mining jurisdictions, making it open to new discoveries. Jonathan Buick, president and CEO of Champion Electric, commented: “Idaho is an attractive destination for mining due to its well-established mining code, a strong foundation of the rule of law, and a supportive environment for the mining industry. Moreover, the state has not witnessed the same level of historical investment as neighboring states like Nevada. Consequently, there remains a regional opportunity for mining ventures, with vast geologic potential waiting to be tapped within the state.”
For its part, Montana, similar to Colorado and Nevada, has experienced an improvement in its ranking on the Fraser Institute's Attractiveness Index. As of the latest data, Montana now holds the 23rd position, showcasing an ascent from its previous 31st position. In southern Montana, the Stillwater complex has been a prolific source of platinum group elements (PGEs), nickel, copper, chromium and other minerals. According to Michael Rowley, president and CEO of Stillwater Critical Minerals: "Montana is undeniably a pro-mining state. With its century-long history of mineral production, the Stillwater District stands as a testament to the region's mining-friendly environment."
California
According to the Fraser Institute, California remains the least favorable jurisdiction in the United States. Primarily due to policy-related factors, California's score saw a significant decline of over 19 points, resulting in its current ranking of 46th out of 62. The survey claims that respondents in California voiced apprehensions about the enforcement of existing regulations, as well as heightened concerns about regulatory duplication and inconsistencies.
Securing permits poses a formidable challenge universally. However, what sets California apart? Warren Coalson, president of the environmental consulting firm EnviroMINE, shed some light on this disparity: unlike most states, California entrusts mining regulation to local agencies, introducing a distinctive regional variability. This decentralization results in a proliferation of agencies, complicating the regulatory framework and contributing to a multifaceted process. Furthermore, the public’s misconception of mining, largely based on outdated stereotypes, further complicates the matter. "California's B-52 bill mandates Native American consultation for projects requiring discretionary approval. This adds another dimension, with Native American tribes potentially introducing challenges, such as requesting cultural significance reports, often with financial motivations," added Coalson.
Despite the unfavorable perception from the Fraser Institute, mining activities continue in California, a region boasting several ongoing or development projects poised to enhance the United State's self-sufficiency. A prime example is the Mountain Pass mine situated on the south flank of the Clark Mountain range, close to Las Vegas in Nevada. Operated by MP Materials, it stands as the sole operational REE mine and processing facility in the entire country. On the other hand, in the southern part of California, in the Mojave Desert in San Bernardino County, the Fort Cady project is emerging as the next significant boron-lithium project in the US: "We are fortunate to operate in San Bernardino County, a mining-friendly jurisdiction within a state historically challenging for new projects. Our project has a significant positive impact on an area marked by high unemployment rates and limited opportunities for younger citizens and graduates to secure well-paying jobs," commented J.T. Starzecki, chief marketing officer of 5E Advanced Materials.
In the upcoming commercial Phase 1 production, 5E Advanced Materials expects to generate 90,000 short tons of boric acid and approximately 1,100 short tons of lithium carbonate by the latter half of 2026. A pivotal aspect of their strategy lies in the method intended to extract boron and lithium. By embracing In-situ Recovery, 5E Advanced Materials can reshape public perception of contemporary mining practices and foster a more positive perception of the industry.
Article header image courtesy of Freeport-McMoRan Article separator image by Dane Rhys, courtesy of American Rare Earths