Copper

Just had a conversation with a friend from my hometown of Lower Burrell. The topic was copper.

🧰 1. How Copper Is Used

• Electrical wiring and components: copper accounts for ~50% of its global use, prized for unmatched conductivity in power grids, electronics, automotive wiring, and telecom infrastructure (copper.org, Wikipedia).

• Heat exchangers & refrigeration systems: used in HVAC, radiators, computer cooling, and industrial condensers due to its excellent thermal conductivity and resistance to corrosion or microbial buildup (Xometry, Wikipedia).

• Plumbing, marine, and piping: favored for corrosion resistance and ease of bending in water, natural gas, oil, and marine systems (Warner Brothers Foundry Company, copper.org).

• Alloys and built goods: brass and bronze in musical instruments, door hardware, tools, decorative surfaces, and architectural features—all benefiting from durability and antimicrobial properties (Rotax Metals).

• Recyclability: over 80% of all copper ever mined is still in use, making it one of the world's most recycled industrial metals (Rotax Metals).

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🏔 2. Where Copper Is Mined

• Top global producers (2024): Chile (~5.3 Mt, 1st), DR Congo (~3.3 Mt, 2nd), Peru (~2.6 Mt, 3rd), then China, U.S., Indonesia, Russia, Australia, Kazakhstan, Mexico (Wikipedia).

• Major specific mines:

  • Escondida and Collahuasi in Chile dominate global output, with Escondida alone producing ~7% of total copper globally (ABCDust).

  • In the U.S., the largest is Bingham Canyon (Kennecott) in Utah, among the highest-producing copper mines in history (Wikipedia).

  • Most U.S. copper is mined in Arizona (e.g. Resolution, Hayden, Miami operations), and there are three active smelters in Arizona and Utah (Fastmarkets).

• Regional output: Latin America (especially Chile and Peru) produces ~46% of the world’s raw copper (CSIS Features).

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🚢 3. Countries Exporting Copper to the U.S.

• The United States imports nearly 50% of its refined copper, mostly from:

  • Chile

  • Canada

  • Peru (The White House).

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📉 4. Copper Tariffs and Trade Policy

• On August 1, 2025, the U.S. will enforce a 50% tariff on copper imports under Section 232, citing national security concerns tied to U.S. reliance on foreign suppliers (The Washington Post).

• This action caused physical copper futures (COMEX) to spike over 12–13%, and triggered large pre-tariff stockpiling—U.S. imports soared to ~541,600 metric tons between March–May ahead of August (Reuters).

• Analysts warn that actual U.S. copper self-sufficiency could take a decade or more, given long project timelines and lagging domestic refining capacity (Fastmarkets).

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🇺🇸 5. Building U.S. Copper Dominance

A. Expand Mining & Processing

• New domestic projects, such as Ivanhoe Electric’s Santa Cruz mine in Arizona, could begin production by 2028 and yield nearly 3 billion pounds over 23 years—helping meet national demand (New York Post).

• Regulatory acceleration and infrastructure investment are essential; typical U.S. mine-to-production timelines average 29 years (Fastmarkets, The White House).

B. Boost Domestic Recycling

• The U.S. has substantial underutilized secondary (scrap) refining capacity—only ~21% currently in use. Investments in plants (e.g. in Georgia, Kentucky, Indiana) could significantly raise domestic refined copper supply (Fastmarkets).

C. Leverage Tariffs Strategically

• The 50% tariff is intended to incentivize domestic sourcing and reduce dependence on imports—but short-term price increases and supply gaps remain a concern (Fastmarkets).

• Domestic firms like Revere Copper Products are already benefiting from strategic pivots toward U.S.-made copper production (The Wall Street Journal).

• Government-led critical minerals designation and streamlined permitting can support faster project ramps.

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🧭 Summary Table

Topic	Key Points
Primary Uses	Electrical wiring, heat exchangers, plumbing, alloys, anti‑microbial surfaces
Top Mining Countries	Chile, DR Congo, Peru lead; U.S. ~5th globally; major U.S. mines in Utah & Arizona
Main U.S. Import Sources	Chile, Canada, Peru (~half of refined copper usage)
Tariffs	50% import tariff starting Aug 1, 2025 via Section 232
U.S. Self-Sufficiency Roadmap	Develop mines (Arizona projects), scale up recycling/refining, speed permitting

✅ Next Steps

• Support investments in U.S. mines and refining infrastructure with policies that accelerate permitting and financing.

• Scale recycling operations using domestic scrap to build secondary copper supply.

• Track key projects like Santa Cruz (Ivanhoe), U.S. refining facilities, and Revere’s expanding production.

• Measure progress: target to reduce reliance on imports (currently ~50%) within 5‑10 years.

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