USDA Puts Brake on Massive Rio Tinto, BHP Copper Project
March 01 2021 - 8:09PM
Dow Jones News
By Rhiannon Hoyle
The U.S. Department of Agriculture will withdraw a key
environmental review for a planned Arizona mine that could supply
up to a quarter of U.S. copper demand.
The Forest Service in January released a final environmental
impact statement and draft record of decision for Rio Tinto PLC and
BHP Group Ltd.'s Resolution Copper project in Superior, Ariz., that
opened the door to a land exchange needed to develop what is one of
the world's largest known, undeveloped copper deposits.
But the USDA on Monday directed the Forest Service to rescind
those reports, saying more time was needed to fully understand
concerns raised by tribes and the broader community about the
project proposed on Oak Flat, a site sacred to local Native
American communities.
"The Department is taking this step to provide an opportunity
for the agency to conduct a thorough review based on significant
input received from collaborators, partners, and the public since
these documents were released," the USDA said.
Another round of consultations on the project could take several
months, it said.
The reports were released on Jan. 15, days before the end of
Donald Trump's presidency. Since taking office, President Joe Biden
signed a presidential memorandum aimed at improving tribal
consultation.
The Forest Service only has a limited capacity to protect Oak
Flat because the land exchange was directed under the National
Defense Authorization Act, the USDA said. "Long-term protection of
the site will likely require an act of Congress," it said.
The U.S. government was expected to swap national forest land
for eight parcels privately held throughout Arizona by the
Resolution Copper joint venture within 60 days of the final
environmental statement being published.
The land exchange is a necessary step for the companies to
access areas above the deposit, although it has faced opposition
from some Native American tribes for whom the land is used for
spiritual and traditional customs. Engaging with tribal leaders on
their concerns will test the miners' renewed focus on cultural
heritage following Rio Tinto's destruction of two ancient rock
shelters in Australia last year that triggered the removal of its
CEO.
"Resolution Copper is evaluating the Forest Service's decision
to rescind its final EIS and draft record of decision," a spokesman
for Resolution Copper said in an emailed statement. "In the
meantime, we will continue to engage in the process determined by
the U.S. government and are committed to ongoing consultation with
Native American Tribes and local communities."
Rio Tinto and BHP in 2013 started the permitting process for the
Resolution copper deposit. The deposit sits well below the Earth's
surface, up to 7,000 feet deep, and the companies project a mine
there could produce as much as 40 billion pounds of copper over
four decades.
"The mining industry stands ready to support the Biden
administration's aggressive plans for electrification and
modernizing our nation's electric grid--actions that will require
massive amounts of copper and other mined materials--but it is
imperative that our permitting processes proceed in a timely manner
to support those goals," said National Mining Association President
and Chief Executive Rich Nolan.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
March 01, 2021 19:54 ET (00:54 GMT)
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