Trump adds copper and metallurgical coke to the US list of critical minerals

The Trump administration released a list of essential minerals on Thursday, including copper, which plays a vital role in electric vehicles, power grids and data centers. It also includes metallurgical coke, which can be used to produce coke.

The list of minerals maintained by the Interior Department guides federal investment and permits decisions, and shapes government's overall mineral strategy.

The administration has expanded the list in an effort to boost domestic mining, and reduce reliance on imported goods from China or other economic rivals.

This list is a blueprint that Washington uses to ensure the supply of materials for technologies in defense, manufacturing and clean energy. The list determines which projects are eligible for federal incentives. It also informs the national stockpiling priorities and research priorities and signals to investors where Washington sees strategic value in long-term.

Officials and leaders in the industry say that strengthening domestic production can help protect the U.S. against potential supply shocks, or export restrictions imposed on competitors such as China, who dominates global refinement of many essential minerals.

The Interior Department announced the list, saying that "Critical Minerals are essential for national stability, economic stability and supply-chain reliability because they underpin critical industries, drive technology innovation and support vital infrastructure vital to a modern American Economy."

Copper is widely used in the global economy for power generation, electronic devices and construction.

Freeport-McMoRan is the biggest copper producer in the United States. It has seven mines, and controls one of two smelters. Earlier this year, it said that the company could earn more than $500,000,000 annually from tax credits linked to the U.S. Inflation Reduction Act of 2022 if Washington declared the red metal critical.

On Thursday, the Phoenix-based company did not respond to requests for comment.

Freeport's U.S. mines have a lower average grade of copper, or the percentage of the mineral in rock deposits. This increases costs, making the U.S. its least profitable region. This fact is a major reason why Freeport sought the designation.

Kathleen Quirk, CEO of Freeport, said in March that "we're not seeking handouts" but that it is important to acknowledge that the U.S. does not have the same grades as we do internationally. (Reporting and editing by Paul Simao; Jarrett Renshaw)

(source: Reuters)