Rio Tinto Ltd (RIO.AU) shares surged 6.93% in pre-market trading, as investors reacted positively to news of potential support from the Trump administration for the company's massive copper project in Arizona. The mining giant has been facing challenges with its Resolution Copper mine, which has been hindered by Native American opposition and permitting setbacks.
According to reports, Rio Tinto has held discussions with the US administration regarding the advancement of the Resolution project. The Trump administration's focus on boosting critical mineral production in the United States and reducing dependence on foreign sources could provide a pathway forward for the mine. This development comes at a crucial time, as copper demand is expected to rise due to the global shift towards renewable energy networks.
The Resolution Copper mine, jointly owned by Rio Tinto (55%) and BHP (45%), has the potential to supply a quarter of US copper demand. However, its fate currently hinges on a Supreme Court case involving the Apache Stronghold, who claim the land has religious significance. Investors are now speculating that Trump's emergency powers and the administration's desire to expedite permitting processes could potentially override these obstacles, leading to a more favorable outlook for Rio Tinto's copper ambitions in the United States.
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