Copper is vital for the transition to green energy but the project in Arizona is opposed by all of the state's tribal councils, including the San Carlos Apache because it would destroy a heritage site of religious significance.
Rio Tinto has pledged to follow United Nations principles
that require full consent from Indigenous groups for mining on
traditional lands in the wake of its destruction of significant
rock shelters in Western Australia for an iron ore mine in 2020.
"We are getting immense pressure to proceed because of the
copper reserves that are there," Barton told shareholders at Rio
Tinto's Australian shareholders meeting.
Pressure was coming from "parts of the U.S. government," Barton clarified on a media call following the meeting, as U.S. senators seek to get copper put on the U.S. critical mineral list which would allow copper projects access to tax breaks. "We are engaging and we are not (making) any conclusions but we are going through a process right now," CEO Jakob Stausholm said.
"It's not just a matter of government approvals, but it's
also a matter of us convincing ourselves it's the right thing."
The U.S. Forest Service is set to approve a land swap
between the U.S. government and Rio Tinto that would allow the
mining giant to develop Resolution but Indigenous groups object
to the transfer and contest ownership of the land.
Rio Tinto has been under a "deep engagement" process with
the groups for the past nine years. "Ultimately it's societal
choice," Stausholm added.
The U.S. consumes around 2 million tonnes of copper a year
but produces less than 1 million tonnes, Stausholm noted, and
U.S. copper demand is only expected to grow sharply in coming
years, he added.
(Reporting by Melanie Burton; Editing by Himani Sarkar and Stephern Coates)
+613 9286 1421; Reuters Messaging: melanie.burton.thomsonreuters.com@reuters.net))