U.S. Copper Mining Market Size, Share & COVID-19 Impact Analysis, By Process (Open-pit Mining and Underground Mining), and By Grade (Below 0.5%, 0.5%-1.0%, 1.0%-1.5%, and Above 1.5%), and Country Forecast, 2023-2030

The U.S. copper mining market size was worth USD 474.33 million in 2022 and is projected to grow at a CAGR of 3.74% during the forecast period.

The U.S. is one of the largest copper producers in the world. Copper is the most used metal with applications in various industries such as electronics, building construction, transportation, and energy. The U.S. produces copper from both primary and secondary sources. Primary copper production involves mining copper ores, while secondary production involves recycling copper-containing materials, such as copper scrap, old copper pipes, and electronic waste. The leading copper-producing states in the U.S. include Utah, New Mexico, Nevada, Arizona, and Montana.

The copper mining industry, like many others, faced disruptions in the supply chain due to lockdowns, restrictions on movement, and changes in global trade patterns due to COVID-19 pandemic. These disruptions have affected mining operations, transportation, and the availability of necessary equipment and materials.The pandemic led to economic slowdowns in various regions, affecting industrial activities and construction projects.

U.S. Copper Mining Market Trends

Growing Technological Advancements to Aid Copper Mining Operations in the U.S.

Technology plays a significant role in optimizing copper mining operations. Advancements in automation, data analytics, robotics, and remote sensing are improving operational efficiency, safety, and resource management in the mining process. Digital technologies are being used to capture and analyze vast amounts of data generated during mining operations. This enables better decision-making and optimization of processes like ore extraction, resource allocation, and equipment maintenance. Predictive analytics and machine learning algorithms help identify trends and patterns for improved operational efficiency.

U.S. Copper Mining Market Growth Factors

Rising Global Shift Toward Renewable Energy Sources to Drive Market Growth

The capacity of renewable energy installations, such as solar and wind farms, is rapidly increasing worldwide. Governments, businesses, and individuals increasingly invest in renewable energy projects to reduce carbon emissions and transition to a more sustainable energy mix. The construction of these installations needs a significant amount of copper wiring and infrastructure, driving the demand for copper in the mining market. The U.S. has implemented policies and incentives to promote renewable energy sources adoption and reduce dependence on fossil fuels. These policies, including renewable energy targets, feed-in tariffs, subsidies, and tax credits, stimulate investments in renewable energy projects. As a result, the demand for copper in the renewable energy sectors has increased, supporting the market growth.

RESTRAINING FACTORS

Changes in Government Policies and Regulations Regarding Mining Practices and Environmental Standards Can Hamper Market Growth

Political instability, including government changes, social unrest, or conflicts in major copper-producing regions, can disrupt mining operations and supply chains. Political instability can lead to project delays, supply disruptions, and increased operational risks for mining companies. This uncertainty can hamper the U.S. market growth during the forecast period.

Changes in government policies and regulations associated with mining practices, taxation, environmental standards, or indigenous rights can impact this market. Stringent regulations may increase compliance costs for mining companies, require additional environmental safeguards, or limit access to mining areas. Policy changes can create uncertainties and affect investment decisions in the copper mining sector.

U.S. Copper Mining Market Segmentation Analysis

By Process Analysis

By process, the market is segmented into open-pit mining and underground mining.

The open-pit mining segment accounted for the largest share of the U.S. market as they are more cost-effective than underground mining methods for large-scale copper extraction. The scale of open-pit mines enables efficient ore extraction and processing, reducing the need for multiple smaller underground operations.

• As per earthdata.nasa.gov, the Bingham Canyon mine in Utah, U.S., is the deepest open-pit mine globally, with a depth of more than 1.2 km.

By Grade Analysis

Based on grade, the market is segmented into below 0.5%, 0.5%-1.0%, 1.0%-1.5%, and above 1.5%. The 1.0%-1.5% segment is the dominating segment and the grade copper deposits can still be economically viable for mining under certain conditions. Factors, such as the scale of the deposits and favorable operating costs can contribute to the economic feasibility of mining these deposits; thus, 1.0%-1.5% grade copper dominates the market. Moreover, Lower-grade copper deposits with 1.0%-1.5% may be more abundant and mostly distributed than higher-grade deposits.

List of Key U.S. Copper Mining Market Companies

In terms of the competitive landscape, the market depicts the presence of established and establishing mining companies in the U.S. Rio Tinto dominated the U.S. copper mining market share. The company is investing in its Kennecott operation near Salt Lake City, Utah, to increase its supply of copper in the U.S. by expanding production from underground mining and enhancing the health of key assets. USD 498 million of funding has been accepted to provide underground infrastructure and development for an area specified as the North Rim Skarn.

Some other companies with a considerable presence in the U.S. market include FreePort-McMoRan, BHP, Southern Copper Corporation, Hudbay Minerals Inc., Excelsior Mining Corp, and others. For instance, in May 2023, a new partnership between BHP and Microsoft utilized artificial intelligence and machine learning to enhance copper recovery at the world’s largest copper mine.

LIST OF KEY COMPANIES PROFILED:

• BHP  (U.S.)


• Rio Tinto (U.S.)


• Freeport-McMoRan (U.S.)


• Southern Copper Corporation (U.S.)


• Capstone Copper (U.S.)


• Excelsior Mining Corp. (U.S.)


• Hudbay Minerals Inc. (U.S.)


• Hecla Mining Company (U.S.)


• PolyMet Mining Group (U.S.)


• Sandfire Resources America Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2023 – Hudbay Minerals Inc. acquired Copper Mountain Mining Corporation. Hudbay will take control of all issued shares and outstanding common shares of Copper Mountain. The transaction will produce a leading Americas-focused copper mining company.


• November 2022 – BHP Group Ltd. made an enhanced USD 6.4 billion offer to acquire copper producer OZ Minerals Ltd. The acquisition will build up BHP’s portfolio in nickel and copper.


• July 2022– PolyMet Mining Company partnered with Teck to expand Minnesota copper mines. The agreement will help to form a 50:50 joint venture to progress Teck’s Mesaba Mineral Deposit and PolyMet Mining Inc.’s NorthMet project.

REPORT COVERAGE

The U.S. copper mining market report provides a detailed analysis of the market. It focuses on key aspects, such as an overview of technological advancements, the prevalence of the copper mining industry in the U.S., and pricing analysis. Additionally, it includes information about new product launches, key industry developments, such as mergers, partnerships, & acquisitions, and the impact of COVID-19 on the market. Besides this, the report also offers insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation