The following is the opinion and analysis of the writer:
While mining is at times talked about as an industrial relic of the past or environmentally unsustainable, this industry is very much the future of our regional sustainability and economic health, and of strengthening our national security and energy independence.
There is an urgency and optimism at this moment, and this is why the Tucson Metro Chamber is an active supporter of our region’s mining operations and technological advancements.
Here’s what we’re seeing.
In 2022, Congress passed the Inflation Reduction Act. This legislation aimed to, in part, tackle two interconnected goals. The first was to decrease carbon emissions and transition to renewable energy. The second has national and energy security implications: reducing dependency on foreign and adversarial countries that are the majority producers of critical minerals and those needed to make that transition.
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A striking and easy example of this is seen in the demand for electric vehicles (EVs). It is estimated that the market for EVs will increase from $24 billion in 2020 to over $137 billion (about $420 per person in the US) by 2028. At the core of EVs are lithium-ion batteries, which use five key critical minerals, namely lithium, nickel, cobalt, manganese and graphite. Solar, wind and battery technologies all require substantial amounts of copper and critical minerals.
But the 2023 USGS Mineral Commodity Summaries state that we currently source 100% of 12 critical minerals from foreign sources and import 50% of another 31 minerals.
When it comes to ending dependence on China, the numbers are even more stark. According to the USGS, China was the world’s leading producer of 30 out of 50 critical minerals in 2022, and Brookings Institution showed in a recent study that China also dominates the refining of key critical minerals like nickel, copper, lithium, and cobalt. This has resulted in China manufacturing most the world’s solar panels, and EV and lithium-ion batteries.
So, what does this have to do with Southern Arizona?
We are in an exciting position where we are poised to play a significant role in shaping a more secure and sustainable future, here and around the world.
The new School of Mining and Mineral Resources at the University of Arizona is focused on addressing mining and mineral challenges, including sustainability, led by the former Director of the Arizona Department of Environmental Quality, Misael Cabrera.
In Santa Cruz County, South32 is investing $2.16 billion to design and build its Hermosa project to mine two federally designated critical minerals — zinc and manganese — in a zero-carbon way. An estimated 900 jobs will be created, paying an average annual salary of $90,000, double the county’s current household income.
Arizona currently accounts for 70% of the copper produced in the United States. Hudbay’s initiatives, including Copper World in the Helvetia area, are set to enhance this legacy and meet the growing global demand for copper. By manufacturing “Made in America” copper cathodes, Copper World is poised to become the third-largest domestic producer of cathodes in the nation. HudBay is committed to sustainability, targeting a 14% reduction in project greenhouse gas emissions as part of their broader goal to halve emissions across all operations by 2030, and net-zero emissions by 2050.
On the mining technology side, Caterpillar, Hexagon and Modular Mining/Komatsu have developed new and innovative technologies right here in Tucson to make mining safer and more environmentally conscious. Tucson is home to both the operational and technology side, both working to address the critical mineral and environmental conscious needs.
As Southern Arizona leaders have sought to make Tucson a pioneer in moving towards more renewable energy sources, we urge them to acknowledge that the path there is not magically paved. We have the resources under our feet and the academic and private sector partners required to innovate and create new technologies, all while producing better jobs and wages in the process.
The Chamber will continue to be a bold advocate for Southern Arizona capitalizing on these critical minerals that power our everyday needs and our region’s economic sustainability.
Michael S. Guymon is President and CEO of Tucson Metro Chamber.