Critical Minerals and Energy Intelligence. Stay Ahead.

Copper set to be officially listed as critical mineral in US

The US House of Representatives has passed the Critical Mineral Consistency Act 2024, to expand the definition of officially designated critical minerals to include “critical materials” listed by the Department of Energy.

The US list of critical minerals will now include:

copper
electrical steel
silicon
and silicon carbide

Advantages to being listed as a critical mineral include eligibility for the FAST-41 permitting process in the list

accelerated permitting, in particular, eligibility for the FAST-41 permitting process
investment incentives, including opportunities for federal subsidies and support for domestic projects
national security enhancement, potentially leading to more direct government intervention in the sector

A new report by BHP, the world’s largest mining company by market capitalisation, warns total copper demand is forecast to grow at an average rate of 2.6% per year to 2035, an increase from 1.9% from 2006-2021, to more than 50 Mt per year by 2050.

Global copper production and primary demand 1 - The Oregon Group - Critical Minerals and Energy Intelligence

The bill has been welcomed by the industry, for example, Adam Estelle, CEO of the Copper Development Association, hailed the decision, stating:

“This vote highlights copper’s essential role in powering America’s energy future, electrifying transportation, creating jobs, and strengthening infrastructure. This is a significant win for US manufacturing, the clean energy transition, and our nation’s global competitiveness.”

The bill modifies the Energy Act of 2020 and was passed with bipartisan support of both Republicans and Democrats. The bill must now pass the Senate.

By expanding the definition of critical minerals, the bill requires the US Geological Survey to include on any materials on Department of Energy’s list within 45 days of DOE adding a mineral, element, substance, or material to its critical materials list.

According to our recent report, global supply of copper, essential for a host of industries and crucial to green technology and the global energy transition, is expected to face a supply gap of nearly 10 million mt within the next ten years:

Copper: at the centre of the metal supercycle

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