BHP weighs revival of defunct Arizona copper mines as U.S. critical minerals policy shifts under Trump

BHP Group Limited is weighing the possibility of reviving four defunct copper mines in Arizona’s historic Globe–Miami mining region, signaling a strategic shift to capitalize on favorable U.S. critical minerals policy, elevated copper prices, and fast-tracked permitting under Donald Trump’s administration. The move underscores the Australian mining giant’s accelerating pivot toward copper—a metal central to global decarbonization and national security agendas.

Chief Executive Officer Mike Henry confirmed that BHP has initiated exploratory drilling across its shuttered Arizona assets while also assessing whether tailings from previous operations can be economically reprocessed. The renewed interest in these dormant U.S. projects, some inactive for decades, reflects what Henry described as a “breathtaking level of ambition and urgency” in the United States’ approach to building a domestic supply chain for energy transition minerals.

The comments were first reported by the Financial Times in an October 2025 interview that highlighted BHP’s increasing presence in the U.S., a country the company now views as offering both geopolitical stability and supportive policy architecture for mining expansion.

What policy signals from the Trump administration are driving BHP’s strategy?

Henry pointed to the Trump administration’s aggressive stance on reshoring critical minerals production and de-risking reliance on foreign supply chains as key drivers for revisiting the Arizona projects. U.S. federal and state authorities have introduced a combination of tariffs, investment tax incentives, and legislative tools like the Defense Production Act to fast-track domestic mining operations, particularly those involving copper, lithium, and rare earth elements.

Permitting reforms, which had long been seen as a structural bottleneck, are now being reengineered to deliver approvals in months rather than years. In that context, BHP sees an opportunity to redeploy capital into assets that were previously considered uneconomical under older policy and pricing regimes.

The Arizona copper belt, in particular, has emerged as a strategic corridor for the Biden and Trump administrations alike, with significant bipartisan momentum to prioritize critical minerals as part of national security and manufacturing resilience.

Which BHP assets are being considered and what is their strategic relevance?

The four mines under review are part of BHP’s historical footprint in the Globe–Miami region. While the company has not disclosed the exact names of the mines, these assets were mothballed when copper prices were low and operational costs outstripped margins. BHP is now analyzing whether the deposits still contain enough recoverable ore to justify reactivation, especially in light of modern processing technologies and higher copper benchmarks.

In parallel, the mining major is evaluating tailings reprocessing potential. By leveraging advancements in mineral recovery and remediation, BHP could extract additional copper from old waste stockpiles—an environmentally preferable option that also minimizes fresh surface disturbance.

The projects would complement BHP’s existing U.S. copper interests, notably its 45% stake in the Resolution Copper project, which is being developed with Rio Tinto and could eventually become one of the largest copper mines in North America.

What role does the Resolution Copper project play in BHP’s U.S. copper ambitions?

Resolution Copper, located near Superior, Arizona, has long been a centerpiece of BHP’s copper growth pipeline. However, the project has faced years of legal challenges and opposition from Indigenous groups over a land exchange tied to its development. Despite these headwinds, the U.S. government recently granted the project “Fast-41” status, placing it on a priority list for expedited federal review.

That designation, introduced under the Fixing America’s Surface Transportation Act, enables Resolution Copper to bypass some procedural delays, a move seen as emblematic of the government’s evolving posture toward strategic mineral projects. For BHP, the signal is clear: the U.S. is once again open for mining business.

This fast-track status also sets a precedent for other stalled or legacy copper projects, including the four mines BHP is now assessing in the Globe–Miami area. With Resolution’s permitting journey as a blueprint, the company may be able to navigate environmental and community-related hurdles more effectively than in the past.

How does this align with BHP’s broader copper strategy?

BHP’s copper ambitions have been intensifying over the past several years. With energy transition metals taking center stage in the decarbonization of power, transportation, and infrastructure, the company has identified copper as a long-cycle growth engine.

Copper demand is expected to double by 2035, driven by electric vehicles, renewable power grids, and global urbanization. Yet supply remains constrained, with declining ore grades and permitting delays hampering new production. Against this backdrop, BHP has steadily repositioned its portfolio, moving away from iron ore concentration toward future-facing commodities.

Recent acquisitions like Oz Minerals in Australia have bolstered its copper reserves. But organic growth, particularly in stable jurisdictions like the U.S., is now gaining priority. The Arizona strategy reflects a broader intent to balance risk, cost, and long-term geopolitical alignment.

What risks or hurdles could complicate the reopening of BHP’s Arizona mines?

Despite the policy tailwinds and pricing upside, reopening decades-old mines is rarely straightforward. Environmental permitting remains a complex affair, especially in a state like Arizona where water scarcity, historical contamination, and community sensitivities are acute. Public consultation processes could extend project timelines, particularly if local or tribal groups raise concerns.

There are also economic considerations. Legacy infrastructure may need significant upgrades to meet modern safety and environmental standards. Labour availability, power costs, and inflationary pressures across inputs like diesel and steel could add further friction to reactivation timelines.

Finally, any move to restart operations will likely be scrutinized through an ESG lens. BHP will need to balance its critical minerals ambitions with its climate commitments, ensuring that tailings management, biodiversity, and water usage are aligned with investor expectations and regulatory requirements.

How are institutional investors and analysts reacting to BHP’s U.S. copper pivot?

Institutional sentiment around BHP’s copper exposure remains largely bullish, especially as traditional mining jurisdictions like Chile and Peru face increasing political instability and regulatory uncertainty. The U.S. now offers a counterweight—a rules-based, investor-friendly environment where capital can flow into strategic resources with long-term clarity.

Analysts at global investment banks have noted that while the immediate earnings impact from tailings reprocessing or small-scale restarts may be limited, the long-term optionality adds value to BHP’s copper pipeline. Reopening defunct mines also signals discipline, as it avoids overpaying for new acquisitions at frothy valuations.

Investors are also watching the interplay between BHP’s Arizona strategy and its ongoing interests in major copper hubs like Escondida in Chile. By diversifying geography, BHP reduces its sovereign risk concentration and increases leverage to Western decarbonization policy cycles.

What are the key project milestones and regulatory steps BHP must navigate next in Arizona?

BHP has already begun fresh exploratory drilling across its Arizona leases, with geotechnical studies and metallurgical testing expected to follow. Depending on the results, the company may proceed to feasibility assessments, stakeholder consultations, and permit applications.

In parallel, the tailings reprocessing review will inform whether a phased or full-scale restart makes sense. Investors will likely get more clarity in BHP’s next operational review or at its upcoming annual general meeting, where critical minerals strategy will be a central theme.

If permitting and environmental assessments proceed smoothly, early construction or refurbishment work could begin as early as late 2026, though commercial production would still be several years away.