US Adds Copper and Coal to Vital Minerals List

The U.S. government has recently updated its list of crucial minerals, now including copper and metallurgical coal. This move is part of a broader plan to strengthen the country's economy and security by reducing dependence on foreign imports, especially from China.

Why Copper and Metallurgical Coal Matter

• Copper is essential for:
• Electric vehicles
• Power grids

• Data centers

• Metallurgical coal is crucial for:
• Making coke, a key ingredient in steel production

By adding these minerals to the list, the government signals its intent to boost domestic mining and secure supplies for defense, manufacturing, and clean energy technologies.

The Strategic Importance of the List

The list serves as a guide for:

• Federal investments
• Permitting decisions
• Shaping the government's minerals strategy

Projects involving these critical minerals can qualify for federal incentives, benefiting companies like Freeport-McMoRan, the largest U.S. copper producer.

Freeport-McMoRan's Stake

• Freeport-McMoRan could gain over $500 million annually in tax credits if copper is deemed critical.
• However, the copper grades in Freeport's U.S. mines are lower than in other parts of the world, making production more expensive and less profitable.
• This is why the company is advocating for the designation.

Global Context

The U.S. is not alone in this effort. Many countries are looking to secure their own supplies of critical minerals to avoid potential supply shocks or export restrictions. By strengthening domestic production, the U.S. can insulate itself from these risks and support key industries.