South32’s copper treasure chest

South32 is hoping a Trump Administration could help unearth a 1.9-billion-pound copper mine in north-west Alaska.

A potential policy shift under Donald Trump’s second administration could reignite plans for a controversial industrial road, essential for accessing the vast resources in the Ambler mining district.

In partnership with Canada’s Trilogy Metals, South32 owns a 50 per cent share in the Upper Kobuk Mineral Projects (UKMP).

These assets, comprising the Arctic and Bornite copper projects, hold a combined resource estimate of eight billion pounds of copper, three billion pounds of zinc, and one million ounces of gold equivalent.

According to a 2023 feasibility study, the proposed Arctic mine alone is projected to produce over 149 million pounds of copper annually during its 12-year mine life, along with substantial outputs of zinc, lead, gold, and silver.

Despite seasonal exploration constraints in the region, South32 chief executive officer Graham Kerr highlighted the potential for discovering additional high-grade copper deposits, calling the opportunity a “game changer”.

South32’s strategic UKMP investment comes as copper demand surges due to its critical role in renewable technologies.

BHP and UBS forecast significant supply deficits in the near-term, with copper consumption expected to grow by one million tonnes annually until 2035.

Unlocking Alaska’s resources could provide much-needed supply to meet this rising demand.

Shares in Trilogy Metals surged following Trump’s re-election, reflecting market optimism about the road project’s potential revival.

However, the path forward is fraught with challenges as the Biden Administration previously blocked the road project, citing environmental concerns and opposition from Indigenous groups.

Reopening the debate under Trump’s presidency could escalate conflicts between economic development and conservation efforts.

“It’s a long-term play, but in a couple of years we’ll know the size of the resource,” Kerr said. “The challenge is in exploring up there, because the seasonal window is narrow.”