Arizona Copper Project Faces Federal Court Injunction on Sacred Land Transfer

Arizona Copper Project

A federal judge temporarily blocked the Arizona copper project land swap between the US government and Resolution Copper, a Rio Tinto/BHP mining venture. The court injunction halts the transfer of 2,422 acres in Arizona's Tonto National Forest, known as Oak Flat, which contains an estimated 1.787 billion metric tonnes of copper resources. This Arizona copper project represents one of the largest undeveloped copper deposits in North America, making the legal challenge significant for US mineral security.

Apache Stronghold Lawsuit Challenges Sacred Land Development

Apache Stronghold, representing Native American tribal interests, filed a lawsuit claiming the land transfer would violate religious freedom and due process rights. The tribal group argues that Oak Flat serves as sacred ceremonial grounds that would be "completely destroyed" under the proposed Arizona copper project development. Meanwhile, the federal judge ruled that the case presents "serious questions" warranting potential Supreme Court review.

The Supreme Court has declined to review the case on 13 previous occasions, creating ongoing uncertainty for the project timeline. However, the current injunction remains effective until the day after the Supreme Court decides whether to hear the case. Therefore, the Arizona copper project faces indefinite delays despite congressional approval granted in 2014.

Mining Companies Face Mounting Financial Pressure from Project Delays

Rio Tinto and BHP have invested $2.7 billion in the Arizona copper project and currently spend nearly $11 million monthly on site maintenance fees. These substantial ongoing costs create significant financial pressure while the project remains in legal limbo. As a result, the companies must continue substantial expenditures without generating revenue or advancing construction activities.

Despite these challenges, federal officials recently selected the Resolution Copper project for expedited permitting under a new process designed to accelerate US mineral production. This designation highlights the project's strategic importance for domestic copper supply chains and critical mineral security. However, the land transfer injunction effectively supersedes any permitting acceleration until legal issues are resolved.

The proposed land swap would exchange the 2,422-acre Oak Flat parcel for 5,344 acres of Resolution Copper land elsewhere. This exchange ratio demonstrates the high value placed on the copper-rich Oak Flat site for the Arizona copper project development.

The Metalnomist Commentary

This legal setback underscores the complex intersection of indigenous rights, environmental protection, and critical mineral development in US mining policy. The Arizona copper project's massive resource base makes it strategically important for domestic copper security, but resolution requires balancing legitimate tribal concerns with national mineral security objectives.