Canada’s Taseko Mines (TSX: TKO; NYSE: TGB) has harvested copper cathodes from its Florence operation in Arizona, marking the first new red metal production from a greenfield project in the U.S. since 2008.
The milestone positions Taseko to become the third-largest copper cathode producer in the U.S. once the operation reaches its nameplate capacity of 85 million lb. of London Metals Exchange Grade A copper per year, the company said Monday.
Florence Copper is expected to produce at least 1.5 billion lb. of copper over a 22-year mine life. Taseko said all metal produced at the site will remain in the country, supporting domestic manufacturing and reducing reliance on imports.
“Producing LME Grade A copper cathode for America’s manufacturing sector, including automotive, semiconductor, defence/aerospace and AI data centres, will meaningfully strengthen U.S. manufacturing and supply chain security,” Taseko President and CEO Stuart McDonald said in a release.
Shares in Taseko Mines closed 1.6% weaker on Monday in Toronto at $11.96 apiece, valuing the company at $4.36 billion.
Step forward
American copper production has remained largely flat in recent years, even as demand accelerates. Benchmark Mineral Intelligence recently found the U.S. can meet 146% of its domestic copper demand through a combination of mine output and scrap, compared with just 40% for China, the world’s largest consumer.
Yet nearly 48% of U.S. mined copper concentrate is exported, largely because of limited domestic smelting and refining capacity.
Taseko said Florence represents a step forward for the country’s critical minerals strategy as it is also the first greenfield site globally to use in-situ copper recovery, or ISCR. This is a lower-cost method that the company says offers environmental advantages over conventional mining.
The project advances Taseko’s goal of becoming a leading North America-focused copper producer, McDonald said.
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