The United States is doubling down on its quest to bolster domestic critical minerals production, and the latest move by the Trump administration is set to send ripples through the mining sector. By invoking the Defense Production Act, the administration aims to provide a financial boost to domestic processing of critical minerals, a strategic pivot that could reshape the industry’s landscape. This development comes as copper prices hit a new high, surpassing $11,000 a tonne in New York, underscoring the global demand and potential for domestic growth.
At the heart of this push is Arizona, the nation’s copper powerhouse, accounting for roughly 70% of domestic production. The University of Arizona is spearheading an ambitious initiative, the Sustainable Mining Innovation and Lifestyle Enhancement (SMILE) Regional Innovation Engine, which has secured finalist status in the National Science Foundation’s (NSF) Regional Innovation Engine Program. If successful, SMILE could secure up to $160 million over a decade to drive environmentally responsible mining and manufacturing in the state.
Kray Luxbacher, Head of Mining and Geological Engineering at the University of Arizona and lead on the SMILE initiative, emphasized the unique opportunity at hand. “It’s a $160 million opportunity over 10 years – and it’s different than most NSF proposals in that you really have to demonstrate that you’re driving economic development in the region, and that your region is the place to do this,” Luxbacher told MINNIG.com. Southern Arizona, with its rich mineral deposits and innovative projects like South 32’s Hermosa and the Resolution mine, is poised to become a hub for mining technology and community development.
The SMILE initiative is a multifaceted approach, focusing on workforce development, technological innovation, and community sustainability. Addressing the industry’s critical skills gap, the program aims to cultivate a mining workforce from elementary school age to adult retraining, partnering with educational institutions like Pima Community College and the Arizona Department of Education.
Technological advancement is another key pillar. The program is exploring energy-efficient solutions, such as automated fleets and remote control mining, which not only enhance safety but also reduce energy consumption. The Hermosa project, with its focus on automation, is a prime example of this technological push.
Community sustainability is the third component, with a 10-year plan to ensure that mining communities thrive beyond the life of the mines. This includes areas near the Hermosa project, the San Javier Proving Ground, and the Resolution mine in Superior.
Inspired by Canada’s NORCAT facility, the SMILE initiative envisions a proving ground where startups and technology companies can test and demonstrate scalable technologies. This facility would serve as a training hub for technicians and advanced engineering degrees, fostering a skilled workforce that can transition to other industries, such as semiconductor manufacturing.
Luxbacher highlighted the broader impact of the initiative: “By educating a workforce for automation and mining, we believe that their skills will be transferable to the chips industry and to other manufacturing in Arizona, which is attractive to young people to know that they have a skill they can pick up and carry elsewhere.”
This strategic push by the U.S. government, coupled with innovative regional initiatives, could significantly alter the mining sector’s trajectory. It challenges the status quo by prioritizing domestic production, technological innovation, and community development. As copper prices soar and global trade disruptions persist, the U.S. is positioning itself to reduce supply chain vulnerabilities and increase its competitive edge in the critical minerals market. The success of the SMILE initiative could serve as a blueprint for other regions, sparking a wave of innovation and economic development in the mining industry.
