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Copper are fighting for critical mineral statusSome of the biggest names in copper have found high-level political allies who support their efforts to have the harness metal added to the list of minerals considered critical to the United States.

Copper are fighting for critical mineral status.

Independent Senator Kyrsten Sinema of Arizona on Thursday sent a letter along with other lawmakers urging Interior Secretary Deb Haaland to “review and reconsider the designation of copper as a critical mineral”. The signatories also include other senators whose home states are centres of copper production and manufacturing, including Mark Kelly of Arizona, Joe Manchin of West Virginia, Mike Braun of Indiana, Raphael Warnock of Georgia and Mitt Romney of Utah.

“This should not be a problem,” Sinema said in an interview. “We have large gaps in our ability to mine and process these minerals to ensure our energy security for the future, and the administration knows how important copper is to our national and homeland security.”

The letter warns of a “significant increase in copper supply risk” caused by economic and geopolitical events such as the war in Ukraine. “Given the enormous investment required, the timing of new sources and the expected demand, time is of the essence.”

Separately, Representatives Brian Higgins, Democrat of New York, and Robert Latta, Republican of Ohio, signed a letter on 2 February asking Haaland to immediately reconsider adding copper as a critical mineral.

The push comes in addition to lobbying by the Copper Development Association to urge the US government to consider copper as a critical mineral, joining a list of 50 other minerals already identified as vital by the government. Members of the association include some of the largest copper producers, including Rio Tinto Group, BHP Group and Freeport-McMoRan Inc. and manufacturers such as Mueller Industries Inc.

The list of critical minerals in the US is updated every three years and includes key battery metals needed for the production of electric vehicles, such as nickel, lithium and zinc. The last update, in 2022, did not include copper despite pressure, but added nickel and zinc. The senators are asking the White House to skip the usual three-year review and add copper to the list as soon as possible.

Some of the world’s largest miners and metals traders have warned that copper will suffer a huge shortage, holding back global growth and throwing international climate targets off track, given its importance in electrifying economies.

On the price front, the 3-month copper chart in $/ton shows in recent sessions a corrective movement from the recent period highs in the $9,550/ton area, approaching the target proposed weeks ago by Commodity Evolution’s research office in the $9,000/ton area ($9,003/ton is the minimum price reached in yesterday’s session on 2 February 2023).

It will now be crucial to carefully monitor the situation, because any further retracement of prices below $9,000/mt could push prices towards the next supports positioned at around $200-250/mt below ($8,800-8,750/mt).

However, the medium-term trend is still upward, as it is assumed that the current correction may be of a temporary nature, ready to resume at any time.

Copper are fighting for critical mineral status

Copper – 3 month $/ton – daily