Steve, you are originally from Rhode Island. What led you to Arizona and specifically to the Arizona Mining Association?
I moved to Arizona when I was relatively young because my dad transferred work, and we ended up in the Phoenix metropolitan area. My introduction to mining happened when I was working for the Mesa Public Schools over 30 years ago. I met a gentleman who worked for the mines and told me about a place called Morenci, a Phelps Dodge property mined continuously since the 1870s. Fascinated by this, I wrote a paper on Arizona mining while at Arizona State University, which led me to visit Morenci. Witnessing the economies of scale, history, and beneficiation methods there hooked me immediately.
I pursued a career in education, frequently incorporating mining into my teaching of natural resources, Arizona history, chemistry, and geology. Eventually, I was hired as an education consultant for the mining industry, and have worked in mining for about 30 years now. My passion for mining and education naturally led me to the Arizona Mining Association and the Arizona Rock Products Association, where I continue to advocate for the industry and its significant impact on our state.
As of today, Arizona is the primary mining state in the US. Could you offer us a brief sketch of the main mining activities in the state and their relative importance?
Arizona is a mining state historically, as symbolized by a miner on our state seal, a copper dome on our state capital, and a copper star on our state flag. We are the number one producer of non-fuel minerals in the nation, with 74% of the newly mined copper in the US coming from Arizona. Besides copper, we produce gold, silver, and byproducts like selenium, trillium, and molybdenum used to harden steel. Our rich mineral endowment includes rhenium, iron, lead, zinc, rare earth elements, manganese, uranium, and potash.
The mining industry directly employs over 14,000 people in Arizona and indirectly supports an additional 47,000. Including the aggregates sector, which represents a $5.9 billion impact. The total economic impact of the mining industry, including hard rock minerals like gold, silver, and copper, is approximately $20.1 billion. The Fraser Institute ranks Arizona in the top 10 mining-friendly jurisdictions worldwide, making it a significant player in the global mining industry.
We know that long permitting processes are a significant issue for the mining industry in the US. Would you say that permitting in Arizona is easier?
The permitting process in Arizona is highly regulated, both at the federal and state levels. While Arizona policymakers understand the importance of minerals, permitting still takes a long time, often more than a decade. This varies on a case-by-case basis, depending on the project and its challenges. Arizona is predominantly federal land, which forces us to frequently interact with the federal government. This interaction, along with dealing with state agencies, makes the permitting process complex and time-consuming.
Which resources that the state possesses have not been sufficiently exploited to this date?
I would say that manganese, zinc, lithium, and rare earth elements are underdeveloped and have significant potential for development in Arizona.
Do you see Arizona becoming a significant global player in the context of the green transition?
That is a tough question. The potential for Arizona to become a significant player depends largely on the new administration, the governor's office, the legislature, and state agencies' future cooperation. The green technology transition relies heavily on mining, and understanding this is crucial. Additionally, we must mine responsibly and be respectful of native lands, as Arizona has 22 tribes with significant interests in these lands.
With the Biden administration's ban on Russian uranium, do you see the possibility for a novel impulse for uranium mining in Arizona?
Most of the federal land with uranium reserves in Arizona has been made off-limits by the federal government. A recent creation of a national monument, just under a million acres, encompasses much of our uranium reserves. Only one mine was permitted, so already operational mines remain unaffected. However, with much of the land now off-limits, the future of uranium mining in Arizona remains uncertain despite the potential national demand due to the ban on Russian uranium.
What would you highlight as Arizona Mining Association's key initiatives to sustain the state's leading role?
There are three main areas we focus on: policy, regulatory work, and community relations. At the federal, state, and local levels, we handle policy to ensure that legislators understand the impact of their decisions on mining. We also engage in regulatory work, collaborating with state agencies on rulemakings and permitting.
This includes working with the Arizona Department of Environmental Quality and the State Mine Inspector's Office. Our goal is to maintain great relationships with highly qualified state personnel who are solution-oriented.
Additionally, we emphasize community relations to educate the public about modern mining practices. Our key initiatives include maintaining the viability of mining amid rising demand for minerals and ensuring sustainable and responsible mining. We focus on environmental stewardship, worker health and safety, and effective engagement with local communities to address their needs and concerns.
What is the number one challenge mining companies in Arizona face?
Workforce challenges are the primary concern. With many miners retiring soon, there is a pressing need for engineers, operators, and others who understand the industry. The industry has become more sophisticated, requiring higher education levels. For example, in the Safford area, which is rural, the Morenci Mine employs highly educated professionals like metallurgists, biologists, chemists, and engineers. However, attracting people to work in rural areas is challenging, and there is intense competition for skilled labor and engineering graduates.
Additionally, regulatory challenges make it difficult to get a mine operational quickly enough to meet growing demand. The geology dictates where mining can occur, so we must educate people on how blessed we are to have the mineral endowment we do but also why mining locations are where they are. Supply chain issues for critical minerals are also a concern. The US relies heavily on imports for key minerals, and geopolitical factors, like China's control over rare earth elements, significantly impact prices and availability. This underscores the need for a robust domestic mining industry to ensure a stable supply of essential minerals.
Are you optimistic about the mining industry in Arizona?
I am always optimistic about the mining industry. What impressed me most and drew me to mining is the community's deep care for each other, the environment, health, and safety. While there is still work to be done, I take pride in Arizona's rich mining heritage and the increasing public awareness of its importance. The attention mining is receiving now is crucial because our modern way of life relies heavily on mined materials.
Educating people about mining's role in the green technology transition and the production of everyday items is essential. The demand for minerals will continue to rise, and meeting this demand responsibly is critical. We need to do a better job of educating the public about the importance and sophistication of modern mining, ensuring that we balance technological advancements with environmental and community considerations. This approach will help us maintain a sustainable and thriving mining industry in Arizona.