The significance of copper in the defense sector has become increasingly evident. This essential metal, a cornerstone of military technology, is crucial for maintaining the efficacy of existing defense systems and advancing future capabilities. Amid increasing military production, particularly in the US, investing in domestic copper production has never been more critical.
To this end, the smart money is looking to US-based copper projects such as Freeport’s (NYSE: FCX) Morenci Mine and Safford Mine located in Arizona, Rio Tinto’s Kennecott Copper in Utah (LSE:RIO), and Idaho Copper’s CuMo project (OTC: COPR) in Idaho, and the rest of us would do well to sit up and take notice.
Copper: A traditional military metal
Copper has long been recognized for its unique properties that make it invaluable in military applications. Its resistance to corrosion, high electrical and thermal conductivity, and malleability have cemented its status as a traditional military metal. The U.S. Department of Defense (DoD) has relied heavily on copper for a multitude of applications, ranging from aircraft components to advanced communication systems.
Military vehicles such as aircraft, naval vessels, and coast guard ships extensively use copper due to its ability to resist corrosion, ensuring durability and longevity. Additionally, copper alloys, when combined with metals like nickel and lead, are used to produce military gear and body armor capable of withstanding significant impact and degradation. This makes copper not only a traditional but also an indispensable material in defense manufacturing.
Increased demand in defense production
The demand for copper in the defense sector continues to grow significantly. The ongoing modernization of military equipment and the need to replenish and upgrade defense systems are major driving factors. This increase in demand requires a robust and reliable supply of copper to support the development and production of various military applications.
In 2017, the U.S. military used 750,000 tons of minerals for various defense applications. The importance of copper in this context is underscored by its extensive use in munitions, vehicles, and communication systems. As defense technology evolves, the need for copper continues to expand, highlighting its critical role in ensuring the readiness and effectiveness of military forces.
Risks to supply chains
The increased demand for copper is set against a backdrop of significant supply chain vulnerabilities. The U.S. faces a high level of import dependence for critical minerals, including copper. This dependence poses risks of supply disruptions, particularly as global supply chains can be subject to various challenges and uncertainties.
The U.S. military’s historical reliance on copper is further complicated by these supply chain issues. According to a report by the Institute for Defense Analyses, a peacetime supply disruption scenario could result in a copper shortage critical for defense needs. This underscores the urgency of securing a stable and resilient supply chain for copper.
Idaho Copper Corp. recognizes the importance of investing in domestic copper production
To mitigate these risks and ensure a steady supply of copper, significant investments in domestic copper production are essential. The U.S. has been taking steps to bolster its mineral supply chain through initiatives like the Defense Production Act, which has historically been used to support domestic mining projects. Recent investments include financing for copper exploration and expanding mining operations to ensure a reliable supply of this critical metal.
Investing in prospective U.S. copper players is a strategic move that can provide the necessary capital to develop and expand mining operations. These investments not only enhance national security by reducing dependency on foreign sources but also stimulate economic growth and job creation within the country.
The scale and potential of Rio Tinto and Freeport McMoran is well documented. These firms boast the largest copper mines in the US, and this is already reflected in their share prices, which have increased by 31% over the last five years and 409% respectively.
Then there are companies like Idaho Copper that are less well known but significant in ensuring the continued health of the US copper supply chain.
The latest information on Idaho Copper
Idaho Copper is currently exploring the CuMo project in Idaho, a tier-1 jurisdiction with mining-friendly policies and a substantial workforce.
CuMo is a large-scale operation in the PEA stage. The company boasts significant resources of over 4 billion pounds of copper, 1.6 billion pounds of molybdenum, and 180 million ounces of silver in measured and indicated resources, showing immense potential.
Idaho Copper’s next milestone is to deliver a revised PEA showing a significant improvement on the company’s last NPV estimate of $356 million over a 30-year life of mine.
The company is employing the latest technology to sort its ore with the aim of reducing the overall operating costs and improving the mineable grade. In April, the company revealed its technology partner, Veracio, and that it had started analysis of over 60,000 feet of drill cores held in the company’s warehouse, collected over the past twenty years.
The strategic role of copper in future military applications
As the military transitions to more advanced technologies, the role of copper is set to become even more critical. Modern platforms such as electric vehicles, advanced communication systems, and next-generation weaponry all require significant amounts of copper. For instance, the F-35 fighter jet’s airframe is composed of about 40% aluminum, with copper playing a crucial role in its electrical systems. Similarly, lithium-ion batteries, which power an increasing number of military vehicles and equipment, rely heavily on copper for their efficiency and performance.
The shift towards renewable energy and green technologies also drives up the demand for copper. As countries accelerate their green initiatives, the military sector must also adapt, integrating more sustainable practices without compromising on efficiency or security. This transition further underscores the importance of securing a stable copper supply.
A call to action
In conclusion, the strategic importance of copper in the defense sector cannot be overstated. Amid rising military production, ensuring a steady and secure supply of this critical mineral is paramount. Investing in domestic copper production not only enhances national security but also supports economic growth and resilience.
As the landscape continues to evolve, the need for copper in military applications will only grow. By investing in domestic copper players such as Idaho Copper (OTC: COPR) and securing the supply chain, the U.S. can ensure that its defense capabilities remain robust and ready to meet any challenges that lie ahead. Investing in copper is not just a matter of economic interest but a strategic imperative for national security.
