Michael Fox interviews Adam Hawkins, President of Global External, about the Trump administration’s proposed 50% tariff on copper imports and its implications for the U.S. mining industry. Adam explains that Global External specializes in helping mining companies navigate above-ground risks, including social, political, and regulatory challenges during project acquisition and development.

They discuss the administration’s goal of boosting domestic copper production to reduce dependence on countries like China, which controls a large share of global smelting and engages in aggressive trade practices.

Adam highlights the complexity of expanding hard rock mining in the U.S., emphasizing the multiple obstacles such as labor shortages, lengthy permitting processes, environmental regulations, and intricate supply chains. Adam expresses concern that the 50% tariff on imported copper, while intended to challenge Chinese dominance and incentivize U.S. production, could inadvertently harm low-margin domestic mining operations and result in job losses. Both Adam and Michael agree that tariffs alone cannot solve deep-rooted structural and economic issues.

They also examine challenges related to building modern, environmentally compliant smelting facilities in the U.S. Adam criticizes the overly complex National Environmental Policy Act (NEPA) and legal challenges enabled by the Equal Access to Justice Act, which often stall projects through costly litigation. He contrasts this with Canada’s more streamlined environmental review and litigation environment.

Regarding hard rock mining investments, Adam underscores the need for a stable tenure system due to large capital requirements and notes that while the current environment is difficult, the U.S. remains attractive for foreign direct investment. They mention ongoing efforts by lawmakers to streamline permitting but recognize more work is needed for meaningful reform. In terms of U.S. policy, Adam discusses the difficulty of aligning short-term political cycles with long-term strategic goals needed to counter China’s multi-decade planning around metal supply chains. They reflect on the growing demand for copper driven by technologies like AI and electric vehicles and the importance of long-term projects such as Resolution Copper, which Adam has been involved with for decades.

Finally, they address the time-intensive nature of developing domestic mining capacity, emphasizing that even with federal support, new facilities require years to come online. Adam stresses that reshoring copper production need not compromise human rights if focused on stable countries like the U.S., Canada, and Australia. They agree on the critical role of domestic mining in creating middle-class jobs and the importance of educating policymakers on the complexities and benefits of domestic mineral production.

This interview provides a comprehensive look at the challenges and nuances behind the administration’s copper tariff proposal and the broader efforts to revitalize U.S. copper mining and smelting amid global trade pressures.