With high copper prices and rising demand from data centers, mining companies are attempting "bacterial copper extraction" technology

Copper prices have set new records, and the expectation of an expanding supply-demand gap is pushing mining companies toward a more realistic production increase path. From waste rock piles and old mines to "bioleaching" (accelerating chemical leaching through the addition of microorganisms), technology is turning copper that was previously "unminable" into new supply.

Against the backdrop of copper prices standing above $13,000 per ton, companies such as BHP, Rio Tinto, Freeport-McMoRan, and Vale are researching and deploying new methods to recover copper metal from abandoned or inactive mining areas, as well as from previously considered too difficult-to-utilize low-grade materials.

Among them, Rio Tinto's bioleaching technology has produced copper at an industrial scale and successfully secured AWS as its first customer, with the copper to be used in its data centers in the United States.

For the market, the core significance of these technological routes lies in faster incremental production and lighter capital expenditures, providing new supply increments to the market in the reality of long new mine development cycles.

High Copper Prices and Supply-Demand Gap Drive Mining Companies to Shift to "Waste Material Production Increase"

Copper is widely used in home appliances, cables, and power grid infrastructure, as well as in data centers that will support the AI boom. At the current pace, market demand is expected to significantly exceed supply by 2030. Coupled with supply disruptions caused by major mining accidents, London copper prices have repeatedly set new highs since last October.

However, the high costs and long cycles of new mine development lead mining companies to prefer producing more copper from existing assets, including reassessing the economics and extractability of old mines, waste rock piles, and low-grade ore piles.

"Leaching" Becomes a Key Tool, Stockpiled Materials Viewed as Alternatives to New Mines

Mining companies are strengthening the application of leaching technology, which involves adding acidic solutions to ore to separate copper from other minerals. With improvements in technology and economics, using leaching in waste piles and old low-grade materials has become more attractive.

Freeport's CEO Kathleen Quirk stated that new leaching technology could contribute about two-thirds of the company's copper production growth in the U.S. by 2030, and that the production increase effect after deployment in its U.S. mining areas is equivalent to a large new mine. She also mentioned that today's technology can locate the distribution of copper within these stockpiles, thereby enhancing recovery efficiency.

In Arizona, BHP is also assessing whether it can extract copper from layers of waste material that total tens of thousands of tons. BHP's Chief Technology Officer Johan van Jaarsveld stated that old mining areas are expected to become an important additional source of copper when demand surges and supply tightens.

Rio Tinto Advances "Bioleaching," AWS Becomes First Customer

Rio Tinto announced last December that it had achieved industrial-scale copper production using its microbial method for the first time. This method was developed by its Nuton business and has been promoted since the 1990s by cultivating microorganisms in bioreactors and adding them to crushed ore piles to accelerate chemical reactions during the leaching process and improve efficiency.

This month, Rio Tinto stated that Amazon AWS would become Nuton's first customer, with the related copper to be used in its data centers in the United States. Nuton's Chief Technology Officer Harald Muller noted that these "bacteria" occur naturally but have been cultivated and selected over the past 30 years to adapt to specific working conditions Katie Jackson, head of Rio Tinto's copper business, stated that this technology could become a "game changer" for the industry, with strong market interest.

Mergers and Acquisitions and Policy Initiatives Working in Tandem, the Industry is Racing Against Time and Resources

Stimulated by record copper prices, some global mining giants are ramping up deals to expand their copper businesses. This month, Rio Tinto and Glencore confirmed the resumption of negotiations regarding potential transactions, aiming to create the world's largest mining company.

Previously, Anglo American and Teck Resources reached a $60 billion combination deal last year.

On the policy front, the U.S. government has instructed relevant agencies to map the distribution of domestic mine waste and take measures to simplify its utilization process. In July, the U.S. Department of the Interior stated that critical minerals are significantly present in national mine waste, and the U.S. has a resource base to reduce import dependence domestically.

For investors, this means that "waste recycling" is not just a cost and technology choice at the corporate level, but also receives clearer policy support and implementation pathways