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News base «Madan Name“: Deep within Michigan’s forests lies copper that the U.S. desperately needs; however, there is a gulf between “having a mine” and “building a mine,” one that spans economics, the environment, and industrial policy.
In Michigan’s Upper Peninsula, or “UP,” forests stretch far and wide, and winters can lay down as much as 9 meters of snow. Wolves and northern deer roam the area, which is home to more than 80 percent of Michigan’s bears. It is a region that houses less than 3 percent of the state’s population. Yet beneath this untouched nature lies something far more industrial: copper.
The UP was built in the 19th century through mining. Cities such as Copper Harbor and Ironwood still carry names from that era. After World War II, mines employed thousands. Today, mining is more visible in museums than in the economy. Now, copper has returned—not for 19th-century telegraphs, but for electric grids, electric vehicles, military equipment, and data centers fueling the artificial intelligence economy.
In recent years, the U.S. government has made reducing dependence on critical mineral imports a core pillar of its industrial policy. Copper holds a special position within this agenda. Growing demand for power grids and data centers, coupled with supply constraints, has driven copper prices up about 60 percent over the past three years. From this perspective, the Copperwood project is more than a mine; it is a test to see whether “Made in America” can evolve beyond slogans into a real supply chain. But mining is not built on slogans.
Copperwood, owned by Highland Copper, is one of the most advanced copper projects in the U.S. and has secured most of the necessary permits. Yet it has remained at a construction standstill for years. According to current plans, construction will not begin before 2028, with production commencing around 2030. This gap reveals the project’s paradox: the U.S. needs copper; reserves exist; prices are attractive—but the mine has yet to be built.
94 Percent Waste Rock
On site, Mike Foley, the site manager, points out the land slated to become one of the largest mine tailings storage facilities. The copper ore grade at Copperwood is approximately 1.5 percent. After processing, only a small portion of the extracted material reaches smelting; about 94 percent remains as waste—a volume expected to be piled within a facility covering roughly 350 football fields. Opponents worry about the risk of tailings dam failure threatening the local ecosystem and Lake Superior. Though this risk is very low, in mining, even small risks can have significant consequences.
Mining could restore part of the lost economy, but one question remains: how many jobs? Modern mining is far more efficient than in the past and requires fewer workers. The mine’s return does not necessarily mean a return of 20th-century employment levels.
A Question Called Economics
Perhaps the greatest barrier for Copperwood is not environmental, but economic. A 1.5 percent copper grade is not particularly high compared to mines in the Democratic Republic of the Congo, where grades can reach 6 percent or more. Labor costs, construction, and infrastructure expenses in the U.S. further increase the final cost. This is where industrial policy enters mining calculations.
Michigan has sought $50 million in assistance for project infrastructure, and Highland Copper hopes to obtain a $250 million loan from the Export-Import Bank of the United States, support which could cover a large portion of the project’s financial needs. The logic of industrial policy is clear: if countries want copper supply chain security, they may have to pay part of the domestic production cost. But a tougher question arises here: what is the price of supply chain security?
The issue is bigger than Copperwood. A study by the Lawrence Berkeley National Laboratory shows that U.S. copper production, if new projects develop, could surpass 2.5 million tons per year—almost matching the country’s current import volume. For this reason, Copperwood must be seen as part of a new competition over critical minerals; a competition in which mines have become a link in industrial security, energy, technology, and trade policy. Nevertheless, the market does not wait for politicians.
Prices may remain high, but the trajectory could change. Ultimately, Copperwood reveals a simple but important truth: having sufficient reserves alone is not enough to build a mine. Permits, investment, infrastructure, technology, global prices, and social acceptance must all align simultaneously. In the Porcupine Mountains, copper still lies beneath the soil. The real challenge is not finding it; it is building an economy that justifies its extraction.
Source: The Economist