Amazon.com has signed an agreement with Rio Tinto to acquire the first new U.S. copper production in more than a decade.
The US online retailer relies on a mine in Arizona – the Nuton project – to cover the enormous demand for industrial metals in its data centers. The mine came online last year as the first new source of copper in the U.S. in more than a decade.
Rio Tinto has signed a two-year supply agreement with Amazon Web Services (AWS). The copper will be delivered to companies that produce components for Amazon’s data centers, according to Amazon Director Chris Roe. As part of the agreement, Amazon will provide the mining company with cloud computing and data analytics. This is intended to optimize Nuton’s recovery rates and support Rio Tinto’s production expansion.
The resumption of mining operations served as a testing ground for a new process by Rio Tinto to develop low-grade copper deposits. As part of the Nuton project, the mining company is using bacteria and acid to extract copper from ore that was previously considered uneconomical to process.
Amazon’s move is the latest example of a technology company securing access to energy and critical materials needed to build and operate artificial intelligence (AI) data centers. However, the Nuton copper will only meet a small portion of Amazon’s needs. The largest data centers each require tens of thousands of tons of copper for cables, busbars, circuit boards, transformers and other electrical components. The 14,000 tons of copper cathodes that Rio Tinto expects from the Nuton project in Arizona over four years would not be enough for a single one of these plants.
This is how Amazon and Rio Tinto shares react
Amazon shares ended Friday trading on the NASDAQ 0.39 percent higher at $239.12. Meanwhile, Rio Tinto shares in London closed down 1.87 percent to 63.47 pounds. Sydney-listed Rio Tinto Ltd. shares rose 0.71 percent to A$148.25 on Friday.
By Ryan December
DOW JONES
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