Rio Tinto CEO seeks "win-win" for Resolution Copper Project

This week, a leading Native American leader in Arizona refused to meet with the chief executive of Rio Tinto, the latest hurdle in the mining giant's search for a "win-win" decision to build its controversial copper project.

Rio's CEO Jakob Stausholm visit to the state highlights the importance of Resolution to the Anglo-Australian company, which has spent more than $2 billion on the project over the past decade but has not yet produced any copper metal for electric cars and other electronics.

Rio Tinto hopes the mine will eventually produce more than 40 billion pounds of copper. First, it must win approval from the San Carlos Apache tribe, an unlikely prospect, as Chairman Terry Rambler and other tribal leaders have long said that their opposition is religious and cannot be mitigated by economic incentives.

Stausholm, who visited Arizona for the first time since becoming chief executive in January, said he hoped the two sides would reach an agreement to allow the project to continue.

A bill under consideration in the US Congress would repeal legislation approving land transfers in 2014, which would allow Rio Tinto to acquire copper deposits.

"We are trying to find a win-win situation," Stausholm said in a video interview on Wednesday in Phoenix, the state capital. I do think it's in everyone's interest. But I think we still have work to do. "

The complex debate heralds the coming land war, as the goal of the United States is to build more electric cars, which use twice as much copper as cars with internal combustion engines. Resolution mines can meet about 25 per cent of projected US demand for the metal.

The Arizona dispute centers on Oak Flat Campground, San Carlos Apache's belief that this is the home of the gods. The underground mine will form a crater that will engulf the site.

U.S. president Joe Biden (Joe Biden) received important support from San Carlos Apache during the presidential campaign, who put the project on hold in March.

Stausholm said he tried to meet with Rambler during a visit to Arizona, but failed. Rambler said he would rather spend time lobbying Congress to block land transfers.

"if they want to meet, they should meet before they do anything in 2014," Rambler said. "my focus now is to change that law."

The two sides disagreed on how and when to negotiate. Rambler and other Native American leaders said the appropriate time for negotiations was 2014, but Stausholm said he thought the process had only just begun.

"only when the community really understands, if they think we are transparent, can the community feel comfortable," Stausholm said.

Stausholm declined to say whether Rio Tinto would eventually withdraw from the project, but acknowledged that the company needed tribal consent.

"the first stage is dialogue," Stausholm said. "that's why I put myself in Arizona. I can't draw any conclusions right now."

Stausholm hinted that the mine's design plans might change to make it more attractive to Native Americans, but declined to specify. "We have to find out what the pressure point is through dialogue."

Stausholm added that Rio Tinto would smelt any copper produced in mines in the US. Opponents say they are concerned that Rio Tinto will export copper for use in China or other countries.

BHP Billiton, a minority partner in the project, has not commented.