Jan 15 (Reuters) – Rio Tinto said on Thursday it would supply copper that it leaches from an Arizona mine to Amazon.com for use in the tech giant’s artificial intelligence data centers.
The move underscores the rampant push by the AI industry for access to supplies of copper and other critical minerals that are used to build wiring, cables, circuit boards and other electronic parts.
AI sector growth is expected to boost global copper demand 50% by 2040, although analysts have warned supplies could fall far short, sparking a rush to ensure access.
Under the two-year agreement, companies that build parts for Amazon Web Services will use copper produced by Rio’s Nuton leaching program from a mine owned by Gunnison Copper.
The companies did not disclose financial terms or production volumes. Rio did not immediately respond to a Reuters request for comment.
The Nuton technology uses bacteria that naturally produces heat when applied to certain types of rock, helping to extract copper.
Rio has been studying leaching for more than 30 years. It named the leaching program “Nuton” after the 17th-century British scientist Isaac Newton, who first developed the theory of gravity.
Freeport-McMoRan, the largest U.S. copper producer, has been using leach technology for years. It leached roughly 300 million pounds of copper last year and expects to leach 800 million pounds annually by 2030.
Copper prices have climbed above $13,000 a metric ton on the London Metal Exchange — a 40% increase in the past year — as expectations of surging demand from AI-powered data centres collide with tight global supplies.
Valued for its high electrical conductivity, copper is essential for power grids, electric vehicles and infrastructure critical to the energy transition.
(Reporting by Yagnoseni Das in Bengaluru and Ernest Scheyder in Houston; Editing by Alan Barona)
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