Jan 15 (Reuters) - Rio Tinto said on Thursday it
would supply copper that it leaches from an Arizona mine to
Amazon.com ( AMZN ) 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 ( FCX ), 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.