President Donald Trump on Friday reversed an air pollution regulation introduced during the Biden administration. The rule, which was aimed at reducing emissions from copper smelters, has been overturned, providing a two-year compliance exemption for affected stationary sources.
Two-Year Exemption for Copper Smelters
The Biden administration rule finalized in May 2024 introduced tighter emission limits for copper smelters — covering pollutants such as lead, arsenic, mercury, benzene, and dioxins — under revised federal air quality standards.
The regulatory exemption grants affected facilities a 2-year grace period starting from the October 2025 announcement. This effectively delays compliance until 2027, allowing smelting operations to continue without implementing the newly required emission controls during that time.
The exemption applies to what regulators define as "affected stationary sources," covering the specialized equipment and processes involved in copper smelting.
According to the White House, the move is intended to ease regulatory burdens on domestic copper producers and strengthen American mineral security.
The proclamation specifically affects the two copper smelters in the United States, operated by Freeport-McMoRan (NYSE:FCX) in Arizona and London-based Rio Tinto (NYSE:RIO) in Utah. The exemption will apply to Freeport’s smelter, which is mentioned in the proclamation.
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Copper Prices In Focus Amid Trump’s Move
The decision comes at a time when the global copper market is transitioning from surplus to shortage. Earlier this month, The International Copper Study Group (ICSG) projected that a 178,000-ton surplus for 2025 could flip to a 150,000-ton deficit as supply struggles to keep pace with demand.
Earlier in July, Trump’s unexpected tariffs on copper designating it as a “critical material essential to the national security, economic strength, and industrial resilience” of the U.S. sparked the best copper rally in a decade, with copper prices as tracked by the United States Copper Index Fund (NYSE:CPER) spiking to a new record high of $5.85 per pound. The recent move to ease restrictions on copper smelters could potentially impact the copper market dynamics further. The price of copper stands at $5.18 per pound when last checked on Monday. At the same time, the United States Copper Index Fund surged 24.76% on a year-to-date basis, as per data from Benzinga Pro.
Furthermore, Freeport-McMoRan reported better-than-expected third-quarter FY25 results, with revenue standing at $6.97 billion, beating the consensus of $6.71 billion. The decision to ease emission restrictions could further bolster the company’s growth prospects.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
