US Mining and Energy Extraction Sector NAICS 21

Feb 14, 2026 - Copper Merger Collapses

• Failed merger talks between Rio Tinto and Glencore underscores the challenge facing mining companies as they vie for dominance in copper, a metal essential to powering artificial intelligence and electric cars, The Wall Street Journal reports. With copper demand expected to rise 70% by 2050, miners face intense global competition for high‑quality deposits. The collapse of negotiations underscores how high copper prices, geopolitical risk, and regulatory complexity are raising the bar for megadeals, pushing companies toward smaller asset acquisitions and partnerships instead. For the US, this matters: Rio Tinto controls the Kennecott mine in Utah and is developing a major Arizona project that could eventually supply a quarter of domestic copper demand. As large mergers stall, securing future supply will depend on permitting reform, capital investment, and strategic alliances. The merger’s failure signals that consolidation alone won’t solve the US copper shortfall in the energy‑transition era.
• Cheap gasoline is good for consumers, but it comes at a cost to oil-producing regions such as West Texas and North Dakota, which are already suffering from layoffs, slowing growth, and reduced capital spending, The Wall Street Journal reports. Crude prices have fallen to the mid‑$50s per barrel, dangerously close to break‑even levels for many producers. Additional supply from Venezuela, supported by US investment and the release of up to 50 million barrels into global markets, would further depress prices and intensify pressure on domestic drillers. The Federal Reserve notes that low price expectations are keeping a lid on drilling investment in Texas. Smaller independent producers are especially vulnerable: many must pause projects or halt exploration when prices fall below key thresholds. Continued price declines would ripple through the supply chain, hurting drilling contractors, fracking service firms, and equipment providers.

• Surging demand from data centers, AI infrastructure, and electric vehicles is tightening the global copper supply, while mine disruptions in Indonesia and Chile highlight growing production risks, causing prices to soar, Reuters reports. Copper prices above $13,000 per metric ton in January signal both opportunity and pressure for the US mining industry. Analysts note that many existing mines worldwide are operating beyond capacity, underscoring the need for new US copper projects. But developing the next generation of mines requires prices at or above current record levels to justify investment, according to Reuters. Geopolitical instability amid broader concerns about critical‑mineral security, adds urgency to securing domestic and allied supply chains. Meanwhile, potential tariffs on US copper imports have temporarily inflated inventories but not solving long‑term shortages. For US miners, the environment points to rising strategic importance, stronger incentives for exploration, and heightened competition for reliable copper sources.
• Producer prices for all mining industries fell 1% in November compared to a year ago after falling 5.3% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices have declined sharply from their high in mid-2022. Short-term market weakness for certain mined commodities, including thermal coal, lithium, platinum and palladium, and an oversupply of certain key minerals are putting downward pressure on producer prices. Employment by the mining and energy extraction sector shrank 2.2% year over year in December, while average sector wages rose 4.3% YoY in November to $38.27 per hour, $0.10 shy of their peak in February 2025, BLS data show.