- AI data centers are projected to consume more than 4 million tonnes of copper by 2035, intensifying a looming global shortfall
- Trilogy Metals owns a 50% stake in Alaska’s Upper Kobuk Mineral Projects (“UKMP”), among North America’s richest undeveloped copper districts
- The company is advancing the Arctic and Bornite deposits, which together could underpin decades of future production
AI and the Next Phase of Copper Demand
Copper’s importance has been well established in renewable energy, EVs, and grid modernization. Now artificial intelligence is emerging as a powerful new driver. Data centers powering AI workloads require immense amounts of copper for power distribution, thermal regulation, and efficient conductivity. Bloomberg analysts estimate the sector could need more than 400,000 tonnes of copper annually through the next decade, with cumulative usage topping 4 million tonnes by 2035.
This growing consumption comes at a time when copper supply growth is lagging. Many existing mines face declining grades, while new projects can take a decade or longer to reach production. Against this backdrop, high-grade resources in stable jurisdictions are drawing increased attention.
Trilogy Metals and the Ambler Mining District
Trilogy Metals (NYSE American: TMQ) (TSX: TMQ) sits at the center of this dynamic. Through Ambler Metals LLC, its 50/50 joint venture with South32, Trilogy controls the Upper Kobuk Mineral Projects in Alaska’s Ambler Mining District. The district hosts volcanogenic massive sulphide (“VMS”) and carbonate replacement deposits containing copper, zinc, lead, gold, silver, and cobalt.
The flagship Arctic deposit contains probable reserves of 46.7 million tonnes grading 2.11% copper, 2.9% zinc, 0.56% lead, 0.42 g/t gold, and 31.8 g/t silver. A 2023 feasibility study outlined robust economics, with a pre-tax NPV of $1.5 billion and an after-tax IRR of 22.8%. The Bornite project, with an inferred resource of 6.5 billion pounds of copper, could extend the district’s mine life beyond 30 years. A January 2025 preliminary economic assessment pegged Bornite’s pre-tax NPV at $552 million and after-tax IRR of 20.0%.
Partnerships and Infrastructure Support
Remote Arctic projects require more than mineral potential. Trilogy has structured strong partnerships to advance development:
- South32: The global mining major invested $145 million to form the Ambler Metals JV with Trilogy, providing capital and technical expertise
- NANA Regional Corporation: Representing 14,000 Iñupiat shareholders, NANA’s agreement with Trilogy reflects decades of mining partnership experience, including Teck’s Red Dog Mine
- State of Alaska: The proposed Ambler Access Road, a 211-mile corridor connecting the district to highways and ports, remains central to development. Recent executive orders have renewed federal and state momentum to advance this infrastructure
Financial Positioning
As of May 2025, Trilogy held $25 million in cash and no debt, along with a 50% share of cash in the joint venture. The company also maintains a $50 million base shelf prospectus and a $25 million at-the-market program, giving it flexibility to raise funds for project advancement while preserving balance sheet strength.
Critical Minerals and National Strategy
Beyond copper, the Ambler Mining District is also a source of cobalt, zinc, and germanium—materials identified by the U.S. Department of Energy as critical for national security and advanced technologies. This positions Trilogy’s assets as part of a broader supply chain strategy, particularly as the U.S. seeks to reduce reliance on foreign sources of key minerals.
Conclusion
AI-driven data centers, combined with renewable energy and electrification, are reshaping copper’s demand profile. With a 50% stake in one of North America’s most prospective copper districts, Trilogy Metals is well positioned to benefit. Its high-grade deposits, strong partnerships, and supportive policy environment provide a foundation to meet the challenges of a tightening copper market. As the global shortfall looms, projects like Arctic and Bornite could play a vital role in securing future supply.
For more information, visit www.TrilogyMetals.com.
NOTE TO INVESTORS: The latest news and updates relating to TMQ are available in the company’s newsroom at ibn.fm/TMQ
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