U.S. Court of Appeals implies support for Rio's Resolution copper mine

A U.S. appeals court on Friday questioned whether it has the power to override a law of Congress that Rio Tinto (NYSE: RIO) Ltd. Allocated land in Arizona for its Resolution copper mine, which was contested by Native American people. "It would be nice if Congress or someone else made the matter more meaningful," said US District Judge Marsha Berzon when the court was likely to endorse the US government's plan to cede the land in Arizona to Rio Tinto.

Apache (Nasdaq: APA) Stronghold, a group of Native American and conservationists, had asked the US 9th Court of Appeals in San Francisco to approve a lower court ruling, which the government had allowed to give the land to Rio Tinto.

The 49-minute hearing was the latest development in the long-running conflict between members of the San Carlos Apache Tribe in Arizona, who consider the land the home of gods, and Rio and minority partner BHP Group (NYSE: BHP) Plc, who do more than $ 1 billion invested in the project without producing copper.

The demand for the red metal, which is used to make electric vehicles and other electronic devices, has increased.

An Apache Stronghold attorney said the group was optimistic the court would rule in their favor but would appeal to the US Supreme Court if lost. Rio Tinto and BHP declined to comment.

"It is really difficult and frankly dangerous to try to predict how the court will decide from the oral arguments," said Luke Goodrich, an attorney for Apache Stronghold, at a news conference in San Francisco after the hearing. "I think you will see what is right".

The judges questioned whether they have the authority to overturn a 2014 decision by former President Barack Obama and Congress that started a complex process to cede Rio state land in Arizona to the Contains more than 40 billion pounds of copper in exchange for land Rio owns nearby.

The judges of the three appellate courts are expected to deliver a verdict in the near future. Meanwhile, the US Congress is debating a bill that would reverse the 2014 legislation that allowed land transfers.

Previous court rulings have allowed the government to give away land that it owns, even if the land is considered sacred by some groups. However, the courts have also regularly ruled that the government cannot force individuals to do something that violates religious beliefs.

The Apaches have claimed that by surrendering the land to Rio Tinto, they would be forced to violate their religious beliefs as they would not be able to hold services there.

Mary Murgia, one of the three judges, challenged this argument.

"It seems like you are asking us to change this test and I'm not sure that is appropriate for this panel," Murgia said.

Goodrich, Apache Stronghold's attorney, disagreed.

"The religious practices they have been practicing there for millennia will end" when the Rio mine is built, he told the court.

Berzon said she understands the historical abuse of Native Americans but feels a legal obligation to limit deliberations to the narrow question of whether the government can do what it wants with their own land.

Joan Pepin, an attorney with the U.S. Department of Justice, told judges that Congress's decision to give the land away should override any previous agreements Washington has made with the Apaches.

"When a law and contract rights conflict, the law overrides the law," she said. US District Judge Carlos Bea asked if the conflict could be resolved through mediation. Lawyers on both sides said it was unlikely.