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How Halting Penny Production Could Reshape Natural Resource Policies

In February 2025, President Donald Trump announced on X that the U.S. Treasury is halting new penny production, citing the cost to produce the 1-cent coin exceeds its face value by more than double. From a legal and regulatory standpoint, what does it mean to stop the production of a metal-based currency?

Micheline N. Fairbank, a Fennemore attorney specializing in natural-resources law, shares her perspective on the implications of such a move for mining regulations, resource management trends, and the businesses that depend on them.

From a legal standpoint, what are the implications of reducing or halting the production of currency that relies on mined materials?

Reducing or halting coin production could have cost and value implications for those metals.

There may also be legal implications, as widespread cessation of metal coin production in the United States and elsewhere could result in a cascade of regulatory considerations. For example, many mining licenses and permits require operators to meet ongoing production targets; significant changes in production levels might require mining companies to seek modifications to their permits. For mines nearing the end of their operational life, decreased demand and production could accelerate closure timelines and reclamation responsibilities. Contractual relationships with suppliers and consumers could also be impacted if reduced operational needs lead to non-performance risks and challenges in fulfilling existing agreements.

How might changes in demand for metals like copper and zinc impact mining regulations or policies?

Electricity and the metals used to conduct it are becoming increasingly in demand, especially as nations worldwide transition toward greener technologies. Fortunately, the reliance on copper for penny production in the United States accounts for a very small fraction of total copper output. In 2022, the United States produced 1.3 million metric tons, and worldwide production was approximately 27.6261 million metric tons. By comparison, the U.S. Mint used only about 198 metric tons of copper in 2024 to produce 3.2 billion pennies, a number that has been steadily decreasing in recent years.

Since 1982, the penny has been composed of 97.5% zinc, which requires approximately 7,800 metric tons of zinc annually. This is about 10% of the United States’ total 2023 zinc production, which was roughly 780,000 metric tons. Globally, zinc production was nearly 12.3 million metric tons that same year.

Therefore, if the United States ceases production of pennies, it is unlikely to have a significant impact on mining and metal supplies, as demands in other sectors, including construction and electronics, continue to grow.

Does this shift reflect legal or regulatory trends in how the U.S. approaches natural resource management?

The United States has consistently advanced resource management policies focused on environmental sustainability, community engagement, and national security. The current administration’s efforts to eliminate penny production do not necessarily reflect a shift in resource management principles but are primarily driven by economic considerations.

For many years, the production of pennies and other coins has been criticized due to the high costs compared to their face value. Additionally, reliance on mineral extraction has faced scrutiny because of the environmental impacts associated with mining. The minting process itself is energy-intensive and contributes to a significant carbon footprint through the production and transportation of coins.

However, reducing or eliminating penny production—and potentially other coins—can help free up supplies of copper and other critical minerals, which has been a priority for current and previous administrations.

Are there environmental, economic, or geopolitical considerations tied to this issue that businesses in the mining or resource sectors should be aware of?

Historically, mining undergoes “boom and bust” cycles that can significantly impact operations. Existing mines may experience substantial changes requiring review and active management of their projects and permits to ensure compliance with federal and state regulations. Additionally, volatile markets, supply chain disruptions, and policy shifts can have major effects on employment, regional economies, and business profitability.

The global shift toward increased electrification and a green economy is intensifying efforts by countries, including the United States, to secure control over critical minerals and their exports.

As these pressures grow amid tariffs and international restrictions, there is an increasing emphasis on domestic production. However, expanding or developing mining operations domestically necessitates proactive planning to comply with all relevant regulations, not only environmental standards but also safety, labor, and other legal requirements.

How does your team at Fennemore help clients navigate legal challenges or shifts in policy tied to natural resources?

We specialize in guiding clients through the complex legal landscape of natural resources. We continuously monitor developments at both the federal and state levels to provide proactive, timely advice. Our team offers strategic counsel on compliance with evolving regulations, interpretation of permitting requirements, and risk management for resource-based projects. We strive to help clients adapt proactively to policy changes, advocate for fair regulations, and sustain responsible operations.

We also assist in designing contractual frameworks to mitigate legal risks associated with fluctuating demand and supply. Our experts advise on environmental law compliance and facilitate engagement with policymakers to influence regulations that support our clients’ strategic goals. With a multidisciplinary approach, we ensure clients remain agile and well-informed in a rapidly changing policy environment.


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