By Ernest Scheyder

(Reuters) -A key Native American leader in Arizona declined to meet Rio Tinto (NYSE:) Plc’s chief executive this week, the latest roadblock in the mining giant’s search for a “win-win” compromise to build its controversial Resolution Copper project.

Rio’s Jakob Stausholm visited the state to highlight Resolution’s significance to the Anglo Australian company. The mining giant has already spent over $2 billion to build the project, but it has not produced any copper, the metal that is used in electronic vehicles.

Rio believes the mine will produce over 40 billion pounds copper. It must first win the approval of San Carlos Apache (NASDAQ;). This is unlikely as chairman Terry Rambler, and other tribal leaders, have always stated that religious objections are what keep them from moving forward with economic incentives.

Stausholm visited Arizona for the first time since January as CEO.

We’re looking for a win-win. It’s good for everyone. However, I believe that there is still work to be done,” Stausholm said in a video interview with Reuters on Wednesday. He spoke from Phoenix as the capital of Arizona.

We need to be more clear about ourselves if we aren’t able to adequately explain who we are.

As the United States aims at building more EVs (electric vehicles) than internal combustion engine cars, this complex debate could be a warning sign for future land conflicts. According to the Resolution mine, it could supply 25% of U.S. metal demand.

Oak Flat Campground in Arizona is where the Arizona dispute center. It’s considered sacred ground by San Carlos Apache deities. Underground mining would create a massive crater which would swallow the area.

In March, U.S. President Joe Biden put the project on hold temporarily. He received criticism from San Carlos Apache for his presidential bid.

Unfinished legislation in the U.S. Congress will undo the 2014 law that allowed Rio to have access to the copper deposit.

Stausholm claimed he attempted unsuccessfully to meet Rambler in Arizona during his Arizona trip. Rambler stated to Reuters that he prefers spending his time lobbying Congress against the land transfer.

Rambler claimed that “if they really wanted to meet” they should have had a meeting in 2014 before any action was taken. My focus is now on changing the law.”

WHEN TO TAKE ACTION?

There is disagreement between the two sides about when and how they should negotiate. While Rambler, along with other Native American leaders, stated that the right time to consult was 2014; Stausholm indicated that he believes this process is just beginning.

Stausholm is a Danish-trained accountant who has previously worked at Royal Dutch Shell (LON) and shipping giant Maersk.

Stausholm refused to comment on whether Rio would be able to walk away, but he said that the company still wants the tribal agreement.

He stated that dialogue is the first step and that’s why he was putting himself here in Arizona. “You cannot conclude anything at the moment.”

Stausholm said that it was possible for the mine’s design to change in a way that would be more acceptable to Native Americans. He declined to say what changes. “We must have the dialogue to find the pressure points,” he stated.

Stausholm stated that Rio will smelt all copper mined in the United States. Opponents fear Rio could export copper for China or other countries.

BHP, a minor partner in this project, wasn’t immediately available for comment.