 | Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
(Kitco News) - Rio Tinto announced today it is investing in its Kennecott operation near Salt Lake City, Utah, to strengthen its supply of copper in the United States by increasing production from underground mining and improving the health of key assets.
In a press release, the company said $498 million in funding has been approved to deliver underground development and infrastructure for an area known as the North Rim Skarn (NRS).
Production from the NRS will commence in 2024 and is expected to ramp up over two years, to deliver around 250 thousand tonnes of additional mined copper over the next 10 years alongside open cut operations.
Rio Tinto also noted that in September 2022, the company approved development capital totalling $55 million to start underground mining in an area known as the Lower Commercial Skarn (LCS).
Underground production within LCS started in February 2023, and is expected to deliver a total of around 30 thousand tonnes of additional mined copper through the period to 2027.
"These two investments will support Kennecott in building a world class underground mine which will leverage battery electric vehicle (BEV) technology, following a successful trial in 2022. BEV's create a safer and healthier workplace for employees underground, increase the productivity of the mine and reduce emissions from operations," the company said.
Rio Tinto added that a $300 million rebuild is also underway at the Kennecott smelter. The rebuild is the largest in Kennecott's history and commenced in May 2023.
A further $120 million is being invested to upgrade the refinery tank house structure and update Kennecott's molybdenum flotation circuit with a state-of-the art, fully automated system.
Rio Tinto Copper chief operating officer Clayton Walker commented, "We are investing to build a world class underground mine at Kennecott and strengthen our processing facilities, to meet the growing demand for copper in the United States, a key material for domestic manufacturing and the energy transition."
|
| Newmont defers investment decision for Yanacocha Sulfides project, focusing on portfolio optimization |
