Rio Tinto invests $1.5bn in US copper mine
Global mining company Rio Tinto announced a $1.5-billion investment in copper in December, with CEO Jean-Sébastien Jacques describing the outlook for the metal as attractive.
The investment will keep the Kennecott operation, in the US, in production until at least 2032.
Rio Tinto explained that it would extend strip waste rock mining and support additional infrastructure development in the second phase of the South Wall Pushback project to allow mining to continue into a new area of the orebody.
The “world-class project” would deliver close to one-million tonnes of refined copper between 2026 and 2032, the miner said in its announcement.
The first phase of the South Wall Pushback, which is expected to be completed in 2021, extended production from 2019 to 2026.
“The outlook for copper is attractive, with strong growth in demand driven by its use in electric vehicles and renewable power technologies, and declining grades and closures at existing mines impacting on supply,” said Jacques.
The additional investment would start next year and was included in the group capital expenditure guidance of $7-billion in 2020 and $6.5-billion in both 2021 and 2022 as development capital.
With this project, Rio Tinto has invested more than $5-billion in modernisation, environmental stewardship and mine-life extension initiatives since it acquired Kennecott in 1989.
“Kennecott is uniquely positioned to meet strong demand in the US and delivers almost 20% of the country’s copper production. North American manufacturers have relied on high-quality products from Kennecott for the past century and this investment means it will continue to be a source of essential materials into the next decade.”
Earlier this year, Rio Tinto announced that it would cut the carbon footprint of its operations at Kennecott by permanently closing its coal-fired power plant and sourcing renewable-energy certificates.
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