Rio Tinto is investing in its Kennecott operation to boost copper supply in the US by expanding underground mining production and enhancing the health of key assets.
A total of $498 million has been granted for underground development and infrastructure in the North Rim Skarn (NRS). The NRS will begin production in 2024 and is scheduled to ramp up over the next two years, delivering about 250 thousand tonnes of extra mined copper alongside open cut operations over the next ten years.
Rio Tinto allocated $55 million in development financing in September 2022 to begin underground mining in the Lower Commercial Skarn (LCS). Underground production at LCS began in February 2023 and is projected to yield around 30 thousand tonnes of extra mined copper by 2027.
Following a successful trial in 2022, these two investments will help Kennecott create a world-class underground mine that will use battery electric vehicle (BEV) technology. According to Rio Tinto, BEVs make the underground workplace safer and healthier for employees, boost mining production, and reduce pollutants from operations.
The Kennecott smelter is also undergoing a $300 million rebuilding. The rebuild, which is the largest in Kennecott history, began in May 2023. An additional $120 million will be invested to improve the refinery tank house construction and to replace Kennecott’s molybdenum flotation circuit with cutting-edge, fully automated technology. As the second biggest copper producer in the US, Kennecott will be able to continue providing high-quality products to consumers.
“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. This investment will position Kennecott to continue the strong contribution it has made as part of the Salt Lake Valley community for 120 years, injecting about $1.5 billion annually to the local Utah economy,” Rio Tinto Copper chief operating officer Clayton Walker said.
Studies to assist the decisions on the next phases of growing underground production are ongoing in parallel with efforts to extend open pit mining at Kennecott beyond 2032.
