3rd Dec 2019 16:30
(Alliance News) - Anglo-Australian miner Rio Tinto PLC said it will invest USD1.5 billion extending the life of the Kennecott copper project to 2032.
Kennecott is located outside Salt Lake City in Utah, with mining having taken place there for over a century. Operations there include the Bingham Canyon mine, the Copperton concentrator, and the Garfield smelter.
The investment, Rio Tinto said, with allow mining to continue into a new area of the ore body, adding close to one million tonnes of copper production between 2026 and 2032. Investment will begin in 2020, Rio Tinto added, and is included in 2020 capital expenditure guidance of USD7.0 billion.
Chief Executive Jean-Sebastien Jacques commented: "This is an attractive, high value and low risk investment that will ensure Kennecott produces copper and other critical materials to at least 2032.
"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 supply."
"Kennecott is uniquely positioned to meet strong demand in the United States 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," Jacques continued.
This latest investment into Kennecott comes just a week after Rio Tinto said it would be ploughing USD749 million into the Greater Tom Price project in the Pilbara region of Western Australia.
The investment will go towards mining at both existing and new areas at the West Turner mine, and also includes the construction of a new crusher and a 13-kilometre long conveyor belt.
Rio Tinto shares were 1.5% lower in late trade on Tuesday in London at a price of 4,167.00 pence each.
By George Collard; [email protected]
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