REG - Rio Tinto - Rio Tinto invests to strengthen US copper supply
20/06/2023 15:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230620:nRST3225Da&default-theme=true
RNS Number : 3225D Rio Tinto PLC 20 June 2023
Notice to
ASX/LSE
Rio Tinto invests to strengthen copper supply in US
20 June 2023
Rio Tinto 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.
$498 million(( 1 (#_ftn1) )) of funding has been approved to deliver
underground development and infrastructure for an area known as the North Rim
Skarn(( 2 (#_ftn2) )) (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 3 (#_ftn3) alongside
open cut operations.
As the above production target is in part underpinned by Inferred Resources,
we note in accordance with ASX Listing Rule 5.16.4 that there is a low level
of geological confidence associated with Inferred Mineral Resources and there
is no certainty that further exploration work will result in the determination
of Indicated Mineral Resources or that the production target itself will be
realised.
In September 2022, Rio Tinto 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 4 (#_ftn4) .
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.
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. As the second largest copper producer in the US, this
will allow Kennecott to continue to deliver a high quality product to
customers.
Rio Tinto Copper chief operating officer Clayton Walker said: "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."
Studies to inform decisions on the next phases of expanding underground
production continue in parallel with work that is being advanced to extend
open pit mining at Kennecott beyond 2032.
All the above investments are already included in Rio Tinto's share of capital
investment guidance for 2023 to 2025.
Kennecott Underground Mineral Resources and Ore Reserves
The NRS has updated Indicated Mineral Resources of 10.8 Mt at 2.93 % copper,
1.20 g/t gold, 65.97 g/t silver, 0.008 % molybdenum, and Inferred Mineral
Resources of 7.7 Mt at 3.13 % copper, 0.96 g/t gold, 18.41 g/t silver, and
0.005 % molybdenum identified based on additional drilling and an initial
Probable Ore Reserve of 3.0 Mt at 2.39 % copper, 1.77 g/t gold, 18.59 g/t
silver, and 0.010 % molybdenum(( 5 (#_ftn5) )).
Mineral Resources are reported in addition to Ore Reserves. Mineral Resources
and Ore Reserves are quoted on a 100 per cent basis.
Mineral Resources declaration
The Table 1 Release sets out Measured, Indicated and Inferred Mineral
Resources for the underground skarns at the Kennecott Copper operation. A
tabulation of the Mineral Resources is provided in Table A.
Table A Rio Tinto Kennecott Underground Mineral
Resources as at 31 March 2023
Likely Measured Mineral Resources Indicated Mineral Resources Inferred Mineral Resources Total Mineral Resources Rio Tinto
mining
Interest
method(1)
as at 31 March 2023 as at 31 March 2023 as at 31 March 2023 as at
31
March
2023
Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade
Copper(2) Mt % Cu g/t Au g/t Ag % Mo Mt % Cu g/t Au g/t Ag % Mo Mt % Cu g/t Au g/t Ag % Mo Mt % Cu g/t Au g/t Ag % Mo %
Bingham Canyon (US) - Underground Skarns
- Lower Commercial Skarn U/G 0.2 2.52 1.27 10.56 0.056 1.1 2.08 0.72 9.43 0.029 6.2 1.84 0.86 11.62 0.011 7.5 1.89 0.84 11.26 0.015 100.0
- North Rim Skarn U/G - - - - - 10.8 2.93 1.20 65.97 0.008 7.7 3.13 0.96 18.41 0.005 18.5 3.02 1.10 46.26 0.007 100.0
Total Underground Skarns 0.2 2.52 1.27 10.56 0.056 12.0 2.85 1.15 60.58 0.010 13.9 2.56 0.91 15.37 0.008 26.0 2.69 1.03 36.16 0.009
1 Likely mining method: U/G = underground.
2 Copper Mineral Resources are stated on a dry in situ weight basis.
Ore Reserves declaration
The Table 1 Release also sets out additional Probable Ore Reserves at the
Kennecott Copper operation, with the first time reporting of Ore Reserves
associated with the NRS. A tabulation of the Ore Reserves is provided in
Table B.
Table B Rio Tinto Kennecott Underground Ore Reserves as
at 31 March 2023
Type Probable Ore Reserves Total Ore Reserves Average mill recovery % Rio Tinto Rio Tinto share
of
Interest
mine(1)
as at 31 March 2023 as at 31 March 2023 Recoverable Metal
Tonnage Grade Tonnage Grade
Copper(2) Mt % Cu g/t Au g/t Ag % Mo Mt % Cu g/t Au g/t Ag % Mo Cu Au Ag Mo % Mt Cu Moz Au Moz Ag Mt Mo
Bingham Canyon (US) - Underground Skarns
- Lower Commercial Skarn U/G 1.7 1.90 0.71 10.07 0.044 1.7 1.90 0.71 10.07 0.044 90 71 76 71 100 0.030 0.028 0.421 0.001
- North Rim Skarn U/G 3.0 2.39 1.77 18.59 0.010 3.0 2.39 1.77 18.59 0.010 93 69 64 45 100 0.066 0.117 1.149 0.000
Total Underground Skarns 4.7 2.21 1.39 15.50 0.022 4.7 2.21 1.39 15.50 0.022 0.096 0.144 1.569 0.001
1 Type of mine: U/G = underground.
2 Copper Ore Reserves are reported as dry mill feed tonnes.
Contacts
Please direct all enquiries to media.enquiries@riotinto.com
Media Relations, Media Relations, Media Relations,
United Kingdom Australia Americas
Matthew Klar Matt Chambers Simon Letendre
M +44 7796 630 637 M +61 433 525 739 M +1 514 796 4973
David Outhwaite Jesse Riseborough Malika Cherry
M +44 7787 597 493 M +61 436 653 412 M +1 418 592 7293
Alyesha Anderson
M +61 434 868 118
Investor Relations, Investor Relations,
United Kingdom Australia
Menno Sanderse Tom Gallop
M +44 7825 195 178 M +61 439 353 948
David Ovington Amar Jambaa
M +44 7920 010 978 M +61 472 865 948
Danielle Smith
M +44 7788 190 672
Rio Tinto plc Rio Tinto Limited
6 St James's Square Level 43, 120 Collins Street
London SW1Y 4AD Melbourne 3000
United Kingdom Australia
T +44 20 7781 2000 T +61 3 9283 3333
Registered in England Registered in Australia
No. 719885 ABN 96 004 458 404
This announcement is authorised for release to the market by Steve Allen, Rio
Tinto's Group Company Secretary.
LEI: 213800YOEO5OQ72G2R82
riotinto.com
1 (#_ftnref1) All dollar values are in USD.
2 (#_ftnref2) The NRS Mineral Resources and Ore Reserves, together with the
Lower Commercial Skarn (LCS) Mineral Resources and Ore Reserves, form the
Underground Skarns Mineral Resources and Ore Reserves.
3 (#_ftnref3) This production target for 2023 to 2033 is underpinned as to
25% by Probable Ore Reserves, 9% by Indicated Resources, and 66% by Inferred
Resources. Mined copper is reported as total recoverable metal. These
estimates of Mineral Resources and Ore Reserves were reported in a release
dated 20 June 2023 titled "Rio Tinto Kennecott Mineral Resources and Ore
Reserves" (Table 1 Release) which is available on Rio Tinto's website at
resources & reserves (riotinto.com)
(https://www.riotinto.com/invest/financial-news-performance/resources-and-reserves)
, and have been prepared by Competent Persons in accordance with the
requirements of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves, 2012 (JORC Code) and the ASX Listing
Rules.
4 (#_ftnref4) This production target is reported as total recoverable metal
and is underpinned as to 100% by Probable Ore Reserves. These estimates of
Mineral Resources and Ore Reserves were reported in a release to the ASX dated
27 September 2022 titled "Rio Tinto Kennecott Mineral Resource and Ore
Reserves
(https://cdn-rio.dataweavers.io/-/media/content/documents/invest/reserves-and-resources/2022/rt-kennecott-mineral-resources-2022.pdf?rev=8219954b8e3d4d81a4ec73430eaac182)
"
(https://cdn-rio.dataweavers.io/-/media/content/documents/invest/reserves-and-resources/2022/rt-kennecott-mineral-resources-2022.pdf?rev=8219954b8e3d4d81a4ec73430eaac182)
and have been prepared by Competent Persons in accordance with the
requirements of the JORC Code and the ASX Listing Rules.
5 (#_ftnref5) These Mineral Resources and Ore Reserves have been reported in
accordance with the JORC Code and the ASX Listing Rules in the Table 1
Release. The Competent Person responsible for the information in that release
that relates to Mineral Resources is Mr Ryan Hayes, a Member of the
Australasian Institute of Mining and Metallurgy (MAusIMM). The Competent
Person responsible for the information in that release that relates to Ore
Reserves is Mr Stephen McInerney, a Member of the Australasian Institute of
Mining and Metallurgy (MAusIMM). Rio Tinto confirms that it is not aware of
any new information or data that materially affects the information included
in the Table 1 Release, that all material assumptions and technical parameters
underpinning the estimates in the Table 1 Release continue to apply and have
not materially changed, and that the form and context in which the Competent
Persons' findings are presented have not been materially modified.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END MSCKZGZVGGRGFZMRecent news on Rio Tinto
See all newsREG - Rio Tinto - Total Voting Rights
AnnouncementREG - Rio Tinto - Additional Listing
AnnouncementREG - Rio Tinto - Director/PDMR Shareholding
AnnouncementREG - Rio Tinto - Director/PDMR Shareholding
AnnouncementREG - Rio Tinto - Director/PDMR Shareholding
Announcement