REG - Rio Tinto - Rio Tinto to start underground mining at Kennecott

Rio TintoAnnouncement

27/09/2022 09:00

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RNS Number : 8044A  Rio Tinto PLC  27 September 2022

Rio Tinto to start underground mining at Kennecott copper operations

Rio Tinto has approved a $55 million 1  investment in development capital to
start underground mining and expand production at its Kennecott copper
operations in Utah, United States.

 

Underground mining will initially focus on an area known as the Lower
Commercial Skarn (LCS), which will deliver a total of around 30kt 2  of
additional high quality mined copper through the period to 2027 alongside open
cut operations. The first ore is expected to be produced in early 2023, with
full production in the second half of the year. It will be processed through
the existing facilities at Kennecott, one of only two operating copper
smelters in the United States.

 

Kennecott holds the potential for significant and attractive underground
development. The LCS is the first step towards this, with a Mineral Resource
of 7.5 Mt at 1.9% copper, 0.84 g/t gold, 11.26 g/t silver, and 0.015%
molybdenum identified based on drilling and a Probable Ore Reserve of 1.7 Mt
at 1.9% copper, 0.71 g/t gold, 10.07 g/t silver, and 0.044% molybdenum 3 .

 

Underground battery electric vehicles are currently being trialed at Kennecott
to improve employee health and safety, increase productivity and reduce carbon
emissions from future underground mining fleets. A battery electric haul truck
and loader supplied by Sandvik Mining and Rock Solutions are being used to
evaluate performance and suitability as part of underground development work.

 

Rio Tinto Copper chief executive Bold Baatar said, "This investment will allow
us to quickly bring additional volumes of high quality copper to the market
and build our knowledge and capabilities as we evaluate larger scale
underground mining at Kennecott. We are progressing a range of options for a
significant resource that is yet to be developed at Kennecott, which could
extend our supply of copper and other critical materials needed for electric
vehicles and renewable power technologies."

 

"Trialling underground battery electric vehicles is an exciting step in our
work to create a safer workplace for our employees, increase the productivity
of the mine and reduce emissions from our operations. We look forward to
seeing their potential for deployment."

 

Existing undergound infrastructure is currently being extended to enable early
access to the next underground resource and undertake characterisation
studies. A Feasibility Study to inform decisions on the next phase of
underground production is expected to be completed in 2023. This will be one
of several potential stages currently being investigated.

 

Feasibility studies are also being progressed to extend open pit mining at
Kennecott beyond 2032.

 

The Table 1 Release was made in accordance with the JORC Code and the ASX
Listing Rules. Mineral Resources are reported in addition to Ore Reserves.
Mineral Resources and Ore Reserves are quoted on a 100 per cent basis.

 

Mineral Resource declaration

The Table 1 Release sets out Measured, Indicated and Inferred Mineral
Resources at the Kennecott Copper operation with the first time reporting of
the Lower Commercial Skarn. A tabulation of the additions to Mineral Resource
due to the LCS is provided in Table A.

 

Table A  Rio Tinto Kennecott Lower Commercial Skarn Mineral Resources as at
31 July 2022

                           Likely         Measured resources                                                 Indicated resources                        Inferred resources                              Total mineral resources                Rio Tinto

mining
Interest

method((a))
                                                                        as at July 2022                                        as at July 2022                                  as at July 2022                         as at
                                                                                                                                                                                                                        July
                                                                                                                                                                                                                        2022
                                          Tonnage        Grade                                               Tonnage  Grade                             Tonnage     Grade                               Tonnage  Grade
 Copper((b))                              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)
 - 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

 (a) Likely mining method: O/P = open pit/surface; U/G = underground.
 (b) Copper Resources are stated on a dry in situ weight basis.

 

Ore Reserve 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 Lower Commercial Skarn. A tabulation of the additions to
Ore Reserve due to the LCS is provided in Table B.

 

Table B  Rio Tinto Kennecott Lower Commercial Skarn Ore Reserves as at 31
July 2022

                           Type           Probable ore reserves                                        Total ore reserves                     Average mill recovery %         Rio Tinto  Rio Tinto share

of
Interest
                           mine((a))
                                                                        as at July 2022                                as at July 2022                        Recoverable Metal
                                          Tonnage        Grade                                         Tonnage  Grade
 Copper((b))                              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)
 - 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

 (a) Type of mine: O/P = open pit/surface, U/G = underground.
 (b) Copper Reserves are reported as dry mill feed tonnes.

 

A copy of the Table 1 Release is available on Rio Tinto's website at
riotinto.com/invest/financial-news-performance/resources-and-reserves
(https://www.riotinto.com/invest/financial-news-performance/resources-and-reserves)

 

 

 

 Contacts  Please direct all enquiries to media.enquiries@riotinto.com

 

 Media Relations, UK         Media Relations, Australia

 Illtud Harri                Jonathan Rose

 M +44 7920 503 600          M +61 447 028 913

 Matthew Klar                Matt Chambers

 M+ 44 7796 630 637          M +61 433 525 739

 David Outhwaite             Jesse Riseborough

 M +44 7787 597 493          M +61 436 653 412

 Media Relations, Americas

 Simon Letendre
 M +514 796 4973

 Malika Cherry

 M  +1 418 592 7293

 Investor Relations, UK      Investor Relations, 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

 Clare Peever

 M +44 7788 967 877

 Rio Tinto plc               Rio Tinto Limited

 6 St James's Square         Level 43, 120 Collins Street

London SW1Y 4AD

United Kingdom             Melbourne 3000

 T +44 20 7781 2000          Australia

Registered in England

 No. 719885

                             T +61 3 9283 3333

                             Registered in Australia

                             ABN 96 004 458 404

 

This announcement is authorised for release to the market by Steve Allen, Rio
Tinto's Group Company Secretary.

 

riotinto.com

 

 

 1  All dollar values are in USD.

 2  Lower Commercial Skarn production targets referred to in this release are
reported as recoverable copper and are underpinned as to 100% by Probable Ore
Reserves. These estimates of Ore Reserves were reported in a release to the
Australian Securities Exchange (ASX) dated 31 August 2022 "Rio Tinto Kennecott
Mineral Resources and Ore Reserves" (Table 1 Release) 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).

 3  The Mineral Resource and Ore Reserve estimates referred to in this release
were set out 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.

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