TIDMRIO
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]) of funding has been approved to deliver
underground development and infrastructure for an area known as the
North Rim Skarn ([2]) (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] 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] .
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]) .
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
Measured Mineral Resources Indicated Mineral Inferred Mineral Resources Total Mineral Resources
Resources
as at 31 March as at 31 March as at 31 March as at 31 March 2023
2023 2023 2023
==================== ===== ===== ==================== ============ ==================== ===== ===== ==================================
Likely Rio
mining Tinto
method(1) Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Interest
============ ======= ===== ==== ===== ===== ======= ===== ==== ===== ===== ======= ===== ==== ===== ===== ======= ===== ==== ===== =====
Copper (2) Mt % Cu g/t g/t % Mo Mt % Cu g/t g/t % Mt % Cu g/t g/t % Mo Mt % g/t g/t %
Au Ag Au Ag Mo Au Ag Cu Au 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
Probable Ore Total Ore Reserves Average mill Rio Tinto
Reserves recovery % share
as at 31 March as at 31 March Recoverable Metal
2023 2023
==================== ============ =========================== =====
Type Rio
of Tinto
mine(1) Tonnage Grade Tonnage Grade Interest
============ ======= ===== ==== ===== ===== ======= ===== ==== ===== ===== ===== ===== ===== =====
Copper (2) Mt % Cu g/t g/t % Mo Mt % g/t g/t % Mo Cu Au Ag Mo % Mt Moz Moz Mt
Au Ag Cu Au Ag Cu Au Ag 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, United Media Relations, Australia Media Relations,
Kingdom Americas
Matt Chambers
Matthew Klar M +61 433 525 739 Simon Letendre
M +44 7796 630 637 M +1 514 796 4973
Jesse Riseborough
David Outhwaite M +61 436 653 412 Malika Cherry
M +44 7787 597 493 M +1 418 592 7293
Alyesha Anderson
M +61 434 868 118
Investor Relations, United Investor Relations, Australia
Kingdom
Tom Gallop
Menno Sanderse M +61 439 353 948
M +44 7825 195 178
Amar Jambaa
David Ovington M +61 472 865 948
M +44 7920 010 978
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] All dollar values are in USD.
[2] 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] 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) , 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] 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 " and have been
prepared by Competent Persons in accordance with the requirements
of the JORC Code and the ASX Listing Rules.
[5] 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.
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END
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