The world has been facing a copper shortage for several years now thanks to surging demand and supply issues. Copper is critical to several important industries and is poised to see even more demand from the small but swiftly growing green energy industry over the next few decades.
Experts predict that supply will remain strained for the rest of the year and the situation may not change any time soon if copper miners don’t find ways to boost supply. However, issues such as deteriorating copper ores, increased mining costs and limited investment in mining will make it difficult for miners to increase production and produce enough copper to meet growing demand.
Rio Rinto, a major global mining group is looking to change the situation by investing hundreds of millions of dollars into copper mines in the United States. The mining group is investing $498 million in its Kennecott operation to bolster its supply of copper on the American market by increasing underground mining yields and optimizing key assets.
Nearly half a billion in funding will be spent developing underground mining infrastructure in the North Rim Skarn (NRS) area, with production from NRS slated to start in 2024 and then ramp up over two years. The group expects NRS to deliver 250,000 tons of additional copper output over the next decade.
Last September, Rio Tinto provided $55 million in development capital to fund the development of underground mining infrastructure in the Lower Commercial Skarn (LCS). Underground copper production in the LCS started in February and is expected to provide 30,000 tons of additional copper until 2027.
These two installations will aid Kennecott in its efforts to build a top-of-the-line underground mine that uses battery-electric vehicle (BEV) technology. A successful 2022 trial proved that BEVs create healthier and safer underground workplaces, reduce emissions from mining operations and boost employee productivity.
The company also noted that $300 million will be spent rebuilding the Kennecott smelter, with the rebuild starting in May 2023, and another $4.12 billion will be used to replace the operation’s molybdenum flotation circuit with a fully automated system and modernize the refinery tank house structure.
According to Rio Tinto’s chief operating officer Clayton Walker, the mining group is investing in Kennecott to build a “world-class underground mine,” reinforce its processing facilities and meet the growing demand for copper on the American market. Walker said that the investment will allow Kennecott to continue making strong contributions to the Salt Lake Valley community and injecting more than a billion dollars into the Utah economy annually.
Other major players such as Southern Copper Corporation (NYSE: SCCO) are undoubtedly also making their own plans regarding how to leverage the anticipated copper shortage so that their stakeholders benefit from their holdings.
About MiningNewsWire
MiningNewsWire (MNW) is a specialized communications platform focused on developments and opportunities in the global resources sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to millions of social media followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled visibility, recognition and brand awareness. MNW is where news, content and information converge.
To receive SMS text alerts from MiningNewsWire, text “BigHole” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.miningnewswire.com
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.miningnewswire.com/Disclaimer
MiningNewsWire
Los Angeles, California
www.miningnewswire.com
310.299.1717 Office
Editor@MiningNewsWire.com
MiningNewsWire is part of the InvestorBrandNetwork.
