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Released February 15, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Rio Tinto plc (NYSE:RIO) (London, England) has approved a $368 million commitment to advance a $6 billion project to revive and expand an underground copper mine in Arizona, the global mining and metals corporation said recently. Industrial Info is tracking more than $20.7 billion in active Rio Tinto projects, including more than $7.4 billion in North America.
Still in the planning stages, the Resolution Copper Project, a 55:45 joint venture by Rio Tinto and BHP Billiton plc (NYSE:BHP) (Melbourne, Australia), would restart and expand the Magma Copper Mine, which has been closed since 1996. Located in Superior, Arizona, the mine would restart as a 120,000-ton-per-day underground panel block caving operation, with the addition of a flotation concentrator, to produce 600,000 tons per year of copper over a 60-year mine life.
The $368 million commitment to advance the project was approved in December, Rio Tinto said in its 2017 earnings results, which were released February 7. The funding "will improve infrastructure and facilitate mine planning as part of the pre-feasibility study," the company said. Rio Tinto's share of the commitment is $202 million, it said.
Industrial Info assesses the project, which has already seen its planned construction start date slip by 99 months, as having a low probability of moving forward as currently planned. For more information, see Industrial Info's project report.
Industrial Info is also tracking the $660 million life extension and expansion of Kennecott Bingham Canyon Copper Mine in Utah. The project will extend the life of the existing 400,000 ton-per-day open pit mining operation to 2029 by expanding the mine wall and processing complex to increase copper production by 180,000 tons per year. The mine also produces gold and molybdenum. For more information, see Industrial Info's project report.
In 2017, the company completed a $300 million remediation of the east wall at the Bingham Canyon mine following a massive pit wall slide in 2013.
Rio Tinto said it expects capital expenditures to be about $5.5 billion this year, up from nearly $4.5 billion in 2017, including $2 billion in sustaining capital expenditures.
Capital expenditures will rise to about $6 billion in both 2019 and 2020, the company said. Each year includes $2 billion to $2.5 billion of sustaining capital expenditures.
The mining giant also reported progress on projects in other parts of the globe, including the $5.3 billion Oyu Tolgoi Underground Copper-Gold Mine addition in Mongolia. At the existing open pit mine, a 95,000 ton-per-day underground block cave mine is being developed to expand the complex's copper capacity to 430,000 tons per year, and gold capacity to 495,000 ounces per year. The mine addition is expected to begin operations in 2020. For more information, see Industrial Info's project report.
Rio Tinto reported more than $8.7 billion in net earnings for 2017, up more than 90% from earnings in 2016. Consolidated sales revenues were $40 billion in 2017, about $6.2 billion more than in 2016, primarily due to higher average commodity prices.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Still in the planning stages, the Resolution Copper Project, a 55:45 joint venture by Rio Tinto and BHP Billiton plc (NYSE:BHP) (Melbourne, Australia), would restart and expand the Magma Copper Mine, which has been closed since 1996. Located in Superior, Arizona, the mine would restart as a 120,000-ton-per-day underground panel block caving operation, with the addition of a flotation concentrator, to produce 600,000 tons per year of copper over a 60-year mine life.
The $368 million commitment to advance the project was approved in December, Rio Tinto said in its 2017 earnings results, which were released February 7. The funding "will improve infrastructure and facilitate mine planning as part of the pre-feasibility study," the company said. Rio Tinto's share of the commitment is $202 million, it said.
Industrial Info assesses the project, which has already seen its planned construction start date slip by 99 months, as having a low probability of moving forward as currently planned. For more information, see Industrial Info's project report.
Industrial Info is also tracking the $660 million life extension and expansion of Kennecott Bingham Canyon Copper Mine in Utah. The project will extend the life of the existing 400,000 ton-per-day open pit mining operation to 2029 by expanding the mine wall and processing complex to increase copper production by 180,000 tons per year. The mine also produces gold and molybdenum. For more information, see Industrial Info's project report.
In 2017, the company completed a $300 million remediation of the east wall at the Bingham Canyon mine following a massive pit wall slide in 2013.
Rio Tinto said it expects capital expenditures to be about $5.5 billion this year, up from nearly $4.5 billion in 2017, including $2 billion in sustaining capital expenditures.
Capital expenditures will rise to about $6 billion in both 2019 and 2020, the company said. Each year includes $2 billion to $2.5 billion of sustaining capital expenditures.
The mining giant also reported progress on projects in other parts of the globe, including the $5.3 billion Oyu Tolgoi Underground Copper-Gold Mine addition in Mongolia. At the existing open pit mine, a 95,000 ton-per-day underground block cave mine is being developed to expand the complex's copper capacity to 430,000 tons per year, and gold capacity to 495,000 ounces per year. The mine addition is expected to begin operations in 2020. For more information, see Industrial Info's project report.
Rio Tinto reported more than $8.7 billion in net earnings for 2017, up more than 90% from earnings in 2016. Consolidated sales revenues were $40 billion in 2017, about $6.2 billion more than in 2016, primarily due to higher average commodity prices.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
