LONDON, UK: Rio Tinto, a global mining company, has announced that it is investing in its Kennecott copper mine near Salt Lake City, Utah, to increase its production from underground mining and improve its processing facilities.

The company said on Tuesday that it has approved $498 million of funding to develop an area known as the North Rim Skarn, which is expected to produce an additional 250 thousand tonnes of copper over the next 10 years, starting from 2024. This follows an earlier investment of $55 million to start underground mining in another area known as the Lower Commercial Skarn, which started production in February 2023 and is expected to produce an additional 30 thousand tonnes of copper by 2027.

The company said it will use battery electric vehicle technology for its underground operations, which will create a safer and healthier workplace, increase productivity and reduce emissions.

The company is also spending $300 million to rebuild its smelter and $120 million to upgrade its refinery and molybdenum circuit, which will allow it to continue to deliver a high quality product to its customers in the US.

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.”

The company said it is also studying the next phases of expanding underground production and extending open pit mining at Kennecott beyond 2032.

The investments are already included in Rio Tinto’s capital guidance for 2023 to 2025.

Rio Tinto approves $55mn to start underground mining at Kennecott copper operations