Rio okays feasibility study
Anglo-Australian Rio Tinto (ASX: RIO) says it has given the go ahead to spending US$238 million to advance a feasibility study for extending the life of Kennecott Utah Copper’s Bingham Canyon Mine in Salt Lake City, and for the purchase of related long-lead time equipment.
The mining giant said overnight that the study will look at extending the mine’s life from 2019 to 2028 through pushing back the south wall and constructing supporting infrastructure and equipment. This includes a fifth grinding line at the Copperton Concentrator, expanding the tailings impound and upgrading power generation facilities.
According to Rio, the feasibility study has been discussed with the local community as part of an extensive community engagement programme that has been running since August 2010 in relation to the potential expansion and securing the necessary regulatory permits.
A final investment decision is expected in the first half of 2012.