Rio Tinto (ASX, LSE, NYSE: RIO) has approved $144 million (C$201 million) in additional spending at its Resolution Copper project in Arizona, advancing engineering and underground development after securing land needed for the proposed operation.
The investment program includes $79 million from Rio, which owns 55% of the venture alongside BHP (ASX, LSE, NYSE: BHP). It will support feasibility studies, equipment purchases and water treatment work, creating about 50 additional jobs, Rio said Thursday.
“Resolution Copper has the potential to supply up to 25% of America’s copper demand for decades, strengthen domestic supply chains and deliver significant economic benefits for Arizona,” Rio’s copper chief executive Katie Jackson said in a release.
The spending adds to about $500 million announced when the venture completed its land exchange in March. Securing the acreage removed a major obstacle to developing a large U.S. copper source, but the partners still face state and local permitting, further technical work and opposition over the destruction of sacred Apache land.
Rio shares closed 7% stronger on Thursday in Sydney at A153.04 apiece, giving the company a market value of about A$214 billion ($149 billion).
Oak Flat dispute
The March 16 exchange transferred more than 2,400 acres (971 hectares) near Superior to Resolution Copper in return for more than 5,400 acres of conservation land conveyed to the federal government. Congress authorized the exchange in 2014.
The San Carlos Apache Tribe, Apache Stronghold and other opponents have challenged the project over its effects on Oak Flat, a site used for religious ceremonies and other cultural practices. The proposed underground mining would cause the land above to subside, destroying the sacred site.
The Ninth Circuit Court of Appeals denied rehearing petitions on Sept. 29 concerning an earlier refusal to block the land exchange. Dissenting judges argued that the destruction of Oak Flat would substantially burden Apache religious exercise.
Completion of the exchange and federal environmental review allows the venture to advance preparatory work, but no decision has been made to begin mining, Resolution Copper says on its project status page.
Deep deposit
The deposit near Superior lies about 1,500 to 2,100 metres underground.
As of June 30, it held 724 million indicated tonnes grading 1.89% copper, containing about 13.7 million tonnes of copper, and 1.13 billion inferred tonnes at 1.28%, containing about 14.5 million tonnes, according to BHP’s resource disclosure. Contained amounts calculated from the rounded category figures differ slightly from BHP’s reported total of 28.3 million tonnes.
The latest funding covers engineering for material-handling equipment in both shafts, exploration drilling and purchases of underground mining and electrical equipment.
Resolution Copper awarded contracts worth about $110 million in August to Major Drilling America and Redpath USA for exploration and underground development.
The venture estimates the proposed operation could create thousands of direct and indirect jobs and contribute about $1 billion annually to Arizona’s economy.
Source: www.northernminer.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
