Market Survey on Copper - Indian Bureau of Mines

through its 100% subsidiary, Kennecott Utah Copper Corp. The facilities employ
about 2,400 people.
In early 2005, Rio Tinto committed $170m to the East 1 pushback project,
which will extend the life of the open pit at Bingham Canyon until 2017. Rio revealed
in 2008 it was studying deepening the 1.2km pit to shore up an extra 2.83 million tons
of copper resources.
Following research from analysts and investors, Rio revealed in 2008 it was
studying deepening the 1.2km pit to shore up an extra 2.83 million tons of copper
resources.
A major molybdenum deposit was discovered in 2008. Additional porphyry
mineralisation was identified beneath the southern wall of the pit. The resources were
studied for extraction by open pit mining methods. However, because of the
economic downturn, the option to expand the underground operations was suspended.
Rio hoped to begin the project in 2009 and produce copper valuing about
$22.67bn at the prevailing prices. A major molybdenum deposit was discovered in
2008. Beneath the southern wall of the pit, additional porphyry mineralisation has
been identified. The resources are being studied for extraction by open pit mining
methods.
In August 2010, Rio announced its Cornerstone project, which is expected to
extend the life of the mine to 2034. Rio is seeking permission from the regulators to
push the south wall back by approximately 1,000ft and deepen the mine by another
300ft in order to reach more than 700Mt of copper ore.
Rio would need to generate or source 100MW of electricity to power the
Cornerstone expansion project. It will also require obtaining 25 of the 70 primary
environmental permits relating to air, water and land.
Geology and Reserves
The classic copper porphyry orebody is not only huge but also enjoys a fairly
uniform distribution of sulphide mineralisation, mainly chalcopyrite. The existing pit
will be worked out by 2013, but open pit and then underground mining will continue
after that. As of end-2009, proven and probable open-pit reserves totalled 524Mt
grading 0.47% copper, 0.044% molybdenum, 0.25g/t gold and 2.08g/t silver. Total
mineral resources were 647Mt at 0.477% copper, 0.18g/t gold, 0.034% molybdenum
and 2.1g/t silver.
Mining
The Bingham Canyon pit is now 2.5 miles wide and very deep. Mining uses a
rotary drilling/blasting – shovel/truck – in-pit crushing system, with two to four blasts
per day. To contain costs, management has been quick to utilise the most costeffective
drilling, loading and haulage equipment and management tools available.
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