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