Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Rio Tinto (ASX:RIO) Invests $1.5 Billion For Kennecott Copper Production

Rio Tinto (ASX: RIO) has announced that it’s going to invest $1.5 billion to continue production at Kennecott copper to 2032.

Rio Tinto’s origins date back more than 145 years, but today it is one of world’s largest aluminium and iron ore producers, with much of its sales revenue coming from its operates in Western Australia. It also owns, fully or partly, mining projects for copper, diamonds, uranium and other minerals.

Rio Tinto’s Large Investment

The mining giant announced this morning that it has approved a $1.5 billion investment (100% basis) to continue production at its Kennecott copper operation in the US.

The company described the project as a world class project which is high value and low risk that will generate attractive returns, and allow further exploration of the deposit and options for mine life extension.

The money will be invested over the next six years to extend operations at Kennecott for the next 12 years to 2032.

What Will The Money Be Spent On?

It will further extend strip waste rock mining and support additional infrastructure development in the second phase of the South Wall Project, to allow mining to continue into a new area of the ore body and produce around one million tonnes of refined copper between 2026 and 2032.

The investment will start in 2020 and was included in its total capital expenditure guidance of $7 billion in 2020 and $6.5 billion in both 2021 & 2022 as development capital.

Including the new money being invested, Rio Tinto will have put more than $5 billion into the modernisation, environmental stewardship and mine-life extension since the Kennecott acquisition in 1989.

Rio Tinto CEO J-S Jacques said: “The outlook for copper is attractive, with strong growth in demand driven by its use in electric vehicles and renewable power technologies, and declining grades and closures at existing mines impacting supply. 

Kennecott is uniquely positioned to meet strong demand in the US and delivers almost 20% of the country’s copper production. North American manufacturers have relied on high quality products from Kennecott for the past century and this investment means it will continue to be a source of essential materials into the next decade.”

Rio Tinto also said that the continuation of the mining would be done with a significantly reduced carbon footprint.

[ls_content_block id=”14945″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content