Rio Tinto, Kennecott Utah Copper’s (KUC) parent company, will invest $340 million in the construction of a new molybdenum autoclave process (MAP) facility at KUC in Magna, Utah. This will ensure lower-grade molybdenum concentrate is processed more efficiently than through conventional roasters, allow improved metal recovery and operating flexibility, and enable production of metallurgical and higher chemical grade products. MAP will also make it possible for KUC to recover additional by-products from its concentrate.

Kelly Sanders, President and CEO of KUC: “The outlook for molybdenum demand is very strong, driven by the rapid urbanisation and industrialisation of China and India. The production of molybdenum and gold make KUC one of the world’s lowest cost producers of copper.”

Investment in the MAP facility is part of an overall plan to extend the life of the Bingham Canyon mine beyond 2020, where a significant molybdenum deposit remains. Each year, KUC produces around 30 MIb of molybdenum. The MAP facility will process all of the molybdenum produced from the Bingham Canyon mine.

Brendan Ryan, Vice President, Projects and Expansion, KUC: “This capital investment will prove to be a tremendous future benefit to Rio Tinto. MAP is a robust project that will act as an enabler for future extensions to the mine life.”

The MAP design includes a number of energy efficiency features and environmentally responsible techniques for producing molybdenum products. When completed, MAP is anticipated to produce molybdenum with fewer greenhouse gases than traditional roasting plants. The facility includes a heat recovery system that captures excess heat from the autoclave for use in downstream processes. A combined heat and power system, similar to the one being installed at KUC’s refinery, will also be used to produce steam to power the majority of the facility’s electrical requirements. This system will be capable of producing 6.2 MW of clean energy, which is equivalent to the electrical needs of about 6,000 average-sized homes.

The MAP facility will be constructed in two phases. Construction of phase one has already begun between KUC’s smelter and refinery in Magna. First production is anticipated for the fourth quarter of 2012 with full production of 30 MIb scheduled for fourth quarter 2013. Construction of phase two, which adds additional production capacity totalling 60 MIb, is anticipated for completion in the first quarter of 2015.