Tag Archives: Utah

Murray & Roberts’ Cementation Americas business wins Rio and BHP contracts

Murray & Roberts’ Cementation Americas business has confirmed two new mining contracts with Rio Tinto and BHP.

Cementation USA secured the Underground Characterisation Development and Infrastructure project in Utah for Rio Tinto’s Kennecott copper operations (open pit, pictured). The value of this agreement is circa-$70 million, with the initial scope including lateral development and associated infrastructure works.

Rio, only last month, approved a $108 million investment in underground development to enable early orebody access and undertake orebody characterisation studies for underground mining at the Kennecott copper operations.

The contract award positions Cementation USA well for the potential significant scope growth on this project, Murray & Roberts said.

Cementation Canada Inc has secured the completion of Phase 1 of the Jansen potash project in the province of Saskatchewan for BHP. This scope includes the post liner excavation, steel and equipping of the shaft.

The value of the complete project award, subject to a sanction decision for the project, is around $170 million. Cementation Canada has, in the interim, received a works order to proceed with the first work package to the value of $12 million.

BHP said last month that it expected to make a decision on whether to move forward with Jansen, which is expected to produce 4.4 Mt/y of potash in its first phase, in the next two months.

Cementation Canada will apply to also deliver the following phases of the Jansen project, Murray & Roberts noted.

Murray & Roberts said: “During the past year, mining companies in the Americas have experienced prolonged COVID-19 impact, creating short-term order book pressure for engineering and contracting companies. These awards are evidence of new mining investments returning to the region.

“The forecast improvement in capital investment in the mining industry is encouraging and, considering the platform’s leading global position and growing near term project pipeline, there is good potential for accelerated growth for the group’s mining platform.”

Weir ESCO takes advantage of expansion opportunities in Utah, Quebec

Weir ESCO’s growth trajectory has continued in 2021, with the ground engaging tool (GET) major capitalising on two fast-moving expansion opportunities in western USA and eastern Canada in the March quarter.

The acquisitions represent exciting new platforms for sales and brand recognition growth in the two regions, according to the Weir subsidiary.

With one of ESCO’s largest dealers, based in the Western US, set to retire last year, Weir ESCO decided to fill the void.

The company explained: “Without the dealer to represent us, our future with a significant mining operation in the region – a mine that generates approximately 11% of annual copper production in the US – was at stake.”

The mine’s cable shovels are outfitted exclusively with ESCO GET and multiple other pieces of equipment, including hydraulic machines and front-end loaders, are also fitted with ESCO products.

The company’s teams jumped into action to secure the business, with the new Salt Lake City branch becoming operational in early January. It got right to work establishing a direct service relationship with the key customer, Rio Tinto Kennecott, and expanding market share with other mining and infrastructure companies customers in the territory, the company said.

Up north in Canada, the launch of Weir ESCO’s Quebec branch resulted from seizing a timely, high-stakes opportunity, as well, the company said.

Quebec is home to Canada’s largest operating open-pit gold mine, Canadian Malartic. The mine employs more than 2,000 workers around the clock and many pieces of equipment are outfitted with ESCO GET, according to the company.

“When changes in the local distribution channel occurred, Weir ESCO began considering how to parlay the situation into market expansion opportunities,” it said.

Weir Minerals, a division of the Weir parent company, already had an established presence in the area, presenting additional synergy opportunities.

By the end of January, Weir ESCO’s new Quebec team was on board and sharing office space with the Minerals branch (office pictured).

As in Salt Lake City, the Quebec branch will focus on growth through a direct service approach with customers, it said.

Pete Huget, Managing Director for North America, said: “This is an energising time for us as we move with more speed and agility to take advantage of market opportunities to grow the business. We are looking forward to capitalising on these opportunities to service our own customers directly. No one can service a customer like an ESCO employee.”

Rio Tinto Kennecott to recover tellurium from copper smelting

Rio Tinto is to construct a new plant that will recover tellurium, a critical mineral used in solar panels, from copper refining at its Kennecott mine near Salt Lake City, Utah.

The company is investing $2.9 million to set up the plant, which will recover tellurium as a by-product of copper smelting, extracting a valuable mineral from waste streams. The plant will have a capacity to produce around 20 t/y of tellurium, the miner said.

Rio expects to begin production of tellurium in the December quarter of 2021, creating a new North American supply chain for the critical mineral.

Tellurium is an essential component of cadmium telluride, a semiconductor used to manufacture thin film photovoltaic solar panels. Thin films made of this compound can efficiently convert sunlight into electricity, according to the miner. Tellurium can also be used as an additive to steel and copper to improve machinability, making these metals easier to cut. It can also be added to lead to increase resistance to sulphuric acid, vibration and fatigue.

Rio Tinto Kennecott Managing Director, Gaby Poirier, said: “The minerals and metals we produce are essential to accelerate the transition to renewable energy. Adding tellurium to our product portfolio provides customers in North America with a secure and reliable source of tellurium produced at the highest environmental and labour standards with renewable energy. Rio Tinto is committed to using innovation to reduce waste in our production process and extract as much value as possible from the material that we mine and process.”

Utah Governor, Spencer Cox, said: “With abundant natural resources, Utah is ideally positioned to help supply the critical minerals essential to maintain American manufacturing competitiveness. Rio Tinto’s smelter at Kennecott is one of only two that is capable of producing copper and other critical minerals. The new tellurium plant is another valuable contribution to critical mineral independence and energy security in the US”

Along with producing almost 20% of US copper, Kennecott’s smelting process also recovers gold, silver, lead carbonate, platinum, palladium and selenium, while molybdenum is recovered from the Copperton concentrator. In total, nine products are currently recovered from the ore extracted at Kennecott.

Rio Tinto is a partner with the US Department of Energy’s Critical Materials Institute (CMI) and works closely with CMI experts to discover further ways to economically recover critical mineral by-products such as rhenium, tellurium and lithium. The company is also investing in new facilities to extract battery-grade lithium from waste rock at its Boron, California mine site and high quality scandium oxide from waste streams at its metallurgical complex in Sorel-Tracy, Quebec.

Rio pushes back the life of Kennecott copper operation with $1.5 billion investment

Rio Tinto’s Kennecott copper operation in the US is set to keep operating to 2032 following a $1.5 billion investment.

The investment will further extend strip waste rock mining and support additional infrastructure development in the second phase of the South Wall Pushback project, to allow mining to continue into a new area of the orebody and deliver close to 1 Mt of refined copper between 2026 and 2032, according to the mine.

The first phase of the South Wall Pushback, which is expected to be complete in 2021, extended production from 2019 to 2026. Some $300 million remains to be spent of a $900 million investment.

“It is a world-class project that will generate attractive returns and allow further exploration of the deposit and options for mine life extension,” Rio said.

This additional investment will commence in 2020 and is included in the company’s group capital expenditure guidance of $7 billion in 2020, and $6.5 billion in both 2021 and 2022 as development capital, it said.

With this project, Rio says it has invested more than $5 billion in modernisation, environmental stewardship and mine-life extension initiatives since it acquired Kennecott in 1989.

Rio Tinto Chief Executive, J-S Jacques, said: “This is an attractive, high value and low risk investment that will ensure Kennecott produces copper and other critical materials to at least 2032.

“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.”

He added: “Kennecott is uniquely positioned to meet strong demand in the United States 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.”

Earlier this year, Rio announced that it would cut the carbon footprint associated with operations at Kennecott by permanently closing its coal fired power plant and sourcing renewable energy certificates.

Jacques added: “Kennecott will be supplying customers across North America with products that are not only produced in the region but responsibly mined with a significantly reduced carbon footprint.”

Kennecott’s operations include the Bingham Canyon mine, Copperton concentrator, Garfield smelter, refinery, power plant and associated facilities.