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Mincore

Mining Brief - June 21, 2023

1) A coalition of local and national environmental groups are suing the US Forest Service over the authorization of two mining exploration projects in the Patagonia Mountains in southern Arizona. The lawsuit says that the US Forest Service violated the National Environmental Protection Act by approving the exploration projects without considering the affects mining could have on Sonoita Creek drainage or the areas endangered species including the Mexican spotted owl. The exploration projects are located within 4 miles south of Patagonia, Arizona and near another district where South32 is seeking approval of the Hermosa Mine. "Reckless exploratory mining has no place in the wild, biodiverse Patagonia Mountains,” Laiken Jordahl, Southwest conservation advocate at the Center for Biological Diversity, said. “Endangered species like jaguars, ocelots and Mexican spotted owls already face threats from border walls, climate change and habitat loss. The last thing these rare animals need is a new copper mine ravaging the heart of their Arizona range." The area is rich with mining history and obviously the critical minerals needed for the green transition that environmental agencies support.


2) Rio Tinto is investing in its Kennecott operation near Salt Lake City, Utah increasing its production from its underground mining to strengthen its supply of copper in the US. $498 million of funding has been approved to deliver underground development and infrastructure in an area known as the North Rim Skarn (NKS). Production from the area will begin in 2024, ramping up to deliver 250,000 tons of additional copper over 10 years. Rio also mentioned that "...the above production target is in part underpinned by Inferred Resources, we note in accordance with ASX Listing Rule 5.16.4 that there is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realized." The underground mine will also leverage battery electric vehicles, following a successful trial with Sandvik Mining and Rock Solutions equipment. Rio Tinto states: "BEV’s create a safer and healthier workplace for employees underground, increase the productivity of the mine and reduce emissions from operations." Rio Tinto Copper CEO Clayton Walker said: “We are investing to build a world class underground mine at Kennecott and strengthen our processing facilities, to meet the growing demand for copper in the United States, a key material for domestic manufacturing and the energy transition. This investment will position Kennecott to continue the strong contribution it has made as part of the Salt Lake Valley community for 120 years, injecting about $1.5 billion annually to the local Utah economy.”

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