Kennecott Utah Copper's 2007 production soared

Enterprise, The, Feb 25, 2008

Kennecott Utah Copper's (KUC) Bingham Canyon Mine was the top producing mine in the Rio Tinto Group for 2007, having the highest net earnings in the company, with $1.6 billion.

KUC, which meets approximately 13 percent of the copper needs in the United Slates, increased its copper production in 2007 to 292,800 tons, exceeding 2006 levels of 240,200, a 22 percent increase. This is the second year in a row that KUC has been London-based Rio Tinto's top producing mine operation.

In other products produced at Bingham Canyon. gold reached 523,000 ounces in 2007,surpassing the previous record level of 488,000 ounces set in 2002, a 7 percent increase; and silver reached 4,364,700 ounces in 2007, surpassing the previous record of 4,151,700 ounces set in 2006, a 5 percent increase.

KUC's Bingham Canyon mine has one of the lowest cost profiles in the copper industry due to the presence of molybdenum, gold and silver in the ore body, making it one of Rio Tinto's most profitable and productive assets. These metals create significant value as co-products to copper.

KUC has also identified a world-class molybdenum deposit within the Bingham Canyon Mine. Molybdenum has been a major contributor to KUC's profitability in recent years and will continue to do so in the future because of its use in alloys, stain-less steel and other metals, and its ability to enhance metal's toughness, high-temperature strength and corrosion ability.

Additionally, in the second quarter of 2008, KUC is expected to complete the expansion and modernization of its bulk flotation process at the Copperton concentrator.

During the bulk flotation process, copper, gold, silver and molybdenum are released from the ore and made into concentrate. By improving concentrate quality and enhancing the production process, KUC will be able to bring forward refined copper production planned for 2010 into 2008 and 2009, as well as improved molybdenum, silver and gold recovery.