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Rio Tinto, the parent company of Kennecott Utah Copper, plans to spend $238 million on the next step of studying an expansion that will keep copper and other metals coming out of the Bingham Canyon pit for about 10 years after the originally planned closure.
The company, based in London and Sydney, noted that this is the first of four internal approvals needed for its Cornerstone Project. In addition, Kennecott has started the first of more than two dozen regulatory reviews that are required.
A statement from Kennecott said the funding is needed "to advance the Cornerstone Project to a feasibility level of study" and also to buy equipment that can take years of lead time to acquire.
"Advancing to the feasibility-study phase is part of the normal progression for Rio Tinto business units requiring significant capital investment," the statement said. "The stages in the project process include an order of magnitude study, pre-feasibility study, and feasibility study and final approval."
If Rio Tinto ultimately decides to proceed, the Cornerstone Project would keep the massive copper mine working through 2028 by expanding the perimeter south and digging deeper. A fifth grinding line would be added at the Copperton concentrator, the tailings impoundment would be expanded and power generation facilities upgraded.
Kennecott is expected to return to Rio Tinto's investment committee in the first half of next year to request the most of the capital funds required for the project once the feasibility study is done.
Environmental groups have criticized the expansion plans because of Kennecott's enormous impact on pollution in the valley.