Firms to test huge ore deposit in Arizona (complete article from source)
Source: Arizona Daily Star, by Gabriela Rico
August 05, 2008
Will invest $652M at Superior site; land swap is key factor
British mining giant Rio Tinto and Australian partner BHP-Billiton plan to invest $652 million for studies at the site of a large copper deposit at their Resolution Copper Mining operation in Superior.
Town leaders are embracing the company and the hoped-for mine and recently signed an agreement outlining their future relationship.
The underground mining operation — which Resolution predicts will yield 600,000 tons of copper a year for 50 years — hinges on a land swap with the federal government.
The Southeast Arizona Land Exchange and Conservation Act would give Resolution 3,025 acres three miles east of Superior in exchange for seven parcels totaling 4,583 acres of environmentally sensitive land throughout Arizona. It is currently under review by a congressional committee.
Monday's announcement of the investment "does not diminish the importance of the land exchange," said Resolution Copper President and CEO David Salisbury.
"The additional funding allows for the project team to continue with needed pre-feasibility and exploratory work while we continue to move the land exchange through Congress," he said in a statement.
Still, town leaders are moving forward with optimism.
On July 11, Salisbury and Superior Town Mayor Michael Hing signed a "mutual benefits agreement" that was ratified by the Superior Town Council in which Resolution agrees to the formation of a social-impact committee to manage its contributions to the town with an emphasis on improving schools, sports and youth facilities and local parks.
The so-called pre-feasibility studies of U.S. Forest Service land, known as the Oak Flat parcel, are expected to be completed by 2012, with production at the new mine expected to start by 2020, according to Resolution.
"Rio Tinto's copper operations are . . . well-positioned to take advantage of strong global demand, driven by continued growth in China and other emerging economies," Bret Clayton, Rio Tinto Copper's CEO said in a statement. "Resolution is an exciting prospect with an expected long mine life."
Work scheduled over the next four years includes draining the former Magma Copper mine site and sinking an exploratory shaft about a mile and a half below the surface, as well as evaluating technical, legal and environmental issues, and to prepare a mining plan.
The mine is opposed by some residents of Superior and area Indians who believe the project in Pinal County would damage a scenic area that has strong connections with Apache history.
The project is backed by the Superior Town Council, Gov. Janet Napolitano and environmental and recreation groups such as the Arizona Audubon Society, The Nature Conservancy and the Arizona Game and Fish Department.
Resolution estimates the total cost to complete pre-construction studies will be about $1 billion. The company then plans to spend $4 billion on construction before shipping its first load of copper.
Resolution Copper Mining is owned by Rio Tinto subsidiary Resolution Copper Company and BHP Copper, Inc., a BHP-Billiton plc subsidiary.
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