Chicago 13/10/2016 - Kennecott Utah Copper LLC, a subsidiary of Rio Tinto Group, will sell mining equipment related to a partially built molybdenum facility near Salt Lake City, Utah, auction house Hilco Industries said in a Oct. 11 notice.
Originally planned for completion by the middle of 2014, the molybdenum autoclave process (MAP) plant would use new manufacturing techniques to mine lower-grade copper/moly concentrates from its Bingham Canyon mine and improve the moly recovery rate to about 7%.
But Rio Tinto shelved the project in 2013 after a historic pit wall slide on April 10 of that year, a Kennecott spokesperson said.
Primarily designed to extract molybdenum as well as copper, the operation was expected to process 10,000 tonnes of molybdenum per annum. Molybdenum is a byproduct of copper production and is used in metal alloys to enhance strength and resist corrosion. Its a key component in oil refining and is also found in stainless and low alloy steel products.
The total estimated cost was $600 million, which is no longer justified given lacklustre moly prices. US molybdic oxide prices hit a 13-year low of $4.50 to $4.80 per pound in December 2015 and have only since recovered to $6.80 to $7.10.
The sale includes a new solar turbine generator, tower filter presses, horizontal filter presses, air handling autoclave boiler, compactors, blenders and mixers, Hilcso said.
Additionally, a thermascrew processor, continuous flow 2-zone conveyor dryer/cooler, cage mill, bulk material load/unload/transfer, dryer & kilns, centrifuges, dust collectors, tanks, pumps, valves, electrical components & systems, and other miscellaneous equipment will all be available through purchase.
(Editing by Tom Jennemann)