“While we will remain predominantly an open-pit operation for the foreseeable future, the return to underground is a major enabler for our future.”
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What production volumes did Kennecott achieve in 2024?
We delivered a solid year in 2024, which marked our 121st year in operation. On production, we finished the year at approximately 190,000 to 193,000 t of refined copper. For this stage of Kennecott’s life, those volumes constitute a pretty decent outcome and set a firm base for the work ahead.
How significant is Kennecott’s return to underground mining after four decades?
Our own underground journey began with an orebody knowledge campaign in 2021. While we will remain predominantly an open-pit operation for the foreseeable future, the return to underground is a major enabler for our future. It allows us to access incremental copper volumes sooner than any surface mine life expansion. The underground mine is relatively small today because we are still completing the project and ramping up. Under the current scope, once we reach full underground capacity, I expect it to add, on average, roughly 30,000 t/y of mined copper for about seven years.
How are you approaching water stewardship and recovery of resources from mine-influenced water?
We take that responsibility seriously, particularly because we operate next to a large metropolitan area. Over the past 10 to 15 years, we have made substantial progress in recycling water and reducing consumption. Looking forward, the conversation shifts to critical minerals. You cannot simply open a critical mineral mine because the economics often do not stack up well. However, the beauty of a copper orebody is that many of these critical minerals exist in the copper host rock, even if only in very small quantities. We are pursuing research and development to crack the chemistry and extract value from waste streams at the smelter and refinery, and potentially from water. We are as much an innovation and technology company as we are a mining company. Our R&D team partners with universities and technology groups to test and trial new approaches that allow us to produce something we would not otherwise be able to, while also reducing future closure liabilities. It is smarter to invest now than to defer these challenges for decades.
We plan to maintain a dry pit at closure. We will continue pit pumping and water treatment so that the water can be used for public benefit. We are testing and trialing approaches today so that we can deploy them effectively when needed, which is still several decades away.
What is the rationale behind acquiring copper from Milford for the Magna smelter?
We believe a strong local mining industry benefits everyone. Our smelter is a strategic asset, especially with only two operating copper smelters in the United States. We aim to maximize the smelter and keep it at capacity. The timing worked, we had some capacity, and we could bring in third-party volumes. We focus on high online time and strong productivity, enabling us to create more opportunities to purchase third-party concentrates and convert US concentrates into refined products domestically.
How do tariffs affect your business strategy?
The tariff environment can change rapidly and often differs from expectations, so our strategy is to remain agile, run safe and efficient operations, understand customer needs, and maintain strong relationships through any tariff scenario. We do not take a position for or against tariffs, but as a producer of refined cathode that sells on COMEX, we benefited from the anticipation of tariffs being placed on copper and the resulting differential between COMEX and LME. When tariffs were actually announced and refined cathode imports were left off, the price differential leveled quickly, essentially within the day.
How are you addressing the industry-wide talent shortage?
The war for talent is real. Mining engineering enrollments in the US have declined compared to several years ago. With only two smelters in the country, very few students are pursuing copper pyrometallurgy. In addition to partnering with mining schools, we are developing an underground training center to train individuals for roles such as operating haul trucks and bolters. We also recognize that we need to tell our story more effectively and engage with the youth. A mining company is a technology company, and what we make is essential to everyday life and sustainability. You do not get there without proper mining.
What production volumes did Kennecott achieve in 2024?
We delivered a solid year in 2024, which marked our 121st year in operation. On production, we finished the year at approximately 190,000 to 193,000 t of refined copper. For this stage of Kennecott’s life, those volumes constitute a pretty decent outcome and set a firm base for the work ahead.
How significant is Kennecott’s return to underground mining after four decades?
Our own underground journey began with an orebody knowledge campaign in 2021. While we will remain predominantly an open-pit operation for the foreseeable future, the return to underground is a major enabler for our future. It allows us to access incremental copper volumes sooner than any surface mine life expansion. The underground mine is relatively small today because we are still completing the project and ramping up. Under the current scope, once we reach full underground capacity, I expect it to add, on average, roughly 30,000 t/y of mined copper for about seven years.
How are you approaching water stewardship and recovery of resources from mine-influenced water?
We take that responsibility seriously, particularly because we operate next to a large metropolitan area. Over the past 10 to 15 years, we have made substantial progress in recycling water and reducing consumption. Looking forward, the conversation shifts to critical minerals. You cannot simply open a critical mineral mine because the economics often do not stack up well. However, the beauty of a copper orebody is that many of these critical minerals exist in the copper host rock, even if only in very small quantities. We are pursuing research and development to crack the chemistry and extract value from waste streams at the smelter and refinery, and potentially from water. We are as much an innovation and technology company as we are a mining company. Our R&D team partners with universities and technology groups to test and trial new approaches that allow us to produce something we would not otherwise be able to, while also reducing future closure liabilities. It is smarter to invest now than to defer these challenges for decades.
We plan to maintain a dry pit at closure. We will continue pit pumping and water treatment so that the water can be used for public benefit. We are testing and trialing approaches today so that we can deploy them effectively when needed, which is still several decades away.
What is the rationale behind acquiring copper from Milford for the Magna smelter?
We believe a strong local mining industry benefits everyone. Our smelter is a strategic asset, especially with only two operating copper smelters in the United States. We aim to maximize the smelter and keep it at capacity. The timing worked, we had some capacity, and we could bring in third-party volumes. We focus on high online time and strong productivity, enabling us to create more opportunities to purchase third-party concentrates and convert US concentrates into refined products domestically.
How do tariffs affect your business strategy?
The tariff environment can change rapidly and often differs from expectations, so our strategy is to remain agile, run safe and efficient operations, understand customer needs, and maintain strong relationships through any tariff scenario. We do not take a position for or against tariffs, but as a producer of refined cathode that sells on COMEX, we benefited from the anticipation of tariffs being placed on copper and the resulting differential between COMEX and LME. When tariffs were actually announced and refined cathode imports were left off, the price differential leveled quickly, essentially within the day.
How are you addressing the industry-wide talent shortage?
The war for talent is real. Mining engineering enrollments in the US have declined compared to several years ago. With only two smelters in the country, very few students are pursuing copper pyrometallurgy. In addition to partnering with mining schools, we are developing an underground training center to train individuals for roles such as operating haul trucks and bolters. We also recognize that we need to tell our story more effectively and engage with the youth. A mining company is a technology company, and what we make is essential to everyday life and sustainability. You do not get there without proper mining.
