The Kennecott Utah Copper Molybdenum Autoclave Process MAP

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The Kennecott Utah CopperMolybdenum Autoclave
Process (MAP)

• Utah Mining Association 93rd Annual Convention
• August 14, 2008

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Kennecott Utah Copper Facilities
Over 100 years of operation and still mining
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Bingham Canyon Mine
Copperton Concentrator
Smelter
Refinery
Power Plant
Tailings

• Products Copper, Silver, Gold, Molybdenum,
  Sulfuric Acid

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Molybdenum Uses
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Molybdenum Market Growth

• Metallurgical sector annual growth rate has
  averaged 3.3 for past 20 years.
• Chemical sector annual growth rate has averaged
  7

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Molybdenum Price Trend (2002 Current)
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Chemical Grade Molybdenum Powder
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KUCC Molybdenum Production
MAP
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MAP Process Steps
Patent 6,149,883
Concentrator Differential Flotation
Autoclave Oxidation and Leaching for full
Dissolution
Solvent Extraction and Purification
Crystallization to Convert back to Solid Form
Drying and Packaging
Rhenium Ion Exchange Recovery
Metallurgical and Chemical Grade Customers
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Autoclave Pressure Cooker
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Autoclave
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Project Value

• Simplification of concentrator operation
• Mine planning flexibility
• Improved molybdenum recovery
• Rhenium recovery
• Chemical grade molybdenum production
• Processing of third-party concentrates
• Sustainable development benefits

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Rhenium Uses

• Primary use as alloy in aircraft engine turbine
  blades (54 lb/engine)
• Combined Boeing and Airbus backlog 7500
  airplanes
• Also used in catalysts

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Rhenium Market

• Demand likely to outpace supply (current global
  demand 55 tons/yr)
• Historic pricing not relevant due to change in
  use (historically used in catalyst
  only)---aerospace alloy usage began in 1990s

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Environmental Sustainable Development

• Emissions lower than conventional roasters
• Less carbon dioxide and sulfur dioxide
• Eliminates transportation to third-party roaster
• Improved recovery of metals from resource
• Control of full production cycle in Utah

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Implementation Capital Cost and Schedule

• Capital Cost 265 million (nominal)
• Plant completion 3rd Qtr. 2010

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End
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Appendix Slides
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KUCC Molybdenum Flotation
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KUCC Molybdenum Flotation
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Garfield Site
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MAP Life Cycle Analysis
MAP emissions are 26 lower than conventional
roasting.
MAP emissions are 60 lower than conventional
roasting.
MAP is 28 lower than conventional roasting.
MAP is 12 lower than conventional roasting.
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