Mining giant Rio Tinto Limited (ASX: RIO) has flagged plans to invest another $1.5 billion into its Kennecott Utah copper mine over the next six years. The miner expects total group capex of $7 billion in 2020 and $6.5 billion in 'development capital' over 2021 and 2022.
Rio Tinto chief executive J-S Jacques said "This is an attractive, high value and low risk investment that will ensure Kennecott produces copper and other critical materials to at least 2032.".
According to the CEO the mine accounts for 20 per cent of total copper production in the U.S. and will predominantly supply North American manufacturers. Increased demand for electric vehicles and renewable technologies will also support demand for copper from its Kennecott mine out to 2032.
The copper price is often labelled as a proxy for global growth as increased demand is equated to GDP growth and more industrial production.
Rio shares are up 24 per cent plus dividends over the past year.
