BINGHAM CANYON MINE, Utah — Kennecott Utah Copper announced Tuesday the slide at their Bingham Canyon Mine moved more than 165 million tons of material, and they estimate their production of mined and refined copper in 2013 will be 50 percent lower than planned.
The Mine Safety and Health Administration is not allowing access to the pit as they continue their investigation.
The estimation of the slide’s severity and its impact on production came during the same week the company asked employees to take voluntary unpaid time off.
According to a press release from Kennecott Utah Copper, the company has confirmed that three of their 13 existing shovels were damaged. Fourteen of their existing 100 haul truck fleet vehicles were damaged, as well as some ancillary equipment like drills, bulldozers and graders.
The full extent of the damage and how much equipment is recoverable is still being assessed.
According to the same press release, “Because of the slide and immediate impacts, Kennecott is invoking Force Majeure in accordance with terms in the agreements with companies that we supply copper cathodes and sulphuric acid products.”
Force Majeure relates to insurance laws in situations where one party is unable to complete contracts due to causes outside of their control.
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