Resolution Copper Awards $110M in Drilling, Underground Development Contracts

Resolution Copper Awards $110M in Drilling, Underground Development Contracts

Resolution Copper has awarded approximately $110 million in contracts to Major Drilling America Inc and Redpath USA Corporation to advance exploration and underground development at its proposed Arizona copper mine, International Mining reports.

Market Impact

The contracts mark an early commitment within a roughly $500 million investment program Resolution Copper announced after completing the Final Environmental Impact Statement process, securing a Record of Decision, and finalizing a congressionally mandated land exchange earlier this year. Resolution Copper is a joint venture owned by Rio Tinto (55%) and BHP (45%).

Major Drilling America has been awarded a two-and-a-half year contract for deep-hole directional diamond core drilling, both from the surface and from roughly 6,800 feet underground, to continue delineating the Resolution orebody. The program will deploy four large-capacity surface core drilling rigs from Utah-based Boart Longyear, including two LF350 rigs already on site and two next-generation LF300 rigs due for delivery by year end. The rigs include remote-controlled drilling and mechanized rod handling technology intended to keep workers clear of moving equipment.

Redpath has been contracted for the first phase of underground development, converting two existing 7,000-foot-deep shafts from sinking to development configuration and installing new structural steel and infrastructure. Redpath will also build a new mine station roughly 6,800 feet below ground, including about 1,500 feet of tunnels, truck and drill bays, and a maintenance shop. New underground equipment includes a production drill and two Caterpillar loaders procured through Empire CAT in Mesa, Arizona.

Vicky Peacey, President and General Manager of Resolution Copper, said the project could supply up to 25% of America’s copper demand for decades and that Rio Tinto’s Kennecott smelter and refinery in Utah could provide a domestic processing pathway, “subject to technical, commercial and permitting considerations.”

The work is expected to support 100 new full-time Resolution Copper jobs. Recruitment is underway for the first 50 positions in geology, electrical and mechanical trades, instrumentation, engineering, hydrogeology, supervision, and core handling, plus entry-level apprenticeships. A further 50 roles are expected to be posted over the next six months. A final investment decision still depends on further data collection, state permits, and partner approvals.

What It Means for Subcontractors

• Underground development subs in shaft outfitting, structural steel, and mine infrastructure should get pre-qualified with Redpath USA Corporation now, given the active contract covering shaft conversion and a new mine station roughly 6,800 feet down.
• Electrical, mechanical, instrumentation, and hydrogeology trades should apply directly through Resolution Copper’s recruitment push, with 50 roles being filled now and another 50 expected over the next six months.
• Drilling support and logistics contractors in central Arizona should track Major Drilling America’s two-and-a-half-year program, which involves mobilizing four large rigs, two already on site and two more arriving by year end, creating near-term demand for site support, transport, and maintenance services.
• Equipment dealers and maintenance shops in the Mesa, Arizona area should note Empire CAT’s role supplying loaders for underground work, a potential model for other regional suppliers to pursue similar procurement relationships.
• Subs should hold off on major mobilization for full-scale construction packages until Resolution Copper reaches final investment decision, which still requires additional state permits and partner approvals beyond the current $110 million in early-phase contracts.