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ANNOUNCEMENT OF KENNECOTT PLANS MADE UTAH'S WEDNESDAY `SUPER'

With other areas of the nation suffering plant closures and rising unemployment, Gov. Norm Bangerter must have been the envy of his counterparts in the other 49 states Wednesday as he confirmed that Kennecott will spend nearly $900 million for a new smelter and upgraded refinery at its Utah Copper operations in Salt Lake County - the largest single private investment in the state's history and one that will create 3,300 construction jobs over a three-year period.

"Yesterday we had Super Tuesday nationally, today we have Super Wednesday in Utah," the jubilant governor told a packed gathering of news media, business and civic leaders in the third floor of the governor's mansion.Details of the massive three-year renovation by Kennecott, published in Wednesday's Deseret News, were confirmed by Kennecott President G. Frank Joklik, who received plaudits and ovations for his efforts in bringing the massive project to Utah.

Joklik said projected costs to build a new smelter - on open land immediately east of the current smelter - and to upgrade the refinery are projected at $880 million, about $480 million of which will be spent in Utah. The remaining $400 million will go out of state to buy furnaces and other heavy equipment.

One casualty of the renovation will be the smelter's 1,215-foot-high smokestack, built in 1976 at a cost of $16.3 million and named the state's Outstanding Civil Engineering project in '77. Jok-lik said the giant stack, which can be seen over much of the Salt Lake Valley, will be torn down and a new one, "a fraction of its size," built on the new site to the east.

The rest of this year will be devoted to acquiring the necessary regulatory permits, said Joklik, after which work will get under way. The new construction and dismantling of the old smelter is expected to be completed in three years.

Financing of the project will be accomplished with Kennecott earnings and by shareholders, he said. Asked about the prospect for permanent new jobs after the renovation is complete, Joklik was non-committal but noted that it will help save the 2,500 existing jobs at the facility.

As for the decision to add another $880 million to the $625 million spent over the past six years to modernize the Bingham Canyon copper mine and the concentrator - a total 10-year investment of more than $1.5 billion - Joklik said it "reflects a confidence in Utah, and in Kennecott's presence here, well into the next century."

Sen. Jake Garn, R-Utah, appeared at the announcement via satellite television from Washington, D.C. He told the gathering that both he and Sen. Orrin Hatch, R-Utah, would have liked to be pres-ent for the announcement but could not because the Democratic tax bill was being debated on the floor of the Senate.

Garn said the Kennecott announcement was "incredibly important" for the state and praised Joklik personally for his tenacity in convincing Kennecott's parent company, RTZ of Great Britain, to make the investment.

Recalling a $28 million federal tax credit that Kennecott received in the mid-1980s that allowed the company to reopen when low copper prices and high costs had forced it to shut down temporarily, Garn said that $28 million was one of the best investments the government had ever made.

Rep. Bill Orton, D-Utah, said in a prepared statement that Kenne-cott has created a "win-win" situation that "sends an encouraging message to companies who are considering Utah for business . . . "

Bangerter told the gathering that he has never agreed with those who contend the state and nation can survive with only service-related businesses. "Heavy industry is a key factor" in the state's capacity for growth and progress, he said.

In a reference to the closure and subsequent reopening of Kenne-cott's Utah Copper operations and Geneva Steel in Provo, Bangerter joked that he had been governor "without steel and copper and with steel and copper and I like this better." He praised Joklik for not losing his vision of what Ken-necott could be in Utah during the "dark days" of the '80s. "He's one of our heroes," Bangerter told the group.

In his remarks, Joklik said the project revolves around five "E's," Economic, Environment, Energy Use, Efficiency of Operation and Expansion of the company's ability to process more copper, and "byproducts" such as gold, silver and molybdenum.

These five "E's," he said, will combine to keep jobs in Utah and help Kennecott sustain its competitive edge as one of the most efficient and lowest-cost copper producers in the world.

Graphic #1: Economic Impact

Kennecott's decision to invest an additional $880 million in its Utah Copper operations is expected to have the following impact on Utah

s economy:

-1,100 more people working at the site and 2,200 more people supporting them in related industries over the three-year construction period.

-Purchase of $220 million worth of goods from more than 500 Utah companies.

-Payment of $190 million in earnings to local workers.

-10,000 "person years" of employment during the construction phase.

-$340 million in earnings in household income, equivalent to an additional year of income at a time when most states are losing total income to rising unemployment due to the recession.

-Generation of some $80 million in additional state and local taxes.

-Creation of a ripple effect that will mean more wealth for Utahns "for generations to come."

-Elimination of the current need for Kennecott to export 40 percent of its copper concentrate abroad due to current insufficient smelting capacity.

-50 percent lower operating costs for the new smelter over the existing one, an efficiency that Kennecott said "helps assure a long-term future and jobs for Kennecott's smelter and refinery workers for another 30 years."

GRAPHIC #2: Existing smelter

Concentrate feed (28% Copper) 4,700 pounds of sulfur dioxide per hour

Process gas -- Acid plant

Smelting furnace

Molten matte (*Matte: Molton material made during smelting process)

Converting Furnace -- Acid Plant

Molton copper

Anode casting furnace

Anode to refinery (98.5% Copper)

New Smelter

Concentrate feed (28% Copper) 200 pounds of sulfur dioxide per hour

Smelting furnace

Process gas --Acid plant Converting furnace

Process gas --Acid plant

Anode casting furnace

Process gas -- Acid plant

Anode to refinery (98.5% Copper)

Six furnaces replaced by one flash smelting furnace that eliminates ladling process

(Additional information)

Modernized plant to minimize pollution

In the excitement of the economic benefits that will accrue to Utah from Kennecott's decision to spend $880 million on a new smelter and modernized refinery, the expected positive effects on the environment should not be overlooked. They include:- 99.9 percent of the sulfur in the copper concentrate feed will be captured, up from 93 percent currently.

- Sulfur dioxide emissions will be reduced to less than 200 pounds per hour - 1/20th of the 4,700 pounds per hour allowed by state regulations.

- Sulfur dioxide emissions per ton of copper produced will be six pounds, lower than the world's cleanest smelters now operating in Japan.

- Open air ladle transfers of molten copper are eliminated, reducing "fugitive" emissions that pollute the air.

- Air, water and solids are to be recycled wherever possible in a virtually closed system and computer-controls with automatic shutdowns should prevent accidental emissions of air contaminants.

- The new smelter will produce 85 percent of its electrical power by recovering energy as steam from the furnace gases and emission releases, thus minimizing need for oil and gas to provide power.

- Only a fourth of the energy and water currently needed to produce a ton of copper will be used in the new smelter.

- Future, as well as current, state and federal environmental requirements should be met under the new smelter's design.