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Two new mines set to enter production in British Columbia this year

Imperial Metals plans to start commissioning of its Red Chris operation, south of Dease Lake in the traditional territory of the Tahltan First Nation, in May.

Imperial Metals plans to start commissioning of its Red Chris operation, south of Dease Lake in the traditional territory of the Tahltan First Nation, in May.

Photo by Imperial Metals

28th February 2014

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

  

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British Columbia, which celebrated the opening of the Thompson Creek-owned Mt Milligan copper/gold mine in 2013, will see two more mines enter production this year, bringing the number of operating mines in the province to 21.

The province has promised to open eight new mines by 2015 as part of its BC Jobs Plan, which Premier Christy Clark launched in 2011. So far, two new mines are in operation – the New Afton mine, which New Gold owns near Kamloops and Mt Milligan, north of Prince George – and five more are under construction or permitted. The province also approved seven major expansions of existing mines, Energy and Mines Minister Bill Bennett reports.

In October, Thompson Creek celebrated the grand opening of the $1.5-billion Mt Milligan mine, creating 350 jobs. Construction began in 2010 and the mine shipped its first concentrate in September 2013.

Imperial Metals’ Red Chris operation, south of Dease Lake in the traditional territory of the Tahltan First Nation, and Anglo American’s Roman mine, near Tumbler Ridge, are scheduled to begin production this year.

Imperial Metals, which already operates the Mount Polley mine in British Columbia and has an interest in two other operations in the province, plans to start commissioning of the $500-million Red Chris operation in May. The mine development at Red Chris includes a 30 000 t/d milling operation.

At the Roman site, the first sod was turned in August last year. The mine will be an expansion for the Trend mine, extending the life of the existing operation by 16 years. The completed expansion will produce up to 2.5-million tonnes of metallurgical coal per year. Diversified mining major Anglo American owns the project through its Peace River Coal subsidiary.

“The British Columbia mining industry continues to be a major economic driver in this province. Many new jobs at operating mines were created this past year – these are high-quality jobs that support our families and help build strong communities for many years to come,” Bennett says.

He reports that improvements at a number of operating mines in 2013, have ensured jobs for hundreds of workers. For instance, Taseko’s Gibraltar mine, in the Cariboo, and Teck’s Line Creek, in the Kootenays, have received Mines Act permit amendments that resulted in almost $400-million in investment and ensured jobs for 650 workers.

Employment in the mining industry has grown significantly since 2001, when 14 700 people were employed in mining. In 2012, more than 30 000 people earn a living in the mining, mineral exploration and related sectors.

In 2012, mining was valued at over $8.3-billion to British Columbia's economy and exploration was recorded at $680-million, a 47% increase over the previous year and the highest ever. With exploration spending remaining strong in 2013, mining remains one of the province's more important economic drivers.

The BC Jobs Plan’s goal to see the opening of eight new mines and the expansion of nine existing operations by 2015, will result in an increase in yearly mine-operation revenue of $1.6-billion and bring in over $150-million a year in government revenue. It will also have a significant impact on employment in the province and is expected to create 2 000 construction jobs, add 2 000 new direct jobs and 3 000 indirect jobs during the operating life of the mines, as well as sustaining 12 500 existing jobs, of which 5 000 are direct jobs.

Bennett reports that industry and the province continue to work closely with First Nations on resource development, setting out clear expectations for the consultation process and working toward more revenue-sharing agreements. Mining employs more First Nations than any other industry in British Columbia, the Minister says.

The province has signed 10 economic and community development agreements with First Nations to date. In 2013, the first cheques were delivered to First Nations for agreements with New Afton, Copper Mountain and Highland Valley mines.

Visit Imperial Metals at PDAC 2014 at booth #3123 and Anglo American at booth #2325.

Edited by Creamer Media Reporter

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