TORONTO (miningweekly.com) – Base metals producer Taseko Mines expects to benefit from recently announced planned support for struggling mining companies in British Columbia.
Premier Christy Clark recently revealed that government was working on a plan to enable struggling mining companies to defer some of their “very considerable” electricity costs until mineral prices had rebounded.
Taseko, which owns Gibraltar copper/molybdenum mine in the province, on Tuesday announced that it expected to benefit from a five-year power rate deferral programme announced by the government of British Columbia.
"Electricity is one of Gibraltar's most significant expenses, accounting for nearly 10% of the mine's total operating costs. This cost deferral programme has the potential to reduce Gibraltar's annual spending by up to $20-million, or roughly C$0.15/lb of copper production, at the current copper price of about $2.10/lb, effective this month,” advised Taseko president and CEO Russell Hallbauer.
Meanwhile, details of the programme that would be delivered through the province's crown corporation BC Hydro, were still to be disclosed.