Canadian miner Taseko Mines is ready to start making initial payments on key, long-lead items for the solvent-extraction and electrowinning (SX/EW) plant at the Florence copper project, in the US, as a permitting decision draws near.

Making a financial commitment for the processing equipment associated with the SX/EW plant would allow the project to efficiently advance construction activities upon receipt of the underground injection control (UIC) permit.

The US Environmental Protection Authority (EPA) has indicated to Taseko that the permit would be issued next month, president and CEO Stuart MacDonald said on Thursday.

“[It is] later than we would have liked, but the important point here is that there are no issues arising as the agency completes its final internal reviews,” he said on a conference call discussing the group’s second-quarter results.

The Florence project has an 18-month construction schedule and MacDonald believes that early 2023 remains “very achievable” for commercial production to start.

With a cash balance of $226-million at the end of June, Taseko has the majority of funding required for the construction of the commercial facility at Florence.

Commenting on copper demand, particularly in light of US President Jo Biden’s announcement on Thursday that half of the new US auto fleet would be electric by 2030, MacDonald said that the Florence project “fitted well” into the US copper growth story.

“There is clearly demand for copper in the US and our Florence project is going to fit perfectly into that market with a major new supply of refined copper in the southwest.”

The Florence deposit contains 2.5-billion pounds of copper and Taseko plans to produce an average of 55-million pounds of copper a year for the first six years and 85-million pounds a year for the 20-year life-of-mine.

At a conservative copper price of $3/lb, Florence would generate an aftertax internal rate of return of 37% and an aftertax net present value of $680-million, at a 7% discount, with a 2.5-year payback period.

Meanwhile, Taseko reported second-quarter earnings from mining operations before depletion and amortisation of $54.5-million and adjusted net income of $9.9-million, or $0.04 a share.

The Gibraltar mine, in British Columbia, produced 26.8-million pounds of copper in the second quarter and sold 26.7-million pounds, resulting in revenue of $105.5-million. The average LME copper prices were $4.4/lb in the quarter.