Thompson Creek Metals expands its Endako molybdenum mine north of Prince George
B.C. gives tax breaks and speeds up permits in an attempt to create mining jobs
The new and expanded Endako mine is located near Fraser Lake, 100 miles northwest of Prince George. — Photo: Endako Mines Under the B.C. Jobs Plan, t
The new and expanded Endako mine is located near Fraser Lake, 100 miles northwest of Prince George. — Photo: Endako Mines
Under the B.C. Jobs Plan, the province of British Columbia will open eight new mines and expand a total of nine existing mines by 2015. One of four mines already undergoing expansion is the Endako, a molybdenum mine located near Fraser Lake, 100 miles northwest of Prince George.
On March 9, 2012, the Minister of Energy and Mines, Rich Coleman, announced that Endako has been issued a Mines Act permit amendment. Molybdenum is a type of coal ore which is used in the production of steel, particularly stainless and construction-grade steel.
This means increased production, approximately 160 new jobs and the ability to sustain a total of 400 employees in the north.
“The expansion of the mine will amalgamate the three pits,” said a ministry spokesperson. “It will also result in a major upgrade to the mine's 42-year-old mill and will create a new facility that will nearly double the current processing capacity to 55,000 tonnes. The expansion's projected capital cost is approximately $600 million.”
Processing capacity at Endako is approximately 31,000 tons of ore per day. In April 2008, the corporation began an expansion and modernization project that would increase the mill capacity to 55,000 tons per day. While the expansion project was suspended in December 2008 in response to the economic downturn, it was resumed in August 2009. The Endako’s mining reserves are sufficient to continue operations until approximately 2028.
Not only will this amendment provide additional jobs, it will help 36 displaced mill workers.
“The Endako expansion has been able to provide an employment opportunity for the 36 displaced mill workers who were negatively affected by the recent fire and explosion which closed the Babine Forest Products mill,” said a ministry spokesperson. “The workers will help to start up the new mill, and these jobs may lead to permanent employment.”
The expansion will generate approximately $90 to $100 million annually in economic activity such as direct wages, purchases and taxes.
"The expansion of the Endako mine will continue to provide well-paying, stable jobs in this area,” said Coleman. “The B.C. government is committed to working with industry to ensure that mining jobs are available in communities across the province. Tax revenues from mines provide much-needed funding for essential infrastructure and social programs that benefit all British Columbians."
Kevin Loughrey, CEO of Thompson Creek Metals, said, “Our employees, contractors, and suppliers have performed an outstanding job meeting the many challenges necessary to reach operational and commercial production so quickly. We continue to make significant progress and ramp up production, and we anticipate full production will be achieved in the second quarter of 2012. Once at full production, the Endako mine is expected to increase molybdenum production from approximately 10 million pounds per year to approximately 16 million pounds per year."
According to the ministry, a New Mine Allowance provides the equivalent of a 133.3 per cent deduction of capital costs for mines that commence or expand production before January 1, 2016.
