Government of Canada pledges to invest C$500 million in Red Chris block cave development
Newmont Corporation has welcome a C$500 million ($353 million) investment from the Government of Canada to support the development of a block cave operation at the Red Chris mine in British Columbia, Canada.
It stated: “As we advance through our approval process toward a final investment decision, this commitment strengthens the business case for the development of a world-class copper-gold operation.”
The prefeasibility study on this development outlined the potential to produce 80,000 t of copper and 316,000 oz of gold per year for six years. This was based off an initial mineral reserve estimate of 8.1 Moz of gold and 2.2 Mt of copper.
Newmont is currently completing a definitive feasibility study for the project, with the mining company saying it expects that the project would create more than 1,800 jobs during construction, sustain a total approximate workforce of 1,500 peak-season operational roles, and increase Canada’s copper production by an estimated 15%.
Newmont added: “The project is expected to extend the life of the current Red Chris mine by approximately 14 years and sets the foundation for decades of potential additional mining. It represents a significant opportunity to create long-term value for Newmont’s shareholders, strengthen critical mineral supply chains and deliver long-term benefits for local communities, Indigenous partners, British Columbia and Canada.”
Just last month, the Province of British Columbia granted key authorisations approving the transition of Red Chris from open-pit operations to a block cave mine.
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