VANCOUVER – Taseko Mines Ltd. (TSX:TKO) plans $ 134 million in capital spending this year for the Gibraltar copper and molybdenum mine in British Columbia, positioning the company for growth in 2013, the company said Wednesday.
The Phase 3 expansion, which began last spring and is on track for completion by the end of this year, is projected to increase Taseko’s share of copper production to 140 million pounds per year.
Copper is an important base metal used widely to make everything from electronics to electrical wiring to industrial equipment. Global supplies have been tight and prices relatively high due to strong demand in Asia and elsewhere.
“A key strategic priority for Taseko in 2012 will be positioning the company for growth in 2013 and beyond. This priority includes the GDP3 project build-out and the near-term production growth it will provide,” said Russell Hallbauer, Taseko’s president and chief executive officer.
“The project is on budget and on time for a December 2012 completion.”
He added that 2012 will also be “pivotal” for two Taseko development projects, the Aley niobium project, 140 kilometres north of Mackenzie, B.C., and New Prosperity, an undeveloped copper-gold deposit in northern British Columbia.
Taseko says it has budgeted $ 31 million to advance the Aley and New Prosperity projects.
New Prosperity has been controversial and the company is reworking is development plan for the project to reduce its potential environmental impact.
“The free cash flow from our 75 per cent share of Gibraltar production will support Taseko’s Aley and New Prosperity project expenditures,” Hallbauer added.
“This year will be pivotal for our two development projects. We expect to complete a feasibility study on Aley in the fourth quarter of 2012 and the recently announced environmental assessment process for New Prosperity is scheduled to complete in November 2012.”
Local news from metronews.ca/vancouver
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