Galore Creek Mine Closing In on Construction

By 250 News

It won’t be long before the Galore Creek Mine will start construction of roads to the site north of Stewart. “They have been mobilizing equipment already” says Agriculture Minister Pat Bell.  The project says Bell, has virtually completed its permitting process.

The development of that mine will have cost $2 billion dollars before a single ounce of gold or copper has been extracted.  “This is a huge project, a very real project, and a lot of the equipment, the training necessary for the people working on that site, will be coming right out of Prince George.”

During the recent B.C. Mining Association’s Annual Conference, the President of the Association remarked that while mining is booming in B.C., there is still too much time between exploration, and the actual start up of a mine. Bell says that has always been a concern “If a mine can develop its operation, pay down its capital and get into an operating position where they are no longer trying to return that capital cost, then there’s sustainability, even through the bottom end of the price cycle.  That’s the real key here, to get these projects up and running while there is a spike in the price cycle, but I don’t see much changing in the price cycle for the foreseeable future because of the increasing demand from China.”

The other major project that continues to move forward is the Mount Milligan project north of Mackenzie.  That project carries between $600 and $800 million dollars worth of construction and then a long term mine life that would employ 400 people.  Bell says the Mount Milligan project will likely  complete  the permitting  process in a couple of months, and may be in a position to start preliminary construction  before the end of this year, and full construction in 2008.

Earlier this week, Graymont announced it was starting the process to develop a limestone quarry near Giscome, but the process   that must be adhered to means the earliest date for possible start up would be late 2010.  “People understand there is an environmental process that must be followed.  People want to know that when you get into a major mining project you want to make sure you do it in an environmentally sound way. “

Bell says the time it takes to do the work just might be reduced in the future, “The Federal Government has just introduced a major projects office.   That’s not up and running yet, but we think that may have the potential to speed up the process.”

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