Endako Expansion a Go

By 250 News

Prince George, B.C. -  Some good news for workers at the Endako Mine.  The majority share holder, Thompson Creek Metals Company Inc. has announced that its Board of Directors has approved plans to expand  the   Fraser Lake area mines  production from 28,000 to 50,000 tonnes of ore per day beginning in 2010.

This is a $373.6 million  dollar project which Opinion 250 first  reported last November.(click here for previous story)

"Our estimates show that the Endako expansion will add to Thompson Creek’s profitability and provide an attractive rate of return in the coming years even using price assumptions that are well below the current price of molybdenum," said Kevin Loughrey, Chairman and Chief Executive Officer.

"The expansion project also involves a needed modernization of the mill, which has been in operation since 1965, and ensures we will have an efficient processing operation at Endako that will be beneficial for the long term."

The expansion is expected to  ad 16 years to the life of the mine.

The Company expects its capital expenditures related to the expansion project during the period 2008 to 2010 will be C$280 million (75% of the feasibility study estimate of C$373.6 million) plus ongoing sustaining capital spending. The Endako Mine is operated as a joint venture with Thompson Creek holding a 75% interest and Sojitz Corporation, a Japanese company, holding the remaining 25% interest.


The mill expansion will  create a more cost-efficient mill with fewer mechanical items and with the ability to handle a variety of ore more easily and achieve greater recoveries than the existing mill.

The capital expenditures will also include the acquisition of new trucks and other equipment to supply the mill with a higher volume of ore.

    

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