Thompson Creek raises Endako molybdenum mine costs

Dec 07, 2009 | 12:00 PM | Anne Riley

Thompson Creek Metals Co. Inc. has raised cost estimates for its Endako Mine expansion by more than $100 million, claiming that the increased expenditures are necessary if the company hopes to meet its previously announced molybdenum production targets.

The cost of expanding the Endako Mine in Fraser Lake, British Columbia, is now expected to be about Canadian $498 million ($472.9 million), with Thompson Creek's 75-percent share expected to cost about C$374 million ($355.2 million), the company said. Previous estimates had pegged the total expansion cost at C$373.6 million ($354.8 million), C$280 million ($265.9 million) of which would be footed by the Toronto-based company.

The 33-percent increase in expansion costs will fund an enhanced pebble crusher circuit and automation system, as well as a new, larger mill building. Under previous expansion plans, the company would have constructed a smaller-scale mill and connected it by piping to the old mill.

The updated expansion design allows for the complete replacement of the existing 45-year-old mill. Once the new mill is operational, the old mill will be mothballed for use in event of a future expansion, the company said.....