Teck, NovaGold halt work on $5B Galore Creek Mine
Nov 26, 2007 | 03:16 PM
| Sean Barry
Teck Cominco Ltd. and NovaGold Resources Inc. are suspending construction at the Galore Creek copper, gold and silver project in northwestern British Columbia because of high capital costs.
The cost to bring Galore Creek into production had reached Canadian $5 billion ($5.1 billion), the Vancouver, British Columbia-based miners said in a joint statement Monday. Combined with reduced operating margins because of the strong Canadian dollar, the 50-50 venture had become uneconomical, they said.
The largest portion of the cost increase involved a complex plan to build a tailings dam and water management structures that would have extended the construction schedule by 18 to 24 months. The project also had been hit by the rapidly escalating costs affecting major construction projects due to the overall inflationary pressures on wages and materials.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.