Galore Creek decision could hit other Canadian projects

Nov 30, 2007 | 01:41 PM |

The suspension of the Galore Creek copper and gold project in British Columbia has put plans for a Canadian $400-million power line in limbo, threatening the economics of several other prospective mining projects in the province.

The British Columbia government agreed in October to build the 190-mile transmission line, with the owners of Galore Creek contributing $158 million toward the costs.

But NovaGold Resources Corp. and Teck Cominco Ltd. announced a week ago that they are halting work on Galore Creek after construction cost estimates soared to $5 billion from $2.2 billion and the strong Canadian dollar had reduced anticipated operating margins (AMM, Nov. 26).

That decision indefinitely puts the transmission line on hold and has thrown into doubt the viability of several other smaller mining projects in northwestern British Columbia, where industrial infrastructure is relatively undeveloped.....





Latest Pricing Trends

Poll

Are you stocking more inventory today than 18 months ago?

Yes
No


View previous results