The new mill at the Endako Mine was the centre of a celebration Friday.
Dignitaries converged on the site, 175 kilometres west of Prince George, where the molybdenum mine's owners spent $650 million on a new mill that nearly doubles the daily processing capacity to 55,000 tonnes. The mine, now 42 years old, is expected to last another 18 years,
"The new mill at Endako secures jobs and economic development in the region and extends our long history as an employer in north central B.C.," said Thompson Creek Metals Inc. CEO Kevin Loughrey. "This event gives us an opportunity to thank our employees and the team that brought this new, state-of-the-art mill into production."
Thompson Creek Metals holds a 75-per-cent stake in the mine. Sojitz Corporation, a Japanese company, holds the other 25 per cent interest.
The mine will generate $90 million to $100 million annually in economic activity such as direct wages, purchases and taxes for the region, according to the provincial government. It directly employs 420 workers and provides indirect employment for an additional 600.
Provincial politicians were also on hand.
"Ten years ago, the mining industry in B.C. was looking a little downtrodden," Jobs, Tourism and Innovation Minister Pat Bell said. "These days we're seeing a definite resurgence and that's leading to exceptional growth in good-paying, long-term mining jobs for British Columbians across the province."
The event was a respite from some turbulence for Thompson Creek, after the Denver-based miner saw its stock drop noticeably following news in May that the cost of its Mount Milligan copper and gold project between Mackenzie and Fort St. James were about 20 per cent higher than first expected.
Facing as much as a $1.5-billion bill for the project, Thompson Creek then turned to the markets to raise $412 million.
The first offering raised $200 million through senior notes due in 2019 but the second was an offering of tangible equity units that is to be repaid as a combination of debt and equity that could dilute current shares by as much as 28 per cent.
However, analysts remain confident that Mount Milligan is now on budget and on schedule to open late next year.
Average annual production over the current 22-year mine life is expected to be 81 million pounds of copper and 194,000 ounces of gold.
Production in years one through six is expected to be higher at 89 million pounds of copper and 262,000 ounces of gold per year.
