Taseko Mines Ltd. (TSX:TKO) is again trying to get federal approval for what was originally an $800 million Prosperity mine. This time, the mine could cost $1.1 billion.
Federal Environment Minister Jim Prentice announced November 2 that Taseko’s Prosperity mine near Williams Lake could not proceed because the copper and gold mine would make nearby Fish Lake a tailings dump. That has not got Taseko executives down, though.
CEO Russell Hallbauer announced February 21 that Taseko now has a revised plan that addresses concerns Prentice raised.
The new proposal:
- greatly reduces environmental impact;
- preserves Fish Lake and its aquatic inhabitants; and
- enables all mine operations and related components to be contained within a single watershed.
Higher prices for copper and gold are responsible for making the project viable while saving Fish Lake, Hallbauer said.
“In 2005, when we initiated engineering work and economic and environmental studies on our Prosperity project, the long-term price projections for copper and gold were $1.50 per pound and $550 per ounce, respectively. Using these metal price projections, we put forward the best plan to ensure the project was economically viable. This plan involved the elimination of Fish Lake,” Hallbauer said in a release.
“The assumptions used were consistent with the environmental assessment terms of reference and the project was advanced with both provincial and federal agencies as well as with First Nations groups.”
Hallbauer went on to say that today’s prices for copper ($2.50 per pound) and gold (nearly $1,400 per ounce) makes the Prosperity mine viable even if it assumes an extra $300 million in costs for preserving the environment.