The Endako Mine west of Prince George has been given the green light for a $600 million expansion that will create an estimated 160 new jobs.
The molybdenum mine, which is owned by Thompson Creek Mining Ltd. (TSX:TCM) and Sojitz Corporation, has received a Mines Act permit amendment from the Ministry of Energy and Mines.
Endako, which is 100 kilometres west of Prince George, near Fraser Lake, has been in continuous production since 1965.
The planned expansion will amalgamate the mine’s three pits. It will also include a major upgrade to the mine’s 42-year-old mill and a new facility that will nearly double Endako’s processing capacity, according to a ministry press release.
The expansion will generate an estimated $90 million to $100 million annually in economic activity.
The Endako expansion will also provide employment for some of the 36 workers idled by the recent fire and explosion at the Babine Forest Products mill in Burns Lake. The workers will help to start up the new mill and might end up with permanent employment, according to the press release.
“I am particularly pleased to see Endako working with the community that was so devastated by the fire at the Babine Mill,” said Premier Christy Clark.
Thompson Creek CEO Kevin Loughrey said, “We continue to make significant progress and ramp up production, and we anticipate full production will be achieved in the second quarter of 2012.
“Once at full production, the Endako mine is expected to increase molybdenum production from approximately 10 million pounds per year to approximately 16 million pounds per year.”
Molybdenum’s ability to withstand extreme heat without expanding or softening makes it valuable in a range of high-heat processes, including steel-making.
