Thompson Creek Metals Co. Inc. continued to spend money on two key projects in north-central B.C. as it posted a profit of $113.7 million for 2010.
The company spent $149.9 million in 2010 on its upgrade and expansion of its Endako molybdenum mine near Fraser Lake, east of Prince George. Another $15.4 million was spent on its recently acquired Mount Milligan gold and copper project northwest of Prince George. Thompson Creek, which purchased the Mount Milligan project with the buyout of Terrane Metals, plans to swing into full-scale construction on the $900-million mine this year.
The company -- which has offices in Denver, Colo. and Vancouver -- was helped by higher molybdenum prices, up 39 per cent from the previous year.
The company produced a record 32.6 million pounds of molybdenum in 2010, and sold a record 29.1 million pounds.
"Thompson Creek's 2010 financial performance was greatly improved from a year earlier mainly as a result of increased production, sales volumes and molybdenum prices," said Thompson Creek chairman and CEO Kevin Loughrey.
"We anticipate that over the balance of 2011 the price for molybdenum oxide will continue to be volatile, but will gradually increase with the expected improvement in worldwide molybdenum bearing steel production," added Loughrey.
The upgrade to the Endako mine is expected to help secure the approximately 260 jobs at the mine. The modernization also has spinoff benefits for Prince George, considered a supply and service centre for mines in the region.
The modernization project includes construction of a new mill to replace a 45-year old plant. The upgrade will also increase the mill capacity to 50,000 tonnes per day from 28,000 tonnes per day.
The Mount Milligan mine promises some of the first new heavy-industry jobs in the Prince George region in more than a decade. Such jobs, which are normally higher paying than those in the service sector, are considered important for the economy because they bring wealth-creating export dollars to the region.
As part of its purchase of Mount Milligan, Thompson Creek also secured financing of $311.5 million with Royal Gold Inc., which earned the right to purchase 25 per cent of the future mine's gold production.
Some preliminary development - including road upgrades - has started at the Mount Milligan gold and copper project.
The project is the closest new mine development to the city.
The mine, with a forecast life of 15 years, is expected to create 400 jobs. Between 200 to 600 workers will also be needed during the mine's two-year construction period.
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