Thompson Creek Metals has approved a $350 million cost increase in the Mount Milligan gold and copper mine in northern B.C. to $1.265 billion.
The increase is attributable to design improvements, increases in labor costs, and the cost of steel, concrete and other materials, said the company. The cost is also as a result of changes in foreign exchange rates.
"Mt. Milligan is an important building block for our company, both in terms of growth and diversification," said Thompson Creek Metals chairman and CEO Kevin Loughrey. "We believe that, notwithstanding the capital increase, the economics for the project are still extremely attractive, and our liquidity and capital resources are sufficient to complete the construction of the Mt. Milligan mine," he said.
The mine, 155 kilometres northwest of Prince George, is under construction now.
By the summer, the company expects to have more than 600 workers on the site.
The mine is scheduled to begin production in late 2013.
