Taseko Mines has taken steps to protect the price it can sell its copper production in 2012.
The company, which operates the Gibraltar mine south of Prince George, has hedged bout 90 per cent of its 2012 copper production to ensure a minimum selling price of $3.50 US per pound.
Copper prices have increased from the $1 level in 2009 to above $4 today, but have experienced volatility recently, including dropping from a high of $4.25 earlier this year to just above $4.
"This hedge transaction was implemented to mitigate margin risk, as we have seen ongoing volatility in commodity prices over the past six months causing heightened concerns on copper price stability," said Taseko president and CEO Russell Hallbauer.
Remaining hedges in 2011, combined with the 2012 hedges, guarantees the company's revenue stream for the next 18 months, said Hallbauer.
As the company has a major capital project underway, as well as planning on two others, it is prudent to secure the revenue stream, said Hallbauer.
Taseko has started a $325 million expansion at Gibraltar near Williams Lake, which will increase copper capacity at Gibraltar by 90 per cent.
The company has also resubmitted an application to the federal government for its controversial $1-billion Prosperity gold and copper mine, also in the Williams Lake area.
Taseko is also has a feasibility study underway on its Aley Niobium project, 140 kilometres north of Mackenzie.
