Taseko Mines began to develop a comprehensive, two-part expansion and modernization project to increase production at British Columbia�s Gibraltar Mine in 2004.

Premier Business Partners:

Quadra Chemicals CAC Industrial Equipment Ltd. Wenco Cullen Diesel Wolftek Industries Inc. Parker Hannifin EB Horsman L&H Industrial Luff Industries

After operating as a successful copper-molybdenum mine for more than 35 years, British Columbia’s Gibraltar Mine will benefit greatly from major reinvigoration. Although its production was halted by a former owner in 1999 due to low copper prices, Vancouver, British Columbia-based Taseko Mines Ltd. recognized a key opportunity and purchased the mine in 2000. After restarting the mine in 2004, the company began to develop a comprehensive, two-part expansion and modernization project to increase production.

After restarting the operation in 2004, Gibraltar’s daily milling rate averaged 36,000 tons per day, Manager of Mining Martin Kostuik says. But, after the updates are complete, the mill capacity will increase to 55,000 tons per day. “The whole idea is to modernize this vintage-1972 processing plant and take advantage of the opportunity to achieve higher production,” he says.

The year-and-a-half-long, $130 million (Canadian) project is nearly finished, and Kostuik says the results are already noticeable. “We’ve just completed the first phase of the expansion, and the project went quite smoothly,” he says. “To complete this major project on-time and on-budget, while operating the mine and producing copper, was an extremely challenging task.”

The expansion will include the modernization of the mine’s concentrator, which was built in 1971, according to Taseko. Phase 1, completed in 2007, includes the expansion of the mine’s grinding circuit, and a replacement of the flotation recovery systems. “The grinding capacity will be increased by adding a large, semi-autogenous grinding (SAG) mill to the front end of the concentrator, which will also improve the efficiency of the present mill and crushing system,” Taseko adds.

The second phase, set to be completed at the end of 2008, will allow the SAG mill to increase its capacity. Taseko says the second phase of the expansion will also include installation of:

• Pebble crushers

• Tailings pumping systems

• Regrind mills

• Cleaner flotation cells

• Pressure filters

• Driers
  

Once the project is fully completed, the mine’s annual production will average 115 million pounds of copper and 1.4 million pounds of molybdenum over the balance of its 19-year mine life. “This additional throughput will also reduce the long-term operating costs at Gibraltar,” Taseko says. “Both phases of expansion and modernization, plus additional equipment and associated infrastructure, are estimated to cost approximately $130 million (Canadian).

“There are very few mining companies that have the ability to add incremental capacity at such a low capital cost in such a short timeframe.”

Operating Strategies
Having a declining cost profile is definitely opposite to what most mining operations are facing today, according to Kostuik.

“For many of our competitor mines, escalating operating costs are a major issue,” he says. “Costs are increasing for almost every piece of equipment and supplies that are used in the operation, from electricity to diesel fuel, to metal and rubber.”

Taseko’s lean executive team is able to overcome many of these issues. Kostuik says the management team is “adaptive” and able to make important decisions quickly.

“We’ve made some very key decisions about purchasing equipment in a short amount of time, which allowed us to get better prices,” he explains.