Thompson Creek Metals Cuts Stripping Plans
The company expects to restart strip-ping of Phase 8 of the mine plan when market conditions warrant.
Kevin Loughrey, chairman and CEO of Thompson Creek, said, “As a result of continuing weakness and uncertainty in the world economy, we have decided to reduce our costs, strengthen our balance sheet, and conserve cash. This will allow for greater certainty in accessing our existing financings in order to complete the development of our Mt. Milligan cop-per-gold project in British Columbia, while we preserve the assets at Thompson Creek until market conditions strengthen.”
The Thompson Creek mine is expect-ed to produce 20 million–22 million lb of molybdenum in concentrate in 2013 and 17 million–19 million lb in 2014. Assuming stripping is not restarted prior to 2015, cash costs are expected to be approximately $4.75 to $5.75/lb in 2013 and $5.00 to $6.00/lb in 2014. If stripping has not recommenced by 2015, the company plans to place the mine on care and maintenance at that time. If the company decides to recommence strip-ping prior to 2015, it will revise its guid-ance with respect to costs, but it expects that molybdenum production guidance should not be affected.
Thompson Creek Metals’ Langeloth roasting facility in Pennsylvania will continue to treat material from the Thompson Creek mine, third party-pur-chased concentrates, and tolled molyb-denum concentrates.