Taseko is taking advantage of the provincial government’s offer to defer up to 75% of their power costs for five years for Gibraltar.
Brian Battison, Vice President of Corporate Affairs, says power is a very high expense for the mine.
“It’s probably the largest, single input component to the cost of mining is electricity. Gibraltar, at least in past years I think was the second largest consumer of electricity in the province-industrial customer.”
Taseko says the deferral program will reduce Gibraltar’ s annual spending by up to $18 million, and that at today’s copper price, the maximum deferral of 75% will apply.
Also joining the program, which was announced by the proincial government in February, is Imperial Metals’ Mount Polley Mine.
Imperial Metals says although joining the Payment Plan does not change mine operating costs and increases interest expense,it does however provide the Company with increased liquidity when copper prices are below $3.40 per pound