The government of British Columbia and Highland Valley Copper have signed a memorandum of understanding that is expected to result in development of a copper refinery at Highland Valley’s open-pit mine site, southwest of Kamloops.
The refinery would employ new technology, developed by Cominco Engineering Services (CESL), to produce pure copper without generating any hazardous emissions. About 100,000 tonnes of copper metal would be produced at the new plant on an annual basis.
Highland Valley Copper is a partnership among Cominco (CLT-V), with a 50% interest; Rio Algom (ROM-T), with 33.6%; Teck (TEK-T), with 13.9%; and Highmont Mining, with 2.5%.
Several other B.C. copper mines have been identified as potential suppliers to the refinery. The plant would create an estimated 110 jobs and extend the mine life of Highland Valley to 2012.
“If the refinery is considered feasible, it would represent a major technological breakthrough that could significantly improve the economics of the existing operation and development of known reserves,” says David Johnston, president of Highland Valley Copper.
B.C. Premier Glen Clark, is even more bullish: “This technological development could underpin a major revival in the B.C. mining industry similar to what occurred in the 1960s and early 1970s. If successful, the process could substantially improve the economics for several other B.C.
copper deposits whose grades and transportation costs currently make them marginal.”
The process is designed for the hydrometallurgical extraction of copper and nickel from sulphide concentrates based on pressure leaching and solvent extraction-electrowinning. A pilot plant has been operating successfully for several years.
CESL says the process is distinguished by low capital and operating costs, almost total recovery of the metal values, and zero discharge of effluents.
The memorandum of understanding is part of the government’s Power for Jobs initiative, which Clark says “provides for the negotiation of competitively priced power for new investment projects.”
The Highland Valley mine is a large-tonnage, low-grade porphyry copper-molybdenum deposit, with reserves of 457 million tonnes grading 0.42% copper. The mine processes about 125,000 tonnes of ore daily.
In 1997, the mine produced 391,951 tonnes of copper sulphide concentrates containing 346 million lbs. copper and 3,711 tonnes of molybdenum sulphide concentrates containing 4.3 million lbs. moly. Sales last year amounted to $380.4 million.
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