Newmont’s Red Chris underground expansion gets regulatory green light in BC

Newmont’s (NYSE: NEM, TSE: NGT) Red Chris mine in British Columbia has received crucial regulatory approvals, paving the way for a transition from open-pit mining to an underground operation and extending its lifespan into the mid-2040s. 

The province’s OKs include an amended Environmental Assessment Certificate, achieved through a consent-based process with the Tahltan Nation, as well as an amended Mines Act permit, the company said Friday. The site about 80 km south of Dease Lake and 1,050 km north of Vancouver 

Newmont is completing a feasibility study ahead of a final investment decision this year on a proposed underground expansion at Red Chris, where the last published capital-cost estimate was $2.6 billion (US$2.1 billion then) in a 2021 prefeasibility study by Newcrest, now part of Newmont.

“With significant mineral endowment, availability of clean hydroelectric power, port access, supportive governments, and strong Indigenous economic leadership, northwest British Columbia is emerging as a world-class mining district,” Newmont CEO Natascha Viljoen said in a release. “We are proud to have advanced this project through a consent-based framework with the Tahltan Nation.

The Red Chris copper-gold porphyry deposit in British Columbia’s Golden Triangle is a massive mineral endowment containing an estimated 20 million oz. of gold and 13 billion lb. of copper across its measured, indicated, and inferred resources. In production since 2015, Red Chris is a joint venture owned and operated 70% by Newmont and 30% by Imperial Metals (TSX: III; US-OTC: IPMLF). 

2023 deal

Newmont, the world’s largest gold miner, increased both its presence in the Canadian province and its exposure to copper when it acquired Newcrest in a $17 billion deal in 2023. The acquisition brought the Bruce Jack mine into its portfolio along with Red Chris, and the miner has said it is planning a lengthy presence in the province’s northwest, which is rich in gold and copper. 

“The Red Chris expansion highlights how partnership agreements with First Nations and a predictable process are creating the certainty needed to move major projects in British Columbia forward,” Premier David Eby said in a statement Friday.

“That confidence is driving historic private-sector investment in B.C. that is creating good job opportunities and family-supporting jobs, and the funding needed to deliver strong public services for people across the province.”

The approvals are a vote of confidence in B.C.’s mining industry, Michael Goehring, CEO of the Mining Association of British Columbia, said in a release.

“The Red Chris block cave project is the sixth major B.C. mine or mine extension permitted in the last 18 months,” Goehring said. “While this is great news, we urge the provincial government to build on this momentum by accelerating permitting for more mines to make B.C.’s and Canada’s economy stronger.”