Taseko fires up Arizona Florence copper mine

Canada’s Taseko Mines (NYSE: TGB; TSX: TKO) has begun wellfield operations at its Florence copper project in Arizona, marking the start of commercial production at one of the few new sources of refined copper coming online in the United States.

The company expects to produce its first copper cathode within three months. Its solvent extraction and electrowinning (SX/EW) plant reached substantial completion on Sept. 19, it said on Wednesday. Construction crews are demobilizing as commissioning proceeds in tandem with wellfield operations. 

President and CEO Stuart McDonald called the milestone a major achievement by the Arizona-based construction team, which completed the facility in under two years. 

“With copper prices approaching record levels, and a growing focus on security of critical mineral supply, the timing is ideal to bring on a major new source of refined copper inside the U.S.,” McDonald said in a release.

Taseko’s announcement comes as global demand for copper is projected to climb 24% by 2035, from 34.5 million tonnes a year to 42.7 million tonnes, according to consultancy Wood Mackenzie. Its latest Horizons report warns that additional disruptors could push annual demand up by another 3 million tonnes, roughly 40% of total growth, heightening market volatility.

Production at home

In British Columbia, Taseko’s Gibraltar mine is on track to produce between 120 million and 130 million lb. of copper this year. Third-quarter output reached 27.6 million lb. of copper, including 900,000 lb. of cathode and 560,000 lb. of molybdenum. This represents an increase of 39% and 211%, respectively, from the previous quarter. 

The company, which sold 26.3 million lb. of copper during the period, said mill throughput reached its design capacity of 85,300 tonnes per day. Copper recoveries averaged 77% in the third quarter and improved to 83% in September. Although head grades of 0.22% were below plan, they still represented a meaningful rebound from earlier quarters.

Taseko also holds two other copper assets in B.C.: the Yellowhead project, now in the environmental permitting stage, and a 78% stake in the New Prosperity property near Williams Lake.