Thompson Creek Metals
Encyclopedia
Thompson Creek Metals Company ( ) is a pure play
molybdenum mining company, one of the world's largest with two operating mines (which include processing facilities), five mines in the developmental stage and a central processing facility in Pennsylvania (Langeloth, Roasting (metallurgy)
). More recently it expressed interest in diversifying its business by adding other types of minerals to its asset base; on July 15, 2010 the company made a significant move into the non molybdenum mining market by agreeing to a US$623.5 million deal that would give it copper and gold exploration company Terrane Metals Corporation (and with it the Mt. Milligan project in BC). Although the deal for Terrane Metals Corp was initially made in July it didn't receive final court approval in British Columbia until September 27; the deal was completed on October 27, 2010 (52% of Terrane was purchased from Goldcorp
). A third party has a ten year agreement with Thompson Creek to distribute and sell 20% of its products in Asia and Oceania effective January 2007. All operations are in the USA and Canada.
About 40% to 50% of global molydenum production comes as a by-product of copper mining. The company produced 23.261 million pounds of molybdenum in the first nine months of 2010 (about 60% from the Thompson Creek mine) 92.1% as much as it did during the entire 2009 fiscal year. Thompson Creek (mine) contributes 5% of global molybdenum output and 10% of molybdenum roasting capacity.
After acquiring Terrane Metals (and its $917 million 15 year mine life Mount Milligan property, 155 km NW of Prince George, British Columbia
) in October 2010 for about $700 million the company held significant reserves of copper and gold. During the purchase of Terrane Metals a side deal was made with Denver based miner Royal Gold
involving the sale of 25% of the gold produced by Mount Milligan during its entire mine life; that transaction helped Thompson Creek finance the Terrane deal by providing it with $226.5 million in cash and another $85 million during the mine's construction. Royal Gold is one of 16 companies listed on the Philadelphia Gold and Silver Index
.
) — Known as the Thompson Creek deposit it was discovered in 1968 by Cyprus Minerals Corporation
and operated from 1983 to 1992. The mine was sold in 1993 to Thompson Creek Metals Company, which began mining at the site in April 1994. The company has claims on over 22,000 acres of land (includes waste dumps). Currently, it operates as an open pit mine, and includes Bruno Creek Tailings Impoundment
, the second tallest center-line tailings dam in the world.
Endako Mine — 3 pit, open pit mine in central British Colombia (other 2 projects Berg and Davidson are west of it). Subsidiary Thompson Creek Holding owns 75% of the mine while Japanese company Sojitz Corporation
has the other 25%. The operation also involves processing the molybdenum ore into a disulfide
and then molybdenum trioxide through roasting. Expansion projects, which began in 2008 increased capacity by 77.4% (though expansions which include new mills will cut the mine life by 38.5% to 16 years).
), Berg (West Central BC
), Davidson (North West BC near the town of Smithers
) Howards Pass (Northern Canada) and Maze Lake (Kivalliq District, Nunavut
). Unlike the operating mines many of the projects are polymetal
lic resources.
Mount Emmons — Between the five projects Mount Emmons has the largest reserves of molybdenum; 94.2% more than Berg, 143% more than Davidson. Subsidiary Thompson Creek Metals Company USA has a controlling interest in the project (with an option to raise that to 75%) with the rest residing with US Energy Corp.
Mount Milligan — Copper and gold containing property located 155 km NW of Prince George, BC. Royal Gold owns 25% of the mine's life of mine gold production. There were concerns that the federal government of Canada would not approve its development on the basis of environmental concerns (especially since another one Prosperity Mine was not given approval), but in November 2010 it received federal approval. Canada's environmental minister Jim Prentice
credited the mine's minimal environmental impact design for its ability to win over support.
Howards Pass — Zinc, lead, and silver containing mine located at the border between the Yukon and North West territories. Selwyn Resources, US Steel Corporation, and Thompson Creek Metals share joint ownership.
Maze Lake — With Laurentian Goldfields (57% owner) Thompson Creek Metals (43% owner) conducts gold exploration.
Pure play
In financial management, a pure play is a company whose shares are publicly traded and that either has, or is very close to having, a single business focus. Coca-Cola is an example of a pure play in this context because it retails only beverages...
molybdenum mining company, one of the world's largest with two operating mines (which include processing facilities), five mines in the developmental stage and a central processing facility in Pennsylvania (Langeloth, Roasting (metallurgy)
Roasting (metallurgy)
Roasting is a step in the processing of certain ores. More specifically, roasting is a metallurgical process involving gas–solid reactions at elevated temperatures with the goal of purifying the metal component. Often before roasting, the ore has already been partially purified, e.g. by froth...
). More recently it expressed interest in diversifying its business by adding other types of minerals to its asset base; on July 15, 2010 the company made a significant move into the non molybdenum mining market by agreeing to a US$623.5 million deal that would give it copper and gold exploration company Terrane Metals Corporation (and with it the Mt. Milligan project in BC). Although the deal for Terrane Metals Corp was initially made in July it didn't receive final court approval in British Columbia until September 27; the deal was completed on October 27, 2010 (52% of Terrane was purchased from Goldcorp
Goldcorp
Goldcorp Inc. is a gold producer headquartered in Vancouver, British Columbia, Canada. Goldcorp has 16 operations and development projects in 6 countries across the Americas....
). A third party has a ten year agreement with Thompson Creek to distribute and sell 20% of its products in Asia and Oceania effective January 2007. All operations are in the USA and Canada.
About 40% to 50% of global molydenum production comes as a by-product of copper mining. The company produced 23.261 million pounds of molybdenum in the first nine months of 2010 (about 60% from the Thompson Creek mine) 92.1% as much as it did during the entire 2009 fiscal year. Thompson Creek (mine) contributes 5% of global molybdenum output and 10% of molybdenum roasting capacity.
History
Originally private Thompson Creek Metals first incorporated in Canada in 2000. On October 26, 2006 it was acquired by Canada based, publicly traded mining company Blue Pearl Mining Ltd for $575 million US, in addition to other payments worth as much as $125 million US depending on the price of molybdenum. Blue Pearl Mining Ltd then renamed itself Thompson Creek Metals Company Inc. in May 2007. Though all operations (as of late 2010) involve the mining and processing of molybdenum many of the company's projects also contain significant copper and gold reserves.After acquiring Terrane Metals (and its $917 million 15 year mine life Mount Milligan property, 155 km NW of Prince George, British Columbia
Prince George, British Columbia
Prince George, with a population of 71,030 , is the largest city in northern British Columbia, Canada, and is known as "BC's Northern Capital"...
) in October 2010 for about $700 million the company held significant reserves of copper and gold. During the purchase of Terrane Metals a side deal was made with Denver based miner Royal Gold
Royal Gold
Royal Gold is a precious metals company with royalty claims on gold, silver, copper, lead and zinc at mines in over 20 countries...
involving the sale of 25% of the gold produced by Mount Milligan during its entire mine life; that transaction helped Thompson Creek finance the Terrane deal by providing it with $226.5 million in cash and another $85 million during the mine's construction. Royal Gold is one of 16 companies listed on the Philadelphia Gold and Silver Index
Philadelphia Gold and Silver Index
The Philadelphia Gold and Silver Index is an index of eleven precious metal mining companies that is traded on the Philadelphia Stock Exchange. The index is represented by the symbol "XAU", which may be a source of some confusion as this symbol is also used under the ISO 4217 currency standard to...
.
Operating Mines
Thompson Creek Mine (near Challis, IdahoChallis, Idaho
Challis is a city in Custer County, Idaho, United States. The population was 909 at the 2000 census. The city is the county seat of Custer County.-History:...
) — Known as the Thompson Creek deposit it was discovered in 1968 by Cyprus Minerals Corporation
Cyprus Mines Corporation
The Cyprus Mines Corporation was an early twentieth century American mining company based in Cyprus. In 1914, Charles G. Gunther began prospecting in the Skouriotissa area after reading in ancient books that the island was rich in copper and noticing promising ancient Roman slag heaps in the area....
and operated from 1983 to 1992. The mine was sold in 1993 to Thompson Creek Metals Company, which began mining at the site in April 1994. The company has claims on over 22,000 acres of land (includes waste dumps). Currently, it operates as an open pit mine, and includes Bruno Creek Tailings Impoundment
Bruno Creek Tailings Impoundment
The Bruno Creek Tailings Impoundment is a tailings dam on Bruno Creek, southwest of Challis in Custer County, Idaho. It serves to store tailings for the nearby Thompson Creek Mine. At tall, it is the second tallest center-line tailings dam in the world. In 2008, Phase 8 of the mine was approved...
, the second tallest center-line tailings dam in the world.
Endako Mine — 3 pit, open pit mine in central British Colombia (other 2 projects Berg and Davidson are west of it). Subsidiary Thompson Creek Holding owns 75% of the mine while Japanese company Sojitz Corporation
Sojitz
is a trading corporation based in Tokyo, Japan. It operates in many industries, including construction, forestry, plastics, chemicals, mining, petroleum, textiles, and international trade. Sojitz also participates in joint ventures with foreign companies in Japan....
has the other 25%. The operation also involves processing the molybdenum ore into a disulfide
Molybdenum disulfide
Molybdenum disulfide is the inorganic compound with the formula MoS2. This black crystalline sulfide of molybdenum occurs as the mineral molybdenite. It is the principal ore from which molybdenum metal is extracted. The natural amorphous form is known as the rarer mineral jordisite. MoS2 is less...
and then molybdenum trioxide through roasting. Expansion projects, which began in 2008 increased capacity by 77.4% (though expansions which include new mills will cut the mine life by 38.5% to 16 years).
Projects
Thompson Creek shares ownership in most of the five properties with other companies (although it holds a controlling interest in them all). Though most of the properties have significant reserves of only molybdenum (Emmons, Davidson) at least one also has a significant amount of silver and copper (Berg). The five projects are Mount Emmons (near Crested Butte, ColoradoCrested Butte, Colorado
Crested Butte is a Home Rule Municipality in Gunnison County, Colorado, United States. A former coal mining town now called "the last great Colorado ski town," Crested Butte is a destination for skiing, mountain biking, and a variety of other outdoor activities...
), Berg (West Central BC
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
), Davidson (North West BC near the town of Smithers
Smithers, British Columbia
Smithers is a town located in northwestern British Columbia, Canada, approximately halfway between Prince George and Prince Rupert. Smithers is located in the Regional District of Bulkley-Nechako....
) Howards Pass (Northern Canada) and Maze Lake (Kivalliq District, Nunavut
Nunavut
Nunavut is the largest and newest federal territory of Canada; it was separated officially from the Northwest Territories on April 1, 1999, via the Nunavut Act and the Nunavut Land Claims Agreement Act, though the actual boundaries had been established in 1993...
). Unlike the operating mines many of the projects are polymetal
Polymetal
Primarily used in chemistry or mining, polymetal or polymetallic refers to a substance composed of a combination of different metals. When the substance contains only two metals the term bimetal is sometimes preferred .* A polymetallic ore is...
lic resources.
Mount Emmons — Between the five projects Mount Emmons has the largest reserves of molybdenum; 94.2% more than Berg, 143% more than Davidson. Subsidiary Thompson Creek Metals Company USA has a controlling interest in the project (with an option to raise that to 75%) with the rest residing with US Energy Corp.
Mount Milligan — Copper and gold containing property located 155 km NW of Prince George, BC. Royal Gold owns 25% of the mine's life of mine gold production. There were concerns that the federal government of Canada would not approve its development on the basis of environmental concerns (especially since another one Prosperity Mine was not given approval), but in November 2010 it received federal approval. Canada's environmental minister Jim Prentice
Jim Prentice
James "Jim" Prentice, PC, QC is a Canadian lawyer, and politician. In the 2004 federal election he was elected to the Canadian House of Commons as a candidate of the Conservative Party of Canada...
credited the mine's minimal environmental impact design for its ability to win over support.
Howards Pass — Zinc, lead, and silver containing mine located at the border between the Yukon and North West territories. Selwyn Resources, US Steel Corporation, and Thompson Creek Metals share joint ownership.
Maze Lake — With Laurentian Goldfields (57% owner) Thompson Creek Metals (43% owner) conducts gold exploration.
External links
- www.thompsoncreekmetals.com - Official website
- Thompson Creek Mine sale to close mid-October
- Grmike, Kumar Thompson Creek Metals Company Overview production, total processed, revenue, reserves and cash costs by mine and year.