Taseko Mines announced its intention to acquire the remaining 12.5% interest in the Gibraltar mine, Canada’s second largest open pit copper operation, from current owners Dowa Metals & Mining and Furukawa.
Taseko Mines becomes sole owner
According to the company’s president and CEO, Stuart McDonald, this acquisition will result in a 14% increase in Taseko’s attributable copper production, while improving its cash flow during the execution of the Florence copper project in Arizona, USA.
The definitive agreement involves a payment of C$117 million over ten years for Dowa’s and Furukawa’s shares in Cariboo Copper Corp, giving Taseko full ownership of the Gibraltar mine, located in south-central British Columbia.
In addition, the contract grants Taseko additional purchase rights by taking back the Cariboo property, potentially resulting in significant cost savings, McDonald noted. The acquisition process includes an upfront payment of C$5 million to Dowa and Furukawa after the closing of the deal, with possible contingent payments depending on copper prices and Gibraltar’s cash flow.
Production levels at the Gibraltar mine property
McDonaldhighlighted the positive relationship established with Dowa and Furukawa over the past 14 years, describing the exit of the long-term partnership as mutually beneficial, given the withdrawal of both groups from their mining and copper smelting and copper smelting.
The company celebrated record revenues of US$525 million in 2023 from the Gibraltar mine, marking a 34% increase over the previous year. Some production data detail that the mine reached 122.6 million pounds of copper in 2023, exceeding the company’s original guidance and registering an increase of 26% over 2022.with an average copper recovery rate of 82.6% and a head grade of 0.25%.
With production in Florence scheduled to begin in the fourth quarter of 2025, Taseko is poised to consolidate its position as a major player in the copper mining industry.
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Source and photo: Taseko Mines
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