Thompson Creek Metals Co. Inc. reported yesterday that the commissioning of its new Endako mill near Fraser Lake, BC is complete and that commercial production was achieved on Feb. 1.
For the first five days of February, the new mill was running at or above its design capacity of 55,000 tpd, a 77% increase over the old mill’s capacity of 31,000 tpd.
The construction of the regrind circuit for the new mill is still in process, the Denver-based company said, and is expected to be completed by the end of the first quarter. In the interim, the company is utilizing the cleaner and regrind circuit in the old mill.
Thompson Creek also reaffirmed 2012 production guidance for its 75% share of the Endako mine of 10 million – 11 million pounds of molybdenum and cash cost guidance of $8.25 – $9.25 per pound. Moly is currently selling for about $14.79 on the LME, according to metalprices.com.
“We are extremely pleased to have achieved the full design tonnage for the new mill just 20 days into the commissioning and start-up process,” said Kevin Loughrey, chairman and CEO of Thompson Creek.
“Our employees, contractors, and suppliers have performed an outstanding job meeting the many challenges necessary to reach operational and commercial production so quickly. We continue to make significant progress and ramp up production, and we anticipate full production will be achieved in the second quarter of 2012.
“Once at full production, the Endako mine is expected to increase molybdenum production from approximately 10 million pounds per year to approximately 16 million pounds per year (100% basis),” Loughrey added.
With its somewhat larger, but wholly owned Thompson Creek mine in Idaho, the company will produce a total of 26 million – 28 million pounds this year and 30 million – 34 million pounds next year, at a per-pound cost of $8.40–$9.40 this year and $6.75–$7.75 next.
