What is the importance of Florence Copper within Taseko’s portfolio?

SM: As Taseko, we are focused on building a multi asset copper producer in North America. The company currently has one producing operation, our Gibraltar copper mine located in British Columbia (Canada) but has been focused on developing a second producing operation, Florence Copper. We are currently in the final stages of permitting and are looking forward to moving into construction within the next few months. Florence Copper is a critical project in the development of our company and has the potential to almost double our copper production and double our cash flow.

Can you elaborate on recent milestones achieved at Florence Copper, including the construction of a production test facility (PTF)?

SM: Taseko Mines acquired the Florence Copper project in 2014 and a major de-risking step was building a production test facility (PTF) in 2018. The purpose of the PTF was to demonstrate that we could produce copper profitably using the in-situ copper recovery process, and also to prove to the regulators that we could operate that mining method safely and in compliance with environmental requirements. The PTF was a great success on both of those fronts, and we have proven the technical feasibility and safety of the technology.

We needed to amend two permits to move from the test facility phase to a commercial-scale operation. We received the first one in December 2020 from the State of Arizona. We are now waiting to receive the final permit from the EPA, which we expect to have within the next few months. Meanwhile, we have started procurement of key equipment and have committed approximately US$60 million to secure these. As soon as we have our final permit in hand, we will be able to move smoothly into construction. We expect an 18-month construction period and to be in commercial production by 2024.

How does in-situ copper recovery technology differ from conventional mining?

SM: The big difference with in-situ copper recovery is that we are not digging a hole in the ground or tunnelling into the orebody but are actually drilling wells into the orebody and injecting a diluted sulphuric acid solution into it. We have a unique situation at Florence where the ore has already been fractured, and that situation allows our mining solutions to travel through the orebody and recover copper in solution. This copper-bearing solution then gets pumped to surface through recovery wells, where it is processed. Through this technology, we are able to produce pure refined copper right on site, ready to be shipped to the US domestic market without the requirement of further processing.

BB: The in-situ copper recovery method eliminates the need for haul trucks, a mill facility, and a tailings pond as there is no waste rock, and there is very little surface disturbance as you just have a wellfield. The total physical footprint of Florence Copper will be 212 acres. We use six times less fresh water than conventional open pit mining. In terms of energy, we use 71% less than a conventional mine while emitting 83% less carbon into the atmosphere.

Can you elaborate on the socioeconomic impact of Florence Copper?

BB: Over the life of mine Florence Copper will contribute about US$3.3 billion to the Arizona economy and US$2 billion in direct and indirect employment income for Arizonans. We will pay about US$500 million in state and municipal taxes. At full capacity we will create about 500 jobs in the county and 250 on site jobs.

What are the main opportunities and challenges of developing a project in Arizona?

BB: Government support for the sector has been strong given its role in providing jobs and contributions to the economy. However, developing a project is a long process. It not only involves discovering a deposit, but also showing it can be mined in an environmentally conscious way. This usually means a ten-year period before construction or operations can begin. The good thing about the permitting process in the US is that it is predictable, there is certainty, and the steps are clear.