Canada commits $352M to Red Chris mine expansion in British Columbia

The Canadian government confirmed on Thursday C$500 million ($352 million) in financial support for the Red Chris Block Cave expansion project in British Columbia — part of a push to fast-track major mining projects in the country.

“We will invest $500 million to expand Red Chris mine, which will increase Canada’s annual copper production by more than 15%, support critical minerals demand for clean energy and manufacturing, and reduce greenhouse gas emissions by over 70% once operational,” it said in a statement.

The Red Chris porphyry deposit in BC’s Golden Triangle has a massive mineral endowment containing an estimated 20 million oz. of gold and 13 billion lb. of copper across its measured, indicated and inferred resources.

Newmont (NYSE: NEM, TSX: NGT), the world’s largest gold miner, holds a majority ownership and operates Red Chris in partnership with Canada’s Imperial Metals (TSX: III), which holds a 30% joint venture stake.

Last month, the project received crucial regulatory approvals, paving the way for a transition from open-pit mining to an underground operation and extending its lifespan into the mid-2040s.

“Newmont welcomes the government of Canada’s announcement of a C$500 million contribution to support the Red Chris Block Cave project,” the Colorado-based miner said in a statement.

“As we advance through our approval process toward a final investment decision, this commitment strengthens the business case for the development of a world-class copper-gold operation.”

Newmont is currently completing a definitive feasibility study for the project. The Red Chris Block Cave is expected to create more than 1,800 jobs during construction and sustain a total approximate workforce of 1,500 peak-season operational roles.