Newmont’s Red Chris underground expansion gets regulatory green light

Newmont (NYSE: NEM, TSE: NGT) said on Friday its Red Chris mine in British Columbia has 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. 

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

The approvals enable the transition of the Red Chris mine from current open-pit operations to block caving, and mark a milestone in stage-gating as Newmont advances toward a final investment decision (FID) later this year. 

The province’s approvals include an amended Environmental Assessment Certificate (EAC), achieved through a consent-based process with the Tahltan Nation, as well as an amended Mines Act permit.  

The Red Chris copper-gold porphyry deposit in British Columbia’s Golden Triangle is a massive mineral endowment containing an estimated 20 million ounces of gold and 13 billion pounds of copper across its measured, indicated, and inferred resources. 

Red Chris offers decades of further upside potential beyond this initially permitted phase, the company said.  

  “With significant mineral endowment, availability of clean hydroelectric power, port access, supportive governments, and strong Indigenous economic leadership, northwest British Columbia is emerging as a world-class mining district,” Newmont CEO Natascha Viljoen said in a press release.  

“We are proud to have advanced this project through a consent-based framework with the Tahltan Nation, reflecting our shared commitment to responsible resource development.” 

The US giant increased both its presence in the Canadian province and its exposure to copper when it acquired Newcrest in a $17 billion deal in 2023. 

The acquisition brought the Bruce Jack mine into its portfolio along with Red Chris, and the miner has said it is planning a lengthy presence in the province’s northwest, which is rich in gold and copper. 

Province reacts 

“The Red Chris expansion highlights how partnership agreements with First Nations and a predictable process are creating the certainty needed to move major projects in British Columbia forward,” Premier David Eby said in a statement Friday.

“That confidence is driving historic private-sector investment in B.C. that is creating good job opportunities and family-supporting jobs, and the funding needed to deliver strong public services for people across the province.”

Approval of the Red Chris mine expansion project is expected to deliver lasting benefits for the Tahltan Nation and people throughout British Columbia by creating jobs and supporting economic growth, Eby said.

“The regulatory approval of Newmont’s Red Chris Block Cave Project in Northwest BC is excellent news for British Columbians and a vote of confidence in BC’s mining sector,” Michael Goehring, CEO of the Mining Association of British Columbia said in an emailed statement to MINING.COM.  

Goehring added that the project will generate substantial economic benefits for the Tahltan Nation, local communities, and British Columbians.  

It includes several billion dollars in capital investment, creating more than 1,800 jobs during construction and sustaining approximately 1,500 operating jobs until at least 2040, he said.  

“The Red Chris Block Cave project is the seventh major BC mine or mine extension permitted in the last 18 months,” Goehring said. While this is great news, we urge the provincial government to build on this momentum by accelerating permitting for more mines to make BC’s and Canada’s economy stronger.” 

Newmont is completing a definitive feasibility study and detailed cost estimate for the Red Chris Block Cave. The project is expected to generate over 1,800 construction jobs, sustain approximately 1,500 peak-season operating roles and increase Canada’s copper production by about 15%.