Newmont has received regulatory approval to expand its Red Chris copper-gold mine in British Columbia, moving the operation underground. The green light marks a pivotal shift from open-pit mining to block caving, a more efficient extraction method for deep ore bodies.
The transition is expected to extend the mine's life and boost production volumes, though specific output targets were not disclosed. Block caving typically allows access to larger, lower-grade deposits with less surface disruption compared with traditional open pits.
Newmont has not yet released capital expenditure figures for the underground development. The company will now proceed with detailed engineering and construction planning, which could create hundreds of jobs during the build phase.
The approval comes amid growing demand for copper, a critical metal for electrification and renewable energy infrastructure. British Columbia's regulatory process for mining projects has faced scrutiny in recent years, with some critics arguing it can slow investment.
Counter_argument: Environmental groups may challenge the decision, citing concerns over groundwater impacts and tailings management at block cave operations. The transition also carries execution risk, as block caving requires precise geological knowledge and significant upfront capital.