KGHM Polska Miedz SA is considering its options after British Columbia's provincial authorities refused to issue an environmental assessment certificate for its preproduction-stage Ajax copper-gold property.
The company also said Dec. 15 that Canada's minister for the environment and climate change, Catherine McKenna, expects the development to bring significant adverse effects, with the project sent back for further review.
The decision follows a seven-year joint review period by provincial and federal regulators, with Canadian Prime Minister Justin Trudeau's cabinet expected to make a final decision, according to a same-day Reuters report. The review defined 53 residual and cumulative adverse effects, 21 of which were deemed moderate- to high-magnitude.
The proposed 1,700-hectare open pit mine was in close proximity to the city of Kamloops and an elementary school, and the area is of high importance to local First Nation groups.
A January 2016 feasibility study on Ajax outlined a net present value of US$215.6 million at an 8% discount rate and an internal rate of return of 11.1%, after taxes. The study pegged annual production at 58,000 tonnes of copper and 125,000 ounces of gold in concentrate.
KGHM holds an 80% stake in the Ajax joint venture, with Abacus Mining & Exploration Corp. accounting for the rest.
