A massive, $8 billion copper-gold mine in the Golden Triangle of ÎÚÑ»´«Ã½ – the KSM mine – has marked an important milestone with a substantial start designation by the BC Environmental Assessment Office.
The KSM mine – so named for the three main deposits of Kerr, Sulphurets and Mitchell – is a prime example of how glacial the pace can be for permitting and building a new mine, especially very large ones like KSM.
The KSM project – touted as one of the largest undeveloped gold-copper deposits in the world -- is being developed by KSM Mining ULC, a subsidiary of Seabridge Gold (TSX:SEA,NYSE:SA), at a staggering capital cost of $8 billion. An updated preliminary feasibility study estimates the project has proven and probable reserves of 47.3 million ounces of gold and 7.3 billion pounds of copper.
The project entered the BC EAO process in 2008, and received its environmental certificates a decade ago, in 2014.
But it has only now been designated by the BC EAO as substantially started. It experienced a number of setbacks, including delays caused by the COVID-19 pandemic, that required extensions to be granted to the original environmental certificate.
The deadline for the original certificate required the project to be substantially started by 2019. A five and then a two-year extension was granted, pushing the substantial start date to 2026.
But on July 25, the BC EAO issued a designation confirming the project now has substantially started.
"This is a significant regulatory milestone for the KSM Project, positioning it to become a multi-generational economic anchor for northwestern BC,” said Seabridge CEO Rudi Fronk.
“We thank the Government of British Columbia, and especially the Environmental Assessment Office, for their recognition of the significant work already completed at KSM. This decision reaffirms BC's support of responsible mining projects and the development of a stronger critical mineral supply chain needed for effective climate action.”
Seabridge says it has spent $1 billion so far just getting the KSM project through the BC EAO process and to the starting line. That includes early site construction work.
“This is great news for the KSM project, Northwest ÎÚÑ»´«Ã½ and the people and prosperity of our entire province,” said Michael Goehring, president of the Mining Association of BC (MABC).
“Through its construction and operation, the KSM Project will deliver generational economic benefits for BC and ÎÚÑ»´«Ã½ and a critical supply of copper for the energy transition. The project will also advance economic reconciliation through strong partnerships with the Tahltan and Nisga'a nations.”
