Toronto-headquartered Centerra Gold on Thursday warned that it might have to reduce the throughput level of its Mount Milligan operation, as the company continues to face water risks at the British Columbia mine.
Centerra has applied for permits to access further groundwater and surface water, but said that should the approvals not be received on time, throughput may need to be reduced in the fourth quarter.
Certain parts of British Columbia have been experiencing above-average hot and dry conditions. In December, Centerra temporarily shuttered the ore-crushing mills of Mount Milligan – 145 km northwest of Prince George – following a dry year in 2017 and deep-freeze conditions at the end of the year.
The company has applied to the British Columbia Environmental Assessment Office for an amendment to its environmental assessment certificate to provide additional short-term water sources through to 2020, and to initiate the development of a longer term water supply plan for subsequent years.
The amendment to the certificate and related permitting is subject to consultation with relevant regulatory bodies and Indigenous groups.
With respect to short term water sources, Centerra has requested permission for Mount Milligan to access additional water from groundwater wells and from surface water sources at Philip Lake, Meadows Creek and Rainbow Creek.
The Mount Milligan mine is a conventional truck-shovel openpit copper and gold mine and concentrator with a 62 500 t/d design capacity copper flotation processing plant.