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Taseko says production at Gibraltar mine to rise in 2011

The group says the mine in British Columbia produced more than 90m pounds of copper in 2010 and that this number will increase once a bottleneck in the ore feed system is cleared

Posted: Thursday , 06 Jan 2011

TORONTO (Reuters) - 

Taseko Mines (TKO.TO: Quote) said on Wednesday that its Gibraltar mine in British Columbia produced more than 90 million pounds of copper in 2010 and that it expects production to increase in 2011.

The company, which owns a 75 percent stake in the mine, said Gibraltar produced 23.4 million pounds of copper in the fourth quarter, and 92.3 million pounds of copper in full-year 2010.

The mine also produced 276,000 pounds of molybdenum, used in steel hardening, in the fourth quarter, and 941,000 pounds over the full year.

Taseko said it expects production from Gibraltar to increase in 2011 once a bottleneck in the ore feed system is cleared.

The price of copper hit a record high of $9,754 a tonne on Tuesday.

Late on Tuesday, Taseko reported fourth quarter sales from Gibraltar of 33.6 million pounds of copper, with total 2010 sales of 86.3 million pounds of copper.

Taseko owns three other properties in British Columbia, including the Prosperity copper-gold project. The government of Canada blocked the development of Prosperity in November over concerns about "significant adverse environmental effects".

"Although we were extremely disappointed with the federal government's decision on Prosperity, we accept that decision," Taseko Chief Executive Russell Hallbauer said in press statement.

He added the company would submit a revised proposal to federal authorities to address environmental concerns.

Shares of Taseko closed down 1 percent at C$4.93 on Wednesday on the Toronto Stock Exchange.

($1=$1.00 Canadian) (Reporting by Julie Gordon; editing by Peter Galloway)

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