Taseko shares hit four-month high after EPA issues final permit for Arizona copper mine

Shares in Canada’s Taseko Mines (TSX: TKO; NYSE: TGB; LSE: TKO) soared Thursday morning to their highest level since May after the company said the receipt of a U.S. Environmental Protection Agency (EPA) permit moves its Florence copper project in Arizona closer to commercial production. 

The Underground Injection Control Permit — the last hurdle before production — makes Florence, located about halfway between Phoenix and Tucson, one of very few construction-ready, fully permitted copper projects in North America, the company said. 

“With approvals in place from the Arizona Department of Environmental Quality and now the EPA, we can commence construction of the Florence Copper commercial production facility,” president and CEO Stuart McDonald said in a statement. 

“This achievement is a major stride forward and a result of Taseko’s long-term approach to project development, environmental protection, and community engagement”, the Taseko boss noted.

With procurement well advanced, the Vancouver-based miner said the next steps will be mobilization of contractors for the wellfield and plant construction. 

“We continue to advance discussions with potential lenders and royalty providers for the remainder of the project financing package and expect to have additional commitments in place before construction spending ramps up,” McDonald said.

The project has faced backlash from locals over its potential environmental impact, but the company has continuously addressed concerns, which led it to obtain a draft permit for Florence in August last year.

According to Taseko, Florence has one of the least capital-intensive copper production facilities in the world, and when fully ramped up, will produce 85 million lb. of copper (about 38,000 tonnes) annually over a 22-year mine life for the U.S. domestic market.

The company said it expects the project to have the lowest energy and greenhouse gas intensity of any copper producer in North America. Florence is also expected to reduce the U.S’ reliance on foreign producers for supplies of a metal considered to be critical for the transition to a low-carbon economy.

Taseko shares rose as high as 20% to $2.12 apiece on Thursday in Toronto, valuing the company at $603.2 million. Its shares traded in a 52-week range of $1.40 and $2.53.