Taseko Signs Agreement With BC to Defer Power Costs For Gibraltar Mine

Taseko (TSX:TKO) has signed an agreement to defer up to 75 percent of power costs for the Gibraltar mine. The agreement is retroactive to March 1 2016.
As quoted in the press release:

In February, the Government of British Columbia announced a five-year power rate deferral program for BC mines. This deferral program, which was put in place to help the Province’s mining industry during the weak economic environment, allows qualifying mines to defer up to 75% of their electricity costs based on a sliding-scale of metal prices. At today’s copper price, the maximum deferral of 75% will apply.
Russell Hallbauer, President and CEO of Taseko, commented, “Electricity is one of Gibraltar’s biggest expenses; accounting for nearly 10% of the mine’s total operating costs. This deferral program will reduce Gibraltar’s annual spending by up to C$18 million and is another initiative to help the Company ensure sufficient working capital during this extended period of lower copper prices. Along with the other cost containment initiatives implemented over the past year, the Company is well positioned to manage through this challenging time. We have worked aggressively to reduce operating costs, as evidenced by the 15% reduction in cost per ton milled achieved in 2015 to C$9.41 in the fourth quarter. The impact of the cost deferral program is equivalent to a further C$0.60 per ton milled reduction.”
“Cooperative agreements between industry, government and industry associations can only be achieved through strong working relationships which come as a result of management teams with experience in the regions they operate,” concluded Mr. Hallbauer.

Click here for the full press release.