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Iamgold defers Côté expansion and studies nearly double processing plan
The shift includes shelving $500 million to $750 million of spending tied to a 50,000-tonne option, while Iamgold moves the plant toward 40,000 tonnes a day first.
Iamgold has deferred its planned expansion of the Côté Gold mine as it evaluates a much larger build that could nearly double the Ontario operation’s processing rate, according to Mining.com. The miner says its year-end study will be used to assess how aggressively it can pursue growth, including options that would change the sequence of mining Côté and the adjacent Gosselin deposit.
Iamgold previously expected its year-end study to model a move from 36,000 tonnes a day to 50,000 to 55,000 tonnes, but it is now prioritizing pushing the existing plant toward 40,000 tonnes a day first, while shelving between $500 million and $750 million of spending tied to the 50,000-tonne option. The company framed the revised scope as reflecting the size and opportunity at Côté, which is located about 500 km north of Toronto.
The Côté mine is about 70% owned by Iamgold, with Sumitomo Metal Mining holding the remaining 30%, and it began commercial production only two years ago. Mining.com notes that combining Côté with the nearby Gosselin deposit could bring a larger resource into the mine plan, but higher processing rates would require earlier development of Gosselin and more tailings capacity.
Shares of Iamgold rose 12% to C$25.25 Friday afternoon in Toronto, giving the company a C$14.5 billion market capitalization ($10.4 billion). Management expects an updated mine plan by year-end that combines Côté and Gosselin for the first time, including upgrades needed to sustain about 40,000 tonnes a day and a separate review of larger expansion choices such as a 70,000-tonne scenario.
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