Block Cave Transition Project, British Columbia
Project Overview
Major expansion of existing Red Chris open-pit copper-gold-silver mine in BC's Golden Triangle, transitioning to advanced block-cave underground mining to extend mine life and substantially increase production whilst reducing emissions by over 70%.
Location & Jurisdiction Northwestern British Columbia, approximately 130 kilometres from BC-Alaska border
- Province: British Columbia
- Region: Golden Triangle mining district
- Traditional territory: Tahltan Nation
Indigenous Partners Tahltan Nation (represented by Tahltan Central Government)
- Population: Significant presence across traditional territory
Key Statistics
- Operator: Newmont Corporation (TSX: NGT; NYSE: NEM; ASX: NEM)
- Current Production: 11 million tonnes of copper-gold ore annually (approved through 2038)
- Ownership: 100% Newmont (acquired through Newcrest acquisition, 2023)
- Capital Requirement: Approximately CAD $2 billion for block cave development
- Project Timeline: Block cave operations to commence within three years (by 2028)
- Expected Start: Construction 2027; production 2030
Indigenous Partnership Model Historic Governance Framework:
- November 2023: Historic Declaration Act Consent Decision-Making Agreement signed
- Second consent-based agreement under BC's Declaration on the Rights of Indigenous Peoples Act (DRIPA)
- First was Eskay Creek project (2022)
- 2017: Red Chris Mine Management Agreement established foundation for collaboration
Co-Management Structure:
- Impact Benefit and Co-Management Agreement (IBCA) ensures Tahltan expertise, perspectives, and values guide operations
- Collaborative environmental assessment between BC Environmental Assessment Office and Tahltan Nation
- Joint decision-making on substantial changes to mining operations
Economic Benefits for Tahltan Nation:
- Direct Employment: Approximately 220 Tahltan employed at mine
- Business Revenue: CAD $100 million annually generated through Tahltan Nation Development Corporation (TNDC)
- Annual Royalties: Paid to Tahltan Heritage Trust
- Shared Tax Revenue: Mineral tax revenue from Province shared directly with Tahltan Nation
May 2025 Community Investment:
- CAD $8 million contribution to Telegraph Creek, Dease Lake, and Iskut communities
- Funding for recreation facilities, greenhouses, community spaces
- Housing improvement planning and pre-development support
Sustainability & ESG Credentials Indigenous Leadership Model:
- Recognized as leading example of reconciliatory resource development
- Free, prior, and informed consent embedded in all major decisions
- Tahltan expertise integrated into environmental monitoring and management
Environmental Performance:
- 70%+ reduction in greenhouse gas emissions when expanded operations reach full capacity
- Block-cave mining more efficient than conventional methods
- Advanced environmental assessment under DRIPA framework
Community Safety:
- Zero lost-time injuries prioritised
- Comprehensive safety protocols for underground operations
Government & Regulatory Support Provincial Fast-Track Designation:
- September 2025: Named among first five projects for fast-track approval under Canada's Major Projects Office (MPO)
- Priority status reflects strategic importance for critical minerals supply
- Streamlined regulatory coordination across federal-provincial boundaries
BC Policy Framework:
- Full alignment with Declaration on the Rights of Indigenous Peoples Act
- Co-governance model serves as template for future resource projects
- Regional framework supports reconciliation whilst enabling development
TNDC Business Development Tahltan Nation Development Corporation has established multiple partnerships:
- Sandvik: Equipment and services partnership for block cave operations
- Central Mountain Air: Exclusive charter flights contract (renewed 2022)
- R.C. Crane & Construction: Hoisting and rigging services partnership (March 2022)
Project Economics Existing Operations:
- Open-pit mine producing copper concentrate since 2015
- Original 28-year mine life
- Acquired by Newcrest (70% stake) in 2019; now 100% Newmont
Block Cave Expansion:
- Front-end capital investment: ~CAD $2 billion
- Lower ongoing investment once established
- Extended mine life beyond current 2038 approval
- More efficient extraction of ore bodies previously uneconomical
Investment Proposition for UK/European Investors Strategic Advantages:
- World's leading gold miner (Newmont) backing expansion
- Proven reserves in one of world's premier mining districts
- Established infrastructure and operating history (10 years production)
- Consent-based Indigenous partnership providing regulatory certainty
- Access to clean BC hydroelectricity
Critical Minerals Supply:
- Copper production increases over 15% at full capacity
- Addresses global copper supply shortages
- Platinum group metals as valuable by-products
- Strategic importance for EV and renewable energy supply chains
ESG Leadership:
- DRIPA consent agreement sets global standard
- Highest ESG performance standards attractive to institutional investors
- Co-management model reduces social licence risk
- Significant emissions reduction despite production increase
Recent Developments July 2025 Incident & Response:
- Three contractors trapped underground following ground incidents during block cave preparation work
- Comprehensive safety stand-down implemented
- Demonstrates rigorous safety protocols during transition phase
Tenth Anniversary Milestone (May 2025):
- CAD $8 million community investment announced
- Decade of partnership with Tahltan Nation celebrated
- Tom Palmer (Newmont CEO): "Projects can only succeed when host communities are thriving"
Provincial Government Support:
- MPO fast-track designation (September 2025)
- Coordination with Indigenous partnership requirements
- Recognition as nationally significant project
Key Contacts
- Operator: Newmont Corporation
- Regional Government: BC Ministry of Energy, Mines and Low Carbon Innovation
Investment Considerations Opportunities:
- Tier-1 operator with global mining expertise
- Proven deposit with 10 years operating history
- Consent-based Indigenous partnership eliminates major permitting risk
- Government fast-track support accelerates timeline
- Block cave technology increases efficiency and extends mine life
- Strategic copper supply in supply-constrained market
Risk Factors:
- Large upfront capital requirement (CAD $2 billion)
- Underground mining transition technical complexity
- Remote location infrastructure dependencies
- Commodity price volatility impacts project economics
- Recent safety incidents highlight underground operational risks
Investment Timeline
- 2025-2026: Environmental assessment amendment and final permitting
- 2027: Construction commencement
- 2028: Block cave operations begin
- 2030: Full production from expanded operations
- Post-2038: Extended mine life from block cave reserves
Investor Resources
- Newmont Red Chris project page
- Tahltan Central Government Red Chris information package
- BC Declaration Act Consent Decision-Making Agreement (November 2023)
- Newmont 2024 Sustainability Report