Teck Cominco and NovaGold invest $2bn in new Canada gold mine

Teck Cominco and NovaGold have formed a partnership that will see $2 billion being invested in a new gold and copper mine in north-west British Columbia.

The Galore Creek project is expected to produce more than 340,000 ounces of gold per year for its first five years, together with 432 million pounds of copper and four million ounces of silver.

More than 540 million tonnes of reserves and around one billion tonnes of resources mean that its annual output could be considerably increased, and the mine may have a life span of more than 20 years.

NovaGold will invest $128 million in construction and pre-construction, as well as $350 million in anticipated project expenditures. Teck Cominco will match this with a $478 million investment.

Moving forward, a new controlling company named Galore Creek Mining Corporation will be formed.

"Teck Cominco is pleased to be working with NovaGold, in consultation with the [first nation people] Tahltan Nation, to develop one of the world's largest mining assets right here in British Columbia," said Teck Cominco president and chief executive Don Lindsay.

"Our investment in the Galore Creek partnership is aligned with our growth strategy and will significantly expand our copper and gold resources and production to create long-term value for our shareholders."