Galore Creek brings in new team
January 16, 2008
THE OWNERS of the Galore Creek copper and gold mine construction project north have here have brought in new senior people to wrestle with a budget that soared to $5 billion from an original cost of $2 billion.
Pol Guzman and Gary Ward will work on what NovaGold and Teck Cominco announced today as a “modified construction approach and execution plan that will deliver enhanced financial returns,” a news release indicates this morning.
Guzman is a mechanical engineer by training and most recently was project director on two mines in Latin America while Ward brings over 40 years of project experience to the Galore Creek project, the release continued
Construction of the Galore Creek began last June after it received all of its environmental permits but was halted the end of November when costs rose dramatically.
At the time, Galore owners NovaGold and Teck Cominco, who jointly own the Galore Creek Mining Corporation, said they would spend $72 million over five years to find ways to lower project costs.
Galore Creek had not only become a financial linchpin to the northwest economy, it also provided a psychological boost to a region hard hit by the evaporation of its traditional wood processing industry.
The start of Galore Creek construction then provided the impetus for the provincial government to give the green light to a $400 million power line runnning up Hwy 37 North. Galore Creek would be its first major customer.
That line was put on hold within hours of the Galore Creek construction shutdown being announced.
Doug Brown, who had been in charge of the project, remains with NovagGold and will sit on various management committees.
NovaGold and Teck Cominco say they did add value to the project by clearing 80 per cent of the 135-kilometer road right-of-way to the ore body from Bob Quinn Lake on Hwy 37 North, by completing 66 kilometers of pioneer road, by installing a number of key bridges and by starting work on the road access tunnel into the Galore Creek Valley.
“During the construction suspension and optimization period, the partners will maintain the existing infrastructure to ensure the project can be restarted quickly and efficiently as soon as a modified construction approach is defined and approved,” the two companies said.
Terrace Standard
