By James Peters
April 18, 2016 - 11:45am Updated: April 19, 2016 - 5:45am
Image Credit: MiningWatch Canada
KAMLOOPS — MiningWatch Canada has issued a damning report on the financial predictions made by KGHM-Ajax.
The industry watchdog organization says Ajax made several errors in both its economic feasibility study and its environmental application.
According to the group, the project underestimates its costs by a minimum of 300 million dollars.
The report also states the mine has overestimated the long term price of copper to the tune of 15 to 30 per cent over and above experts' predictions.
One of the report's authors says he believes the company would have serious problems meeting its financial commitments, and that would have the mine operating only intermittently, and put it at risk of early closure.
KGHM-Ajax emailed a response to CFJC Today stating "The fact that an anti-Ajax group commissioned an anti-mining group to conduct an economic analysis about a mine they both oppose says it all. They started with the conclusion and worked backward. With the EA comment period closed and all environmental questions being addressed, those opposed have now turned to the only thing left to question – the project’s economics. The most telling fact is that KGHM is prepared to invest more than $1 billion in the Ajax Project. It would be foolish to move forward with such an investment without solid assurance and confidence in the Project’s economic prospects."