Thompson Creek Metals

Thompson Creek Metals Company Inc. was a Canadian mining company whose corporate office was in Denver, Colorado. Its activities covered mineral acquisition, exploration, project development, mine operation, mineral processing, and metallurgical conversion. The company was best known initially for molybdenum, a metal used in alloy steels, chemicals, and other industrial applications, but later broadened its portfolio to include copper and gold through the development of the Mount Milligan mine in British Columbia. The business originated with Thompson Creek Metals Company (USA), whose principal asset was the Thompson Creek molybdenum mine in Idaho. In 2006, the privately held company was acquired by Blue Pearl Mining Ltd., a Canadian publicly traded mining company, for approximately US$575 million plus contingent payments tied to molybdenum prices. Blue Pearl changed its name to Thompson Creek Metals Company Inc. in May 2007. From 2006 through August 2013, the company was primarily a molybdenum producer. Its strategic direction changed in 2010 when it acquired Terrane Metals Corp. for approximately US$700 million in cash and shares. The transaction added the Mount Milligan copper-gold development project in central British Columbia and the Berg copper-molybdenum-silver exploration property. Mount Milligan became the company's principal operation and was owned entirely by Thompson Creek. Construction began after the acquisition, initial concentrator feed was achieved in August 2013, first copper-gold concentrate was produced in September 2013, and commercial production was reached in February 2014. Thompson Creek also operated or held interests in several molybdenum assets. It owned the Thompson Creek open-pit mine and concentrator in Idaho, held a 75 percent joint-venture interest in the Endako molybdenum mine and processing complex in British Columbia, and owned a 75 percent interest in the Langeloth Metallurgical Facility in Pennsylvania. The Endako joint venture included Sojitz Corporation as the minority partner. At Langeloth, molybdenum disulfide concentrates could be roasted into technical-grade molybdenum oxide, pure molybdenum oxide, and ferromolybdenum, while certain furnaces also processed spent catalyst materials. The large capital requirements associated with Mount Milligan materially increased the company's debt burden. The project was financed in part through a gold-stream arrangement with Royal Gold, under which Royal Gold funded the development in exchange for the right to purchase a specified share of the mine's gold production at a fixed price. Weak molybdenum prices also placed pressure on the older molybdenum operations, including the Thompson Creek mine, which was placed on care and maintenance during the downturn. Thompson Creek ultimately became financially distressed. In 2016, Centerra Gold acquired the company in a transaction valued at approximately US$1.1 billion, with the deal driven in substantial part by Thompson Creek's debt incurred during the development of Mount Milligan. The acquisition ended Thompson Creek Metals as an independent listed company and transferred its principal assets and operations to Centerra Gold.

Thompson Creek Metals developed from a North American molybdenum mining business into a diversified copper, gold, and molybdenum producer. Its corporate predecessor, Thompson Creek Metals Company (USA), operated the Thompson Creek molybdenum mine near Challis, Idaho. The deposit had been discovered in 1968 by Cyprus Minerals Corporation, and the mine began operating in 1983. Thompson Creek Metals Company (USA) acquired the property in 1993 and began mining there in April 1994. The operation used conventional open-pit methods and included a concentrator capable of producing molybdenum sulfide concentrate. In 2006, Blue Pearl Mining Ltd., a Canadian public mining company, acquired the privately held Thompson Creek Metals Company (USA). The consideration was approximately US$575 million, supplemented by potential additional payments linked to molybdenum prices. Blue Pearl changed its name to Thompson Creek Metals Company Inc. in May 2007. During this period the company was primarily a molybdenum producer, with operations and processing assets in both Canada and the United States. The company expanded its molybdenum platform through its interest in the Endako mine in central British Columbia. Thompson Creek Holding owned 75 percent of the joint venture, while Sojitz Corporation held the remaining 25 percent. Endako consisted of multiple open pits, a concentrator, and roasting facilities. Expansion work begun in 2008 increased processing capacity, although the expansion also affected the expected mine life. Thompson Creek additionally held a 75 percent interest in the Langeloth Metallurgical Facility in Pennsylvania. Langeloth converted molybdenum disulfide concentrate into technical-grade molybdenum oxide and other products, including ferromolybdenum, for customers in the steel and chemical industries. A major strategic change occurred in October 2010, when Thompson Creek acquired Terrane Metals Corp. for approximately US$700 million in cash and common shares. Terrane brought the Mount Milligan copper-gold project in British Columbia and the Berg copper-molybdenum-silver exploration property. Mount Milligan was an open-pit mine located northwest of Prince George. Thompson Creek owned 100 percent of the property and began construction after the acquisition. The mine's concentrator was designed for a nominal throughput of 60,000 tonnes of ore per day. The Mount Milligan development transformed Thompson Creek's production profile. Initial feed entered the concentrator in August 2013, and the operation produced its first copper-gold concentrate the following month. Commercial production was declared in February 2014. The company planned to improve throughput through additional crushing capacity and expected Mount Milligan to become its principal operating asset. The project was financed partly through a gold-stream arrangement with Royal Gold. The agreement was amended over time, and Royal Gold provided substantial funding in return for the right to purchase a specified portion of Mount Milligan's gold production at a contract price over the mine's life. While Mount Milligan broadened the company into copper and gold, the development program also increased its financial obligations. The company faced a difficult operating environment when molybdenum prices weakened. The Thompson Creek molybdenum mine in Idaho was placed on care and maintenance because low prices made continued production unattractive. The mine's concentrate could still be processed through the company's downstream metallurgical network, but the shutdown reduced the contribution of the legacy molybdenum business. Other assets included the Berg property in British Columbia, a 100-percent-owned exploration project containing copper, molybdenum, and silver mineralization. The property remained a development and exploration asset rather than a producing mine. Thompson Creek's operating model therefore combined producing mines, joint ventures, a metallurgical facility, and longer-term exploration projects. By 2016, debt associated with Mount Milligan's construction and development had become a central issue for the company. Centerra Gold acquired Thompson Creek in a transaction valued at approximately US$1.1 billion. The acquisition transferred Mount Milligan and the other assets to Centerra and ended Thompson Creek Metals' existence as an independent public mining company. The company's history is consequently defined by a rapid transition from molybdenum specialization to copper-and-gold diversification, followed by financial pressure and corporate absorption.

• 2016

  Centerra Gold completes acquisition

  [1]Thompson Creek Metalsen.wikipedia.org

  Centerra Gold acquired Thompson Creek, ending the company as an independent listed entity.

• 2014

  Mount Milligan reaches commercial production

  [1]Thompson Creek Metalsen.wikipedia.org

  The British Columbia copper-gold mine formally reached commercial production in February.

• 2013

  Mount Milligan starts processing and produces first concentrate

  [1]Thompson Creek Metalsen.wikipedia.org

  Initial feed entered the concentrator in August, followed by first copper-gold concentrate production in September.

• 2010

  Terrane Metals acquisition adds Mount Milligan

  [1]Thompson Creek Metalsen.wikipedia.org

  The company acquired the Mount Milligan copper-gold project and the Berg exploration property.

• 2007

  Corporate name changes to Thompson Creek Metals Company Inc.

  [1]Thompson Creek Metalsen.wikipedia.org

  Blue Pearl Mining adopted the Thompson Creek Metals name.

• 2006

  Blue Pearl Mining acquires Thompson Creek Metals Company

  [1]Thompson Creek Metalsen.wikipedia.org

  The transaction brought the private Thompson Creek business into a Canadian publicly traded mining company.

• 2003

  Thompson Creek Metals is founded

  [1]Thompson Creek Metalsen.wikipedia.org

  The company identified in this dossier was established as a North American mining business.

• 1993

  Thompson Creek Metals Company (USA) acquires the Idaho mine

  [1]Thompson Creek Metalsen.wikipedia.org

  The company acquired the Thompson Creek property and subsequently began mining there in April 1994.

• 1983

  Thompson Creek mine begins operating

  [1]Thompson Creek Metalsen.wikipedia.org

  The Idaho molybdenum mine entered operation under an earlier owner.

• 1968

  Thompson Creek deposit discovered

  [1]Thompson Creek Metalsen.wikipedia.org

  Cyprus Minerals Corporation discovered the deposit that later became the Thompson Creek molybdenum mine in Idaho.

A vertically integrated North American mining and metallurgical company that combined mine ownership, mineral processing, exploration, project development, and downstream molybdenum conversion. Its strategic identity shifted from primary molybdenum production toward diversified copper and gold mining.

• Copper and gold mining · 2013

  Mount Milligan copper-gold concentrate

  Mount Milligan was Thompson Creek's principal operating asset and its central diversification project. The open-pit mine in central British Columbia supplied ore to an on-site flotation concentrator designed for high daily throughput. The operation produced a marketable concentrate containing copper and gold rather than refined metal. Mount Milligan moved from construction into initial processing in 2013 and commercial production in 2014.

• Molybdenum mining and processing · 1994

  Thompson Creek molybdenum products

  The Thompson Creek mine in Idaho produced molybdenum sulfide concentrate from a conventional open-pit operation. Concentrate from the mine could be sent to the company's downstream roasting network for conversion into molybdenum oxide and related metallurgical products. The mine was placed on care and maintenance during a period of weak molybdenum prices.

• Molybdenum mining and processing

  Endako molybdenum products

  Endako was a multi-pit open-pit molybdenum operation in British Columbia. Thompson Creek held a 75 percent joint-venture interest, with Sojitz Corporation owning the balance. The complex included mining, concentration, and roasting activities, producing molybdenum intermediates for further sale or industrial use.

• Metallurgical processing

  Langeloth Metallurgical Facility products

  The Langeloth facility in Pennsylvania processed molybdenum disulfide concentrates through multiple-hearth furnaces. Its output included technical-grade molybdenum oxide in powder or briquette form, pure molybdenum oxide, and ferromolybdenum. The products served industrial customers, particularly in steel and chemical applications. The facility also had furnaces capable of processing spent catalyst material containing other metals.

• Mineral exploration · 2010

  Berg exploration property

  Berg was a British Columbia exploration property acquired through the Terrane transaction. The project contained copper, molybdenum, and silver mineralization and was assessed for its potential commercial development. It remained an exploration and development asset rather than a producing mine during Thompson Creek's ownership.

• 2016

  Sell the company to Centerra GoldM&A

  Background

  Thompson Creek faced substantial debt associated with Mount Milligan's development, while weak molybdenum prices pressured its legacy operations.

  Action taken

  Centerra Gold acquired Thompson Creek Metals and its principal mining and processing assets.

  Aftermath

  The acquisition ended Thompson Creek Metals as an independent listed company and placed Mount Milligan and the other assets under Centerra Gold.

  Transaction value. Approximately US$1.1 billion (2016)

  Source

• 2013

  Bring Mount Milligan into productionProduct launch

  Background

  The Mount Milligan project was acquired from Terrane and required substantial construction and processing infrastructure before it could generate operating output.

  Action taken

  Thompson Creek commissioned the concentrator, introduced initial feed in August, and produced the mine's first copper-gold concentrate in September.

  Aftermath

  Mount Milligan became the company's principal operation and was declared commercially producing in February 2014.

  Source

• 2010

  Acquire Terrane Metals and diversify into copper and goldM&A

  Background

  Thompson Creek had been primarily a molybdenum producer. Terrane Metals controlled the Mount Milligan copper-gold development project and the Berg exploration property in British Columbia.

  Action taken

  The company acquired Terrane using a combination of cash and common shares and began advancing Mount Milligan toward construction and production.

  Aftermath

  The transaction changed Thompson Creek's asset base and production strategy, but the capital required for Mount Milligan contributed to the debt burden that later constrained the company.

  Acquisition consideration. Approximately US$700 million (2010)

  Source

1. 1Thompson Creek Metalsen.wikipedia.org