Newmont and Imperial Metals expect a final investment decision on the Red Chris block cave copper-gold mine in British Columbia in early 2027. First production is targeted for 2033, and the first phase is expected to yield more than 1.8 billion pounds of copper.
At a glance
- Construction is expected to start in 2027, subject to joint venture approval, with first production targeted for 2033.
- From 2035 to 2040 the mine could average 145-187 million pounds of copper and 275,000-325,000 ounces of gold a year.
- Red Chris's open-pit copper output fell to 14.8 million pounds in the third quarter, from 20.9 million a year earlier.
Background
Red Chris is a copper-gold mine in British Columbia's Golden Triangle, operated by Newmont, with Imperial Metals holding 30%. A block cave is an underground mining method that undercuts a large ore body so the rock breaks up under its own weight and can be drawn out from below. It allows large-scale mining at depth.
What the companies said
Newmont and its partner Imperial Metals said on October 22 that the feasibility study for the Red Chris block cave is nearing completion. A full funds investment decision is now expected in early 2027. Subject to joint venture approval, construction would start in 2027, with first production targeted for 2033.
On a 100% basis, the first phase is expected to produce 3.0 million ounces of gold and more than 1.8 billion pounds of copper over an initial 13-year cave life. Between 2035 and 2040, output is expected to average 275,000 to 325,000 ounces of gold and 145 to 187 million pounds of copper a year. The companies say Red Chris could operate for up to 70 years.
Why the project is moving ahead
The block cave would mine the copper-gold system beneath the existing open pit, reaching higher-grade ore at depth. British Columbia approved amended permits in June 2026 that allow the move from open-pit mining to block caving, through a consent-based process with the Tahltan Nation. In July, the Government of Canada announced a $500 million contribution to the project, and the partners expect to finalise its terms in the coming months.
The total development cost has not been published. Imperial says it will release the figure after completing a technical report based on Newmont's feasibility study.
What it means for current output
The deeper mine matters because the open pit is producing less. Red Chris produced 14.8 million pounds of copper in the third quarter, down from 20.9 million pounds a year earlier, and 12,391 ounces of gold, down 43%. Lower grades and recoveries caused the fall, though throughput rose 17%, and Imperial says the mine remains on track for its 2026 budget.
Our read
Outlook: neutral. First production is not targeted until 2033, so the project does not change near-term copper supply.
What to watch
- The joint venture's full funds investment decision, expected in early 2027.
- Imperial's technical report, which will disclose the project's total development cost.
- Final terms of the Canadian government's $500 million contribution.
For information only, not investment advice.
Copper price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-22: Newmont and Imperial Metals update the Red Chris block cave study and report third-quarter output.
Supply Drivers
The block cave would add 145-187 million pounds of copper a year from the mid-2030s, too late for current markets.
Mining Production
Red Chris copper output fell to 14.8 million pounds in the third quarter on lower grades and recoveries.
What could lift prices
- First output in 2033 shows how slowly large new copper supply arrives.
- Red Chris's open-pit copper output fell sharply in the third quarter.
What could weigh on prices
- The block cave adds a large new source of copper and gold from the mid-2030s.
- A $500 million government contribution helps fund the project.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Canada | High | The project is backed by a $500 million federal contribution and could run for up to 70 years. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Copper Mining | Positive | The block cave could keep Red Chris producing copper for decades. |
| Gold Mining | Positive | The first phase is expected to produce 3.0 million ounces of gold. |
Who gains, who loses
- Tahltan Nation: The permits were secured through a consent-based process aimed at long-term local benefits.
- Imperial Metals: It cut 2026 guidance for its separate Mount Polley mine to 16-18 million pounds of copper after delays.
Other ways this could play out
- If the joint venture approves the project in early 2027, construction could begin that year.
- If the cost in the technical report comes in high, the investment decision could slip.
Price risks
- The total development cost is not yet public.
- Final terms of the government contribution are still being negotiated.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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