Mineral Exploration is the official publication of the Association of Mineral Exploration British Columbia.
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Photograph : Government of British Columbia S P R I N G 2 0 1 5 33 Avanti Kitsault Alloycorp Mining Inc. (formerly Avanti Mining Inc.) says its goal is to become the unique supplier of steel alloy metals. The corner- stone of its strategy is the development of its Avanti Kitsault molybdenum project. Once the project is developed, Alloycorp will look to grow through the acquisition of other assets that pro- duce steel alloys. Alloycorp hopes to become a top-four primary molybdenum producer by 2017. Avanti Kitsault is located 120 kilometres north of Terrace. The mine plan is for a conventional truck-and-shovel, open-pit operation. According to the plan, the mine will operate 365 days per year, with enough materials stockpiled at the crusher and coarse ore stockpile to accommodate mine downtime during the harsh northern winter. Alloycorp has off-take agreements for up to 70 per cent of total mine production. In June 2013, the company entered into an off- take agreement with ThyssenKrupp Metallurgical Products GmbH for one-half of total molybdenum production at Avanti Kitsault over the life of the mine. Molybdenum will be delivered to ThyssenKrupp in the form of molybdenum oxide after it has been processed at Molymet's facilities in Chile and Belgium. And in April 2014, Alloycorp entered into an off-take agreement with SeAH M&S Corp. for up to 4,200 tonnes of molybdenum concentrate – about one-fifth of total molybdenum production – annually for 12 years. Avanti Kitsault is in the pre-construction stage. "Earth- moving is taking place now, with major construction slated to begin in March 2015," says president and CEO Gordon Bogden. The construction project will entail preparing the camp site, the plant, the mill and the tailings pond. Construction is expected to be completed in the first quarter of 2017, with full mine produc- tion beginning soon afterward. According to Bogden, the project is moving forward satis- factorily. "When it is operating, Avanti Kitsault will be one of the lowest-cost molybdenum mines in the world," he says. "The price of molybdenum is only about $9 per pound today, but it is expected to rise to around $15 to $17 per pound." Bogden says the company's name was changed in November 2014 in order to reflect the direction of the company's business. "We're not like other miners in the region," he says. "As a key sup- plier in the production of stainless steel, Avanti Kitsault is a vital component of the global industrial supply chain. With continued growth expected in the U.S. and general economic improvement globally, we are well positioned to capture the potential upside through growing industrial production." ■ Molybdenum revival: Alloycorp hopes to begin production at Avanti Kitsault in 2017.