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Floods, more rain in British Columbia disrupt Centerra and New Gold mines

Mount Milligan copper-gold mine, located about 155 km northwest of Prince George, (Image courtesy of Centerra Gold.)

Torrential rain that set off flooding and mudslides in southern British Columbia earlier this week, closing highways, trapping people in vehicles and forcing the evacuation of some communities, continues to affect mining operations in the province.

Centerra Gold (TSX: CG) (NYSE: CGAU) said on Friday that current conditions have affected rail service between Vancouver west coast terminals and its Mount Milligan mine. This has temporarily disrupted the shipping of concentrate to port and the delivery of some parts and consumables to the mine, it said.

Production at Mount Milligan, located about 155 km (96 miles) northwest of Prince George, hasn’t been affected at this time, the company said, though overall effects on production and sales will depend on matters such as the duration of the rail disruption.

New Gold (TSX: NGD) said that while transportation routes to its New Afton mine have also been affected by rain and flooding, there has been no material effect to the mine’s infrastructure and operations to date.

Canada’s largest diversified miner, Teck Resources, (TSX: TECK.A; TSX: TECK.B; NYSE: TECK) said on Wednesday the once-in-500-year flood event had disrupted the supply chain between west coast terminals and its BC-based operations.

The province, under a state of emergency since Wednesday, said around 18,000 people have been displaced and at least one person had died.

Up to 100 mm of rain is forecast for the province over the weekend, and Public Safety Minister Mike Farnworth said BC may issue on Friday an order to prevent the hoarding of food and other supplies and to prevent price gouging.

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