FPX Nickel releases economic impact results for B.C. project
FPX Nickel Corp. [TSXV-FPX] has announced the results of an Economic Impact Study completed for the company’s flagship Baptiste nickel project in central British Columbia.
It said the study assessed the regional, provincial, and national economic impact of the Baptiste Project, based on the findings of the company’s pre-feasibility study, which was published in September, 2023.
Baptiste is located in the Decar Nickel District, a greenfield discovery of nickel mineralization in the form of a naturally-occuring nickel-iron alloy called awaruite. Covering 245 square kilometres, it represents a promising target for bulk tonnage, open pit mining, the company has said.
“The study clearly demonstrates the economic value of Baptiste to central B.C., the province and Canada, positioning the project as one with not just regional, but national significance for more than 30 years,’’ said FPX President and CEO Martin Turenne. “This includes the significant opportunity for Indigenous leadership and direct economic participation in major projects such as Baptiste,’’ he said. “We believe the addition of Baptiste to the established mines operating in the region, including Mt. Milligan and the Blackwater Mine, will provide much needed opportunities for local workers and businesses given the anticipated decline in the region’s forestry activity in the decades to come.’’
Economic study highlights included total direct, indirect and induced tax revenues of $15.5 billion, including $6.2 billion in Federal taxes, $8.5 billion in provincial taxes and $0.8 billion in municipal taxes.
The study also envisages total employment fo 208,000 job-years, including direct, indirect and induced jobs over the life of the mine. Based on data published by the Mining Association of British Columbia, the estimated annual salary in the B.C. mining industry is $139,000, which is 26% higher than the median business income in Prince George in 2022, as reported by Statistics Canada.
The PFS projected the initial development of the mine to take place over three years, with an initial capital cost of $2.9 billion. Over the nine-year duration of Phase 1 operations, the FFS projected annual revenues of approximately $1.1 billion. The PFS assumed that residents of the Bulkley-Nechako Regional District and Prince George would fill a combined average of 633 full-time positions or 61% of the total employment at the mine.
FPX shares were unchanged at 23.5 cents on Monday. The shares trade in a 52-week range of 40 cents and 23 cents.
FPX is currently the first company to be supported by B.C.’s Critical Minerals Office, which aims to guide projects and ensure they move efficiently through the regulatory process.
Back in April, 2024, FPX Nickel said it has successfully completed a large-scale mineral processing pilot testing campaign for the Baptiste project.
The company said the pilot testing campaign marked the first significant component of the ongoing feasibility study (FS) metallurgical testwork campaign. “Results from this testwork confirm the 2023 preliminary feasibility (PFS) study basis, thereby validating FPX’s processing strategy, flowsheet, and key metallurgical criteria, including estimated recoveries,’’ the company said.