-2.1°C Not observed 
TORONTO - Thompson Creek Metals Company Inc. (TSX:TCM) is budgeting US$298 million for capital expenditures in 2010 to expand the Endako Mine project and proceed with maintenance and upgrades postponed to conserve cash in 2009.
The Toronto-based molybdenum producer said Monday it expects to spend US$89 million in sustaining capital expenditures and US$209 million to expand the Endako project in Fraser Lake, B.C., in which it has a 75 per cent stake.
The Endako mine expansion project will include the construction of a new mill which will raise ore-processing capacity. This is a change to an original plan to refurbish an old existing mill.
The changes to the expansion plans have raised the total capital cost of the Endako project to C$498 million with Thompson's share standing at C$374 million.
Thompson said it expects its sustaining capital expenditures in 2009 to total $32 million.
The company is also increasing spending on reclamation and environmental measures in 2010.
The Endako mine expansion project was originally announced in March 2008 after a feasibility study in late 2007 estimated Thompson's share of the project's capital expenditures to be C$280 million. It was halted in December 2008 due to economic uncertainty. The resumption of the project was approved by Thompson's board in August this year.
"The delay gave us time to reassess the project's design and we have made a number of improvements which we believe will ensure the efficiency and reliability of the milling process and the planned significant reduction in operating costs," said Kevin Loughrey, the company's chairman and chief executive officer.
"The (Endako) project remains economically attractive and will, with a greater certainty, generate the expected significant reduction in per-pound cash processing costs," said Loughrey.
Commercial production of molybdenum concentrate from the new mill is expected late in the second half of 2011.
Thompson is engaged in the acquisition, exploration, development and operation of molybdenum properties. Its shares closed at $12.31 Friday on the Toronto Stock Exchange.
