Taseko Florence Copper Project Starts Cathode Ramp-Up in Arizona

Taseko

Taseko Florence copper project has started producing copper cathode in Arizona, giving Canadian producer Taseko Mines its first commercial metal from the US in-situ copper development. The project’s solvent extraction and electrowinning plant started operations in mid-February and produced 1.5mn lb, or about 680t, of copper cathode in the first quarter.

The Taseko Florence copper project is important because it uses in-situ copper recovery rather than conventional open-pit mining. The process leaches copper underground and recovers it through solution flows before producing cathode through solvent extraction and electrowinning.

The Taseko Florence copper project offers a different supply model for the US copper market. It can reduce upfront capital intensity compared with traditional mining, but it depends on careful control of underground leaching, solution movement, grades and environmental performance.

Taseko previously targeted 40mn-50mn lb of copper output from Florence in 2026. The company expects production to rise to 80mn lb in 2027 as the project moves through ramp-up.

Florence Adds US Cathode Capacity With Lower Mining Intensity

Florence’s first cathode production marks a key operational step for Taseko. The project is now moving from construction and commissioning into the early stage of commercial production.

The in-situ recovery model gives Florence strategic relevance. It avoids large-scale excavation and instead relies on controlled leaching below ground, which can reduce surface disturbance and capital needs.

However, the method also requires disciplined technical execution. Operators must manage solution chemistry, wellfield performance, recovery rates and environmental controls to ensure the process remains stable.

Florence’s output will come as refined copper demand becomes increasingly tied to electrification, grid investment, data centres, electric vehicles and domestic manufacturing. US cathode supply is strategically important because refined copper availability affects wire, cable, power equipment and industrial users.

The project’s cost exposure also looks partly protected in the near term. Taseko said Florence will not face the sharp recent rise in sulphuric acid prices because its acid supply is locked under a fixed-price contract for this year.

That protection matters. Sulphuric acid has become a more sensitive cost input for copper leaching operations because Middle East disruption and tighter sulphur flows have lifted market concerns. A fixed-price contract gives Florence more cost visibility during its early ramp-up.

Gibraltar Output Jumps as Diesel Costs Add Pressure

Taseko’s established Gibraltar mine in British Columbia also delivered a stronger first quarter. Copper output rose to 30mn lb, or about 13,600t, up 50% from a year earlier.

The increase was supported by steadier grades and better recoveries. This suggests Gibraltar benefited from improved operating performance rather than only stronger throughput.

Molybdenum output also rose sharply. Gibraltar produced 717,000 lb, or about 325t, of molybdenum in the first quarter, up 113% from a year earlier.

Molybdenum by-product output can improve mine economics because it adds revenue beyond copper. It also links Gibraltar to special steel, stainless steel, energy equipment and high-strength alloy demand.

Sales lagged production slightly because of shipping timing. This means some of the production benefit may flow through later, depending on shipment schedules and realized prices.

Cost pressure remains a risk. Taseko said higher diesel prices could add 10-15¢/lb to Gibraltar costs this year, equivalent to about $220-330/t.

Diesel exposure is important for open-pit mines because haulage, mobile equipment and site logistics rely heavily on fuel. If energy prices remain elevated, Gibraltar’s operating costs could rise even as production performance improves.

Taseko’s first-quarter update therefore shows two different copper stories. Florence is entering ramp-up as a new US cathode asset with fixed acid pricing, while Gibraltar is producing more copper and molybdenum but faces higher fuel-cost risk.

The Metalnomist Commentary

Taseko’s update shows how copper supply growth is increasingly tied to project type and cost exposure. Florence offers a lower-mining-intensity US cathode route, while Gibraltar highlights the continuing importance of grade, recovery and diesel costs in conventional copper mining.