The Conversation (0)
Jan. 15, 2015 03:50PM PST
Taseko Mines’ New Prosperity copper-gold project got another nod from the BC government this week. The miner announced Thursday that it has received a five-year extension to its environmental assessment certificate for the project, giving it a little more time to get permits in order.
That means Taseko has five more years to pursue approvals and permits and to substantially start its project, according to a note from the Honorable Mary Polak, minister of environment. Although the miner has secured two approvals from the government of British Columbia for New Prosperity, it was rejected by the federal government last March.
Taseko took the federal government to court over the issue last fall, alleging that the government met in secret with groups opposed to the mine before the $1.5-billion project was delayed. At the time of its rejection, the government expressed concerns over the environmental impact of the project.
“In arriving at their decision it is clear that significant work was undertaken by the provincial government to meet their obligations and to properly consider the full range of relevant factors, and we appreciate that effort,” Taseko’s president and CEO, Russell Hallbauer, said in a company statement. “We will continue to work with governments at all levels and with our First Nations neighbours to find ways to shape the project and move it forward in a manner that delivers the greatest possible value to the broadest number of people.”
Taseko could not be reached for additional comment at time of publication.
For her part, Chief Ann Louie of the T’exelc, a First Nations band in Williams Lake, said she is “a little bit surprised, but in a way, not surprised at all” about the extension.
“That’s a very massive project, and anybody that has invested the amount of dollars that Taseko has, they would pursue it,” she stated. Louie added that an agreement between her band and Taseko was recently canceled, so she was unable give further comment on this week’s approval. She did state that as far as she knows, the Chilcotin Nation in the area near the mine has said it does not support the project; however, that doesn’t translate to an outright rejection of mining in the region.
“I’ve never heard them say they are opposed to mining,” Louie said. “They are opposed to this project as it was presented.”
The New Prosperity project currently has a billion-pound measured and indicated resource containing 5.3 billion pounds of copper and 13.3 million ounces of gold. Taskeo has said that the project stands to “offer vital economic value” to the region, and believes it could increase federal government revenues by $4.3 billion and provincial government revenues by $5.52 billion.
Certainly, the news will serve as a reminder to investors of the increasing importance of social license and stakeholder engagement when investing in mining projects, a valuable factor to consider when doing due diligence on investments.
Mining projects in British Columbia have faced increased scrutiny following a massive tailings dam breach at Imperial Metals’ (TSX:III) Mount Polley copper-gold mine last summer. However, the event didn’t put a damper on all projects — Seabridge Gold (TSX:SEA,NYSE:SA) got federal approval for its KSM project in BC last month, making it the second metal mine to get approval from Canada and BC in the last five years.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
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