Environmental Review Critical of Taseko’s Mine

The review by the Canadian Environmental Assessment Agency said the mine, located 125 kilometers from Williams Lake, would pose “several significant environmental effects”.

These include effects on water quality and fish habitat in Fish Lake; on the use of lands for traditional purposes by Aboriginal groups; and a “significant adverse cumulative effect on the South Chilcotin grizzly bear population,” according to an executive summary of the report, released on Thursday.

The review said that Taseko underestimated the volume of tailings water that would seep from the tailing storage facility and would thus impact water quality. It also determined that Taseko’s water quality objectives are “not likely achievable” even with expensive water treatment measures, and that the concentration of contaminants in Fish Lake are likely to be considerably larger than Taseko’s predictions.

In a statement released Friday, Taseko refuted the conclusions of the report, saying that in most respects the report agrees with the company’s assessment that there would not be significant adverse effects.

“The risks are modest and the social and economic benefits are enormous. The local governments and many citizens of the region made this very clear throughout the panel process,” said Taseko, adding it is confident the federal government will approve the project.

In fact the provincial government approved Prosperity back in 2010, but the federal government rejected the original plan in 2011 because it involved the draining of Fish Lake — a lake of cultural significance to First Nations — for use as a tailings pond.

The company then revised its mine plan, saying it would save Fish Lake and build another tailings pond several kilometers away.

While Taseko said it will challenge the findings of the 323-page report, local First Nations were declaring victory over its conclusions.

The Globe and Mail quoted Counc. Marilyn Baptiste, secretary-treasurer of the Union of B.C. Indian Chiefs, as saying “We are victorious! The panel listened to us and formally determined the project would ‘adversely affect’ the title and rights for the Tsilhqot’in and Secwepemc. What a win for us.”

However, the findings of the Canadian Environmental Assessment Agency report are not binding and it will be up to the federal environment minister to issue or reject an environmental certificate.

New Prosperity is one of the largest undeveloped copper-gold projects in the world. According to Taseko, the copper-gold porphyry contains 5.3 billion pounds of copper and 13.3 million ounces of gold, with a pre-tax net present value of C$3 billion and a 40 percent internal rate of return.

Taseko also operates the Gibraltar mine, the largest open-pit copper-molybdenum mine in Canada.

Shares in Taseko were down 10.94 percent in mid-morning trading in Toronto.

Securities Disclosure: I, Andrew Topf, hold no direct investment interest in any company mentioned in this article.