Taseko’s Plan for New Prosperity Protects Sacred Lake

Last week, Taseko Mines (TSX:TKO,AMEX:TGB) filed a new environmental impact study regarding its $1.1 billion New Prosperity gold and copper venture with Canada’s federal government, which rejected the project in 2010.

This time around Taseko says it will manage and minimize environmental impacts and take better account of the concerns of First Nations communities who live in the region.

Taseko’s original plan was to drain Fish Lake and store waste rock and dirt on the dry lake bed. The plan was strongly opposed by the Tsilhqot’in First Nation, for whom Fish Lake is a place of spiritual importance. “We are totally opposed to both the proposed construction of the transmission [line] and also the destruction of Fish Lake. We are concerned about our way of life and our salmon,” a Tsilhquot’in representative said in 2009.

Now, Taseko is “confident” that its new proposal not only satisfies environmental targets, but also creates economic value for Canadians. “The project is expected to generate $11 billion in Real Gross Domestic Product and 57,000 person years of employment over its anticipated 20 years of operation,” an executive report about the environmental impact statement asserts.

“The economic and social benefits for British Columbia and Canada will be significant, and especially for the Cariboo-Chilcotin region considering the current and future impact of the pine beetle infestation in this area of the province.”

Russell Hallbauer, president and CEO of Taseko, said, “[w]e are committed to the responsible development of New Prosperity and will invest an additional $300 million to ensure the protection of Fish Lake and address concerns raised by the previous federal review panel in 2010.”

The mine, which will take two years to build, is located 125 kilometers southwest of Williams Lake, BC.

Taseko was ordered to rewrite the environmental impact statement earlier this year after the Canadian Environmental Assessment Agency concluded that the draft was “riddled with gaps, deficiencies and missing information,” CBC reported. Ottawa agreed last year to hear a second environmental review after Taseko reworked the project. Ottawa rejected the project in November 2010, nearly 10 months after British Columbia approved the project and granted the company an Environmental Assessment Certificate.

Now that Taseko has resubmitted the statement, the next step will be public hearings on the new plan. After that, a panel will make a decision — expected sometime next year — The Vancouver Sun reported, adding that Taseko’s new plan involves storing waste rock and dirt north of Fish Lake. A tailings pond to store the acid-producing waste will be moved upstream, about 2 kilometers from Fish Lake.

But whether First Nations’ communities living in the region will agree to the new environmental proposal remains to be seen. The Vancouver Sun reported that Tsilhqot’in representatives were not available for comment last week, adding that one of the group’s members said during Taseko’s June annual meeting in Vancouver that she continues to oppose the project.

However, the newspaper added that Irvin Charleyboy, a vocal opponent of the original mine plan, said last week that he now supports the project as it offers desperately-needed jobs and training for young First Nations people. “We can’t turn our backs on opportunities like this,” Charleyboy was quoted as saying.

Taseko emphasizes in its executive summary that it has incorporated key issues raised during Aboriginal consultations — including the protection of fish, wildlife habitats, water quality, archaeology and gathering and harvesting locations — into the project design. It also highlights the project’s economic and social benefits.

“Consultation events and activities with aboriginal groups and individuals have been conducted since 1993,” Taseko said. “[R]elying on the information supplied by relevant experts in each of the scientific and social disciplines who have contributed to this report, Taseko concludes that the Project is not likely to cause any significant adverse environmental effects.”

Taseko’s shares, which have risen more than 10 percent in the past year, are up about 4 percent since the announcement about the environmental impact statement was made on September 20. Investors are betting that the company will get environmental approval from a special three-member review panel established by Canada’s federal government. The shares closed at C$3.20 on Monday.

Securities Disclosure: I, Karan Kumar, have no direct investment interest in any company mentioned in this article.