A federal government review panel concluded Friday that Taseko Mines Ltd.'s (TSX:TKO) proposed copper-gold mine near Williams Lake would result in significant adverse effects on the environment.
Taseko's share price fell 20% to $3.33 during mid-day trading Monday. Its share price had already dropped 9% on Friday to close at $4.16 prior to the review panel announcing its findings at market close.
The Canadian Environmental Assessment Agency panel said that Taseko’s Prosperity mine would have significant adverse environmental effects on, among other things, fish and grizzlies in the area and on First Nations’ ability to use the land.
The panel’s report, which made no final recommendations, is to go before the federal cabinet to decide the fate of the mine later this year.
The project has its provincial environmental permit but awaits approval from Ottawa.
Taseko’s proposed open-pit gold-copper mine has estimated reserves of 5.3 billion pounds of copper and 13.3 million ounces of gold.
First Nations have been particularly opposed to the company’s proposal to drain the nearby Fish Lake to create a tailings pond.
In this week’s print edition of BIV, Taseko CEO Russ Hallbauer talks about the challenges the company has faced in advancing the Prosperity mine project.