In a four-part series that began in issue 1101 (November 30-December 6), Business in Vancouver takes a closer look at Vancouver-based Taseko Mines’ proposed Prosperity project. The company says the $800 million mine would stimulate significant economic activity in an economically depressed part of the province, but the federal government rejected the project citing environmental concerns. In this second instalment of the series, BIV chronicles the prickly relationship between Taseko and First Nations.
Mike King was flying over Fish Lake in 1981 when he heard someone scream in the backseat.
Then he smelled smoke.
“I thought something was wrong and landed the helicopter,” recalled King, owner of Tatla Lake’s White Saddle Air Services.
But there wasn’t anything wrong: in fact the helicopter’s geophysical survey equipment, which was new, had detected a sub-surface ore body so large it fried the machine’s circuits and alarmed the geophysicist operating it.
That ore body contained massive amounts of copper and gold, and in proceeding years earned the name Prosperity.
Last month, the federal government rejected Taseko Mines Ltd.’s (TSX:TKO) proposal to turn that ore body into a major new mine.
Ottawa cited the proposed destruction of Fish Lake as the reason behind its decision, though it followed a lengthy and at times virulent First Nations campaign to oppose the project.
Aboriginal groups such as the Tsilhqot’in National Government, which includes five communities, claim Fish Lake is part of their traditional territory, adding that the mine would infringe on their rights and title to the area.
But King, who has logged some 17,000 hours of flying time in B.C.’s Cariboo-Chilcotin region, said although First Nations claim rights and title to the area they don’t spend a lot of time there.
“There was never anybody at Fish Lake … except the guys we take there. It doesn’t happen,” said King.
Nevertheless, the question as to who has control over the land where the mine would be built was central in the run up to the federal decision.
Prior to that, First Nations and environmental groups issued numerous press releases blasting the project for the negative effects it would have on their communities and the environment.
Their campaign even caught the ear of Assembly of First Nations national Chief Shawn Atleo, who reiterated his support for the Tsilhqot’in in a speech in Vancouver in September.
These days, Taseko and the First Nations don’t even talk, but Brian Battison said it wasn’t always that way.
“The consultation records that we have, records of consultation with First Nations, date back to the mid-1990s … I think it can be argued that is when the relationship began,” said Battison, Taseko’s vice-president of corporate affairs.
The company initiated the original environmental assessment in 1993, but shut the process down in 2000 due to weak metal prices.
In 2002 the company re-activated it and, in 2006, began the federal environmental process.
At that point, Battison said the chiefs asked the company to “paint a picture” of what the mine would look like and what affect it would have on the environment.
“They said, ‘In order to help us to understand, we need money to help us paint the picture,’” Battison said.
Between 2006 and 2008 Taseko paid Tsilhqot’in leaders more than $900,000 in legal and consulting fees to participate in the environmental assessment process.
Some chiefs were even paid per diems to attend information meetings, and the company undertook a $750,000 archaeological assessment to determine the project area’s cultural significance.
During the assessment process, the provincial government provided $292,000 to four local aboriginal groups to help them determine their interests in the project area.
As well, the federal government provided more than $530,000 in “participant funding” to First Nations and environmental groups opposed to the project during its assessment process.
Groups in favour of the project such as the Williams Lake Chamber of Commerce and Share Cariboo-Chilcotin Resources Society, received $20,050 from the federal government.
Meanwhile, the landmark rights and title case Tsilhqot’in Nation vs. British Columbia (the William case) wound its way through B.C. Supreme Court.
In 2007, the court found the Tsilhqot’in have rights to hunt and trap throughout their claim area, which included Prosperity, but aboriginal title could not be granted.
Had the case been argued differently, the court said, the Tsilhqot’in might have received title to almost half the claim area, but that half did not include Prosperity or the Fish Lake area.
After the decision was handed down, Taseko decided it was time to apply for the mining lease it needed to proceed with the project.
According to Battison, the First Nations said if the company moved ahead with the lease they would oppose the project.
Shortly after that, the provincial government backed out of a joint review panel with the federal government, effectively separating the two assessment processes.
“Once that decision was made the First Nations said, ‘That’s it … we’re done,’” Battison said.
In an interview, Xeni Gwet’in Chief Marilyn Baptiste said the province pulled out of the joint review process after a similar joint review rejected Northgate Minerals Corp.’s (TSX:NGX) proposal to build the Kemess North mine in northern B.C.
“After the Kemess North mine was shut down … the company no longer wanted that to be one of the options,” Baptiste said.
Last January, a separate provincial government decision approved Prosperity, but the federal process had yet to begin its hearings.
In March, 17 days of hearings began in communities throughout the Cariboo-Chilcotin region.
According to hearing transcripts, dozens of First Nations and Cariboo residents spoke against and in favour of the project.
In a short speech to the review panel, Chilcotin National Congress Chief Francis Laceese expressed concern that if Prosperity were approved it would be the first of many mines to come.
“Our nation has to be in control of what happens or does not happen in our territory,” Laceese said.
Baptiste explained that her people consider the Fish Lake area and the nearby Nemaiah Valley an aboriginal wilderness preserve akin to a park.
The First Nations hope to develop a wilderness tourism industry in the area, which would create jobs for their people and include fishing tours to Fish Lake.
Despite the aboriginal community’s overwhelming opposition to Prosperity, not every chief was entirely against it.
During a hearing at the Alexis Creek Band reserve on April 15, Chief Percy Guichon proposed a partnership between Taseko and the First Nations.
“The future of our children rests with this decision to either stop this mine or to make sure they will be provided for and help secure the future of generations to come,” Guichon said. “Being a partner would alleviate most of the concerns and employment hiring practices that I’ve heard from other presenters.”
He said the project should include economic development and revenue sharing agreements and training programs, among other things.
“The great thing about my idea of becoming a partner is we don’t even have to reinvent the wheel to make this happen. There are other partnerships between mines and First Nations throughout the country … why can’t we?”
Baptiste would not elaborate on Guichon’s comments.
By September 2, Guichon changed his position and said aboriginal opposition to the project was “crystal clear” before the review panel released its report in July.
When asked if Taseko had tabled an economic development agreement with First Nations, Battison said the project was eligible for a revenue-sharing agreement between the government and aboriginals.
He did not say if the company had offered jobs or other revenue-sharing incentives.
“Those opportunities are available for the willing, but the people need to be willing,” Battison said.
Mike King did participate.
Over the years, his venture has garnered somewhere between $400,000 and $500,000 in revenue from Taseko.
But White Saddle Air doesn’t rely only on mining companies. King also flies loggers, scientists and First Nations. He told Business in Vancouver he’s neither in favour of the mine nor against it, adding that even though it might significantly alter the wilderness at Fish Lake it could be a major economic boon for First Nations.
“There’s a big shiny boat going by and you can either throw eggs at it or hop on it and go work,” King said. “What we’re doing is hopping on, getting our two bits.”
Next week: Business in Vancouver focuses on the alleged economic benefits Prosperity could create. Would it be the windfall Taseko promised?
$900,000 the amount Taseko paid First Nations to participate in the environmental assessment process
$532,600 what the federal government paid to First Nations and environmental groups opposed to the project
$20,050 the amount the federal government paid to groups in favour of the project
January 14 – B.C. approves environmental permit at Prosperity
March 22 to May 3 – Federal panel holds public hearing sessions in Cariboo-Chilcotin
May to November – First Nations and environmentalists step up opposition campaign
July 2 – Federal panel submits its report to Ottawa
September 2 – First Nations threaten violence if project is approved; AFN national chief Shawn Atleo opposes project
October 1 – Premier Gordon Campbell calls on federal government to approve Prosperity
October 14 – Taseko’s stock closes 10.52% lower on no news
November 2 – Environment Minister Jim Prentice rejects Prosperity
November 3 – Campbell resigns
November 4 – Prentice resigns; Taseko cuts 65 jobs
November 25 – Media reports surface that Canadian securities regulators are probing Taseko’s October 14 stock decline, citing fears of a government leak
November 25 – The British Columbia Securities Commission says it will review trading in Taseko’s shares