Ottawa has killed Vancouver-based Taseko Mines’ plan for an open-pit mine near Williams Lake because of environmental concerns.
“The project as it was proposed would result in the destruction of Fish Lake and the destruction, as well, of a complex and highly productive ecosystem,” Environment Minister Jim Prentice told media November 2.
Taseko’s stock (TSX:TKO) closed down three cents at $6.55 before Prentice’s announcement. It slid 31% to $4.49 in trading Wednesday morning.
“This is a huge victory for the Tsilhqot'in people and their allies in the environmental community who have worked tirelessly to win this battle for all Canadians,” noted anti-Prosperity Mine activist Wolfgang Zilker on his website Protectfishlake.ca hours after Prentice’s announcement.
BC Chamber of Commerce president and CEO John Winter views the decision as one that “will have a profound impact on the provincial economy for years to come.”
He believes that the most damaging aspect of Prentice’s decision is that it will affect investor confidence.
Taseko CEO Russ Hallbauer, who was unavailable for comment, had been optimistic about his proposed copper-gold mine’s chance of success. He had obtained a 25-year mining lease from the B.C. government in July.
The project had already received a provincial environmental permit and had been advertising how prosperous the mine would be.
According to the company, over its 20-year life, Prosperity would generate $1.7 billion and $3.4 billion in tax revenue for the federal and provincial governments, respectively (See Russ Hallbauer's profile "Building prosperity" – issue 1080; July 6-12).