The public relations war over a massive copper-gold mine in Northern B.C. is back in full swing. Vancouver-based Taseko Mines (TSX:TKO) on Tuesday issued an updated economic study for its Prosperity project near Williams Lake, pointing out in a news release the project would create 71,000 jobs over its 20-year mine life.
Ottawa rejected the project last fall, citing environmental concerns regarding the destruction of the Fish Lake watershed. But Taseko hasn’t given up.
The company, which operates the Gibraltar mine near Williams Lake, has re-engineered the project to save Fish Lake (though not Little Fish Lake) and submitted a new project proposal to the federal government.
New Prosperity would increase federal government revenues by $4.3 billion and provincial revenues by $5.52 billion during its life, Taseko said.
The economic benefit study, completed by the Centre for Spatial Economics, also determined that New Prosperity would result in a $786 million increase in residential investment expenditure in B.C. and a $1.38 billion increase in investment in machinery and equipment.
“New Prosperity offers significant benefit for people, including First Nations – new jobs, new opportunities for business and new revenues for governments, all of which will boost the economy and help fund essential public service,” said Russ Hallbauer, Taseko’s president and CEO.
The price tag for the re-engineered project also continues to increase.
In February, when Taseko announced the re-tooled Prosperity plan, the project’s capital cost had climbed to $1.1 billion from approximately $800 million.
On Tuesday, Taseko said the project would now cost $1.5 billion.
In August, the Tsilhqot’in National Government, the leading opponents to the project, called on Ottawa to halt the environmental review process, calling it a drain on time and resources. (See “CEAA accepts review of 'New' Prosperity project” – BIV Business Today, August 29.)
Hallbauer has said the federal government’s environmental assessment of the re-designed project is expected to begin within weeks.
For more information about the project, check out Business in Vancouver’s four-part “Chasing Prosperity” series. (See “Full Disclosure: Chasing Prosperity” – issue 1101; November 30-December 6, 2010.)
The series has since been nominated for a Jack Webster Business, Industry & Economics award.
Joel McKay
@jmckaybiv