Taseko Mines Ltd’s New Prosperity copper-gold project has been slammed by the rabid protests of the Tsilhqot’in people, and the future of the $1.1-billion expansion plan seems to be cast to the wind. The mining site that Taseko has previously laid eyes on has been declared by the Tsihqot’in as a tribal park, in which large-scale industrial mining is prohibited. It is clear that Taseko has failed to examine the “social aspect” of the PEST Analysis. In this case, the natives who have long opposed the mine and claimed hunting and fishing the the area form a powerful external force. And with the support from the government, this mining plan seems completely infeasible.
In my opinion, apart from analyzing external factors (culture and people in this case) in advance, Taseko should also formulate alternative plans and strategies in case of accidents. Pursuing a solution through the courts is not just time-consuming, but depreciating. The time and money staying during the ruling process are inefficient, and cannot be used productively. Businesses should always oversee their investments diligently, and this means thorough inspection of possible external threats. Luckily, Taseko was able to take over Curis Resources’ copper project in Arizona. Otherwise, that $1.1 billion could have come to naught.
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