According to Porter’s 5 forces, threat of new entrants seem to be Taseko Mines Ltd.’s largest issue as of current. With a new government policy imposed to subdue mining activity in their proposed Prosperity Mine due to Chilcotin First Nations land rights, the company will have to undergo a major revamp on their business model in order to sustain their business.
Chilcotin’s Dasiqox Tribal Park includes Fish Lake, above, as well as the site of Taseko’s proposed New Prosperity mine. (The Vancouver Sun)
While Taseko Mines Ltd.’s Fish Lake property is in fact outside the title area of the Chilcotin, the natives, claiming hunting, fishing, and trapping rights “have folded the mine site into the tribal park boundary” (The Vancouver Sun).
Consequently? Taseko Mines is attempting to fight back, though chances of the project continuing are slim to none. As Christy Clark states, “recognizing aboriginal title represents a new “fork in the road” for improved government relations with native people” (The Vancouver Sun), it is evident that the government is prioritizing community over commercial relationships. As a result, Taseko has had to alter its key activities, looking into purchasing the mineral exploration and development company Curis Resources and changing its avenue from Vancouver to central Arizona (The Globe and Mail).
While Taseko has a solid backup plan, what will become of the rest of the commercial sector if the issue of native land rights persists? Is respecting the original inhabitants of Canada more important than the stake of our future economy?