Pest analysis for the First Nation

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http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html

As mentioned in news above, there was a conflict between the First Nation and the Taseko . A tribal park is going to be opened in Tsilhqot’in , however, the border of the tribal park concluded the mining spot for Taseko . The First Nation argued that Tsilhqot’in featured for its superior ecosystem , so they are concerning about the mining spot will break the natural balance and pollute lakes for a long time.This case could be analyzed by the PEST model.

Political : The First Nation has their own sovereign territory, and the province government can not interfere their decisions. They are quite independent  in Canada.

Economic: As mentioned, Taseko has just accompolished the takeover of Curis Resource. If Taseko could maintain their mining spot in Williams Lake, then they can enioy the lower cost for production due to the larger economies of scale. Furthermore, if move out the area, it will be a serious issue to deal with $1.1 billion new property project.

Social: Operating in or near the tribal park can be multi-beneficial to both First Nation and Taseko. As Taseko can provide job opportunities to native to reduce the unemployment.

Technical: Due to Taseko setting up the equipments in the area already, so it will be a large expense to remove the equipments.

However, if Taseko continued to convince the First Nation government to stay in the tribal park,its brand may be attacked by environmental groups. Moreover, the company must obey First Nation’s decision as legislated. In conclusion,though it will be uneconomically to mover out, but it will be wise for Taseko to submit to the result to avoid larger deficit in the future.