Taseko Mines Ltd definitely did not see this one coming. With the Tsilhqot’in First Nations group announcing this October as the opening of their new Dasiqox Tribal Park in the Chilcotin area, Taseko’s $1.1 billion dollar New Prosperity copper-gold project is in jeopardy. The 3,120 square kilometers set to be declared as tribal park land will include the site for Taseko’s controversial project and the Tsilhqot’in people are preparing to establish strict rules against mining and logging in the area. Ever since the First Nations Land Management Act was signed in 1999, these acts to preserve the heritage and resources of Native land have put significant external pressure on natural resource companies like Taseko.
Photo by John Lehmann
Through their New Prosperity copper-gold project, Taseko stated that they were eager to “dramatically increase shareholder value, improve the economic well-being of local communities, and transform into a strongly positioned mid-tier mining company.” However the First Nations Land Management Act has given power to Natives over reserve lands and their resources, thereby limiting Taseko from expanding their supply of key resources and increasing revenue streams. As a Political factor in Taseko’s PEST analysis, the opening of this tribal park is set to have substantial financial implications as Taseko must seek to quickly readjust their future plans to align with BC’s native legislations if they wish to avoid impediments such as this.
References
http://www.cbc.ca/news/canada/background-the-indian-act-1.1056988
http://pestleanalysis.com/pest-analysis/