Taseko Mines’ trapped expansion

Posted by in Strategy

Tsilqhot’in Protest

The case as to why First Nations declared a large area of a proposed New Prosperity mine at Fish Lake as a tribal park is clear. The Tsilqhot’in National Government exists to promote and stimulate the socioeconomic wellbeing of the Tsilqhot’in people through legal acts. The ultimate goal: to “protect and preserve the Tsilqhot’in cultural tradition, land and resources”. So, the question is, what happens to the $1.1-billion New Prosperity copper gold-project?

Here are some of my thoughts about Tsilqhot’in’s declarations.

Macroeconomic Forces vs. Key Trends

On the one hand, Taseko Mines plans to preserve the Fish Lake and, as stated on their website, “bring economic revitalization to the region”. On the other hand, the natives opposed mining rights in the area, so have federal panels rejected the proposal, citing damage to natural habitat. That split, between building economic infrastructure for the natives and preserving the forest and cultural ecosystem, will force Taseko Mines to consider the impact of First Nations on their expansion plans.

Stakeholder Conflict

The Tsilqhot’in’s declaration of the proposed mining site as a tribal park may be a precursor to more conflict between First Nations and Taseko Mines. Given the $110-million Taseko Mines have invested just for the New Prosperity development process, it is clear that the company is trying to refute what federal panels and First Nations claim. But simply redesigning the project to the potential harm to First Nations use is not enough. Taseko Mines has to prepare for a strategic approach, and this may mean gathering the support of political executives. Still, any political lobbying would be meaningless if the area is designated provincial Class A full protection status.

Now what?

The solution for Taseko Mines is obvious: negotiation and conciliation. This has worked in Stein Valley Nlaka’pamux Heritage Park, where a joint management system was established. Instead of arguing that the project’s environmental review is inaccurate, the executives of Taseko Mines would do better meeting the First Nations government. Taseko Mines need to build a positive relationship with the natives – now.