Influence of First Nations on the Development of Taseko Mines Ltd.
In 2010, Taseko Mines Ltd. proposed to start the New Prosperity mine project at Fish Lake, Chilcotin B.C, however it was rejected by the federal government due to concerns regarding the environment and Tsilhqot’in First Nation people. Ultimately, First Nations declared victory over the land and will protect it by officially announcing the area as a tribal park.
Taseko invested much time to fulfill this proposal, but opposition from culturally and environmentally conscious stakeholders and pressure to maintain social responsibility dominated. Nonetheless, they are prepared to account for this loss. While dealing with New Prosperity, Taseko succeeded in taking over Curis Resources Ltd. (principal asset being Florence Copper Project). In the short term, this will sustain Taseko and give the company time to plan investments in other areas. The low initial capital costs required will allow Taseko to allocate funds across multiple investments, for example their successful Gibraltar Mine and developing Aley Niobium project in northern B.C.
Still, in the long term, Taseko should continue to develop environmental and cultural protection methods (outsourcing the effort to save time) to persuade the First Nations government the economic benefits of mining in Fish lake; perhaps, working on a joint venture with the First Nations people, creating job and revenue opportunities for them. The benefit resulting from binding external factors is Taseko losing the risk of destroying the company’s reputation over potentially damaging the First Nation land. Also, they may attract environmentally and aboriginal culture conscious investors.
Resources:
http://www.cbc.ca/news/business/first-nations-declare-victory-against-taseko-s-b-c-mine-1.2325102