Canada’s auditor general snaps at climate, Indigenous gaps in critical minerals strategy
Government program issued in 2022 budgets C$3.8 billion on critical minerals support over eight years.
The Xatšŭll First Nation may sue the British Columbia government and Osisko Development (TSXV: ODV; NYSE: ODV) if its concerns aren’t addressed in the permitting process for the Cariboo gold project.
The project threatens community health, cultural sites, and traditional practices due to potential contamination and restricted land access, the Nation said in a statement Thursday.
“If the permitting processes move ahead without addressing our concerns, any permits that are issued will be highly vulnerable to legal challenges,” Chief Rhonda Phillips said.
The Xatšŭll has called on the British Columbia government and Osisko Development to halt the project until its issues are resolved, and its free, prior and informed consent is granted.
Cariboo is in the permitting stage, with a Jan. 2023 feasibility study outlining an initial production to start next year. The project received an environmental assessment certificate in Oct. 2023, with final permitting expected by December. It aims for ~164,000 oz. gold annually, peaking at over 220,000 oz. during its 12-year mine life.
The project requires an initial investment of C$137 million, with an additional C$451 million for expansion, totalling C$588 million for the life of the project. It has a It has an after-tax net present value of C$502 million at a 5% discount rate and a 21% internal rate of return at a $1,700 per oz. gold price.
The Xatšŭll says it wants sustainable development but insists it must be done in accordance with the Declaration on the Rights of Indigenous Peoples Act (DRIPA) and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).
They cite the Mount Polley tailings disaster of Aug. 4, 2014.
“Xatśūll Territory is ‘ground zero’ for the harmful effects of the province’s unilateral regulation of resource extraction activities, which resulted in the ongoing environmental catastrophe of the Mount Polley tailings failure,” Phillips alleged.
The Nation contends it can’t fully exercise their Aboriginal title and rights. Mining disturbances disrupt essential rituals and seasonal gatherings and erodes Xatśūll’s profound connection to the land and their ancestors, it said.
The Northern Miner has reached out to the B.C. government and Osisko for comment.
Key issues the Xatśūll raised include the potential negative impact on the threatened Southern Mountain subspecies of the Barkerville woodland caribou and concerns over cumulative environmental effects that infringe on Xatšŭll’s Aboriginal rights.
Phillips’ statement noted the ongoing effects of legacy mining. Despite years of remediation, it still affects the community’s ability to practice traditional activities and maintain their cultural heritage, she said.
Osisko Development last traded at C$2.52, up 0.8% or C2¢ per share, having touched C$2.32 and C$4.30 over the past 12 months. It has a market capitalization of C$263.4 million ($189.9m).
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