Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
An environmental study into Taseko’s (TSX:TKO) billion-dollar New Prosperity mine proposal in British Columbia, Canada, revealed it would pose “several significant adverse environmental effects”.
The Canadian Environmental Assessment Agency report, released late Thursday, said the company underestimated the volume of water that would leave a tailings storage facility and there was “considerable uncertainty” regarding Taseko’s contingency plan for water treatment.
Taseko, which has been trying to develop New Prosperity for seven years, said in a statement Friday it will challenge the federal government’s findings because “they contradict best practices in place around the world today and expert opinion and analysis.”
While the panel made no recommendations as to whether or not the project should proceed and said the final decision will be up to the federal government, the panel said the project would result in adverse environmental effects.
Taseko noted that the panel is not a decision making authority. The panel report is information for the Federal evironment minister and it will be considered along with other information upon which the federal government will base its decision.
The company announced a second bid for favourable environmental assessment from the feds prosperity after its initial plan was rejected in 2011.
The Prosperity deposit is a gold-copper porphyry with a one billion tonne measured and indicated resource containing 5.3 billion pounds of copper and 13.3 million ounces of gold.
At metal prices of US$1,000/ounce gold and US$3.15/pound copper the project has a pre-tax net present value of C$3 billion and a 40% pre-tax internal rate of return.
A report from two years ago estimated that Prosperity would generate $9.8 billion in tax revenues for the federal and BC government over the next 20 years.
Environmental assessment took 24 months.
On Wednesday Taseko reported a profit rise of $12.9 million to $19.5 million due to 30% rise in copper production.
New Prosperity is located 125 km SW of Williams Lake. Map fromInfoMine.
Image by Duron123 / Shutterstock.com
7 Comments
Apple
I advocate that all mining and mineral exploration and development be halted until Aboriginal land claims are settled across all of Canada. 100% settled. This also includes all sand and gravel and quarry operations. The same for all oil and gas exploration and extraction including the Oil sands and fracking. All First Nation royalties or resource sharing outlined and signed by all First Nations. In addition, all environmental issues should be settled and all environmental groups sign off on the rules and regulations.
The land claims must be settled to satisfaction of the First Nations and other stakeholders. Then new mining and environmental laws based on the results of the settlements should be drafted by Canada and the provinces.
But not a penny in exploration and development and not a penny in profits or taxes from mining until settled. This will allow everyone, First Nations, Canadians, Environmentalists and Industry to move forward in agreement. Then industry will understand where it stands and can decide if it wants to invest.
But I would insist no mining or extractive action until settled, 100% stopped until 100% settled.
Bin Laden
Great suggestion, why don’t we go back to caves and introduce dinosaurs to hunt as well. That’s what I advocate for
Brian Doubt
What a ridiculous suggestion Apple. I worked on the Taseko Lake project and its amazing what a little tiny lake was saved for the sake of the local native band. And now that’s not enough. People with hidden agendas like stopping mining in Canada should not be allowed to serve on these environmental boards. Science seems to take a back seat to politicking. What we need are politicians and citizens who understand what wealth we have in this country. I don’t know a single mining professional who would want to harm the environment. Urban dwellers can’t seem to grasp where minerals come from.
frankinca
Brian, I am in your camp, if what you say is independent of a personal financial investment. The generalities and no specifics ( numbers etc. ) leave me wishing someone would publish a few numbers and the basis for these numbers and let the elected government pushed by the interested public, make the decision, or am I being an optimist. Saving a lake or moving it seems to make sense. Mining does affect the lay of the land, just as people and houses and all the support they need. Apple is like the Biblical one who has knowledge based on the findings disclosed during Eden’s hay day! Like climate change, no one can really predict the outcome, only scare the masses into a plethora of action or inaction according to conjectures mostly and not relevant facts
The Prosperity project would be a good publically followed test case, to see how things should be done with the least effect on the people and surrounding property. Based on this premise it should continue and if a not-good result comes to light it can be settled in the courts and news media as well as the discontinuance of the project! Is there mining insurance that pays damages to those who suffer for bad mining techniques? Is the Romanian gold project difficulties a basis of the Agency’s findings. Is the agency scientifically staffed?
stardust
Apple, you don’t get it. If it isn’t mined, it’s grown. Period. If you aren’t living out of tents and caves right now, all the luxuries around you will disappear and/or become outrageously expensive to acquire. Reasonable, balanced solutions all around are the only way.
Suny
What a sad day for BC. Losing out on billions dollars to help pay for many projects in the province. Then people are going to complain that the government needs to raise taxes to pay for projects. There was a list of things that the project would pay for, its was extensive and things like this project would benefit the province and all of our well being.
Just remember the next time the government wants to raise taxes, someone said no to some 11billion dollars from a mining project.
Doug
Who will pay the bills if all industry is shutdown, tribal land claims must be dealt with without emotion or revised history.