British Columbia has approved Imperial Metals’ (TSX: III) plan to deepen and extend the Springer pit at the Mount Polley copper-gold mine, adding about eight more years.
The decision comes after an August court ruling that upheld key permits challenged by an area First Nation. The consent order from Environment and Parks Minister Tamara Davidson, and Mining and Critical Minerals (MCM) Minister Jagrup Brar, lets the expansion move forward under a provincial Mines Act permit amendment.
“We agree that any changes to the effects from the proposed Springer Expansion assessed under the Act would not be significant,” the ministers said in their reasons for the decision published last week.
Changes to the mine plan include deepening the current pit, expanding rock-disposal areas and isolating possibly acid-generating materials in the old Cariboo pit at closure. The company will also continue to treat and release water into Quesnel Lake as permitted.
Mount Polley is an open-pit mine in BC’s Cariboo, about 56 km northeast of Williams Lake. The mine’s 2014 tailings dam failure at Polley Lake, Hazeltine Creek and Quesnel Lake has become a touchstone for BC’s strengthened mining code and tailings oversight. After a care-and-maintenance spell, operations restarted in late June 2022; last year the mine produced 35.7 million lb. copper and 39,108 oz. gold.
Confined to property
The Environmental Assessment Office found that the changes to the mine plan are “not likely to result in significant effects.” This is because the work stays within the mine’s fences.
Imperial’s controlling shareholder is Calgary billionaire oil businessman Murray Edwards, the executive chairman of Canadian Natural Resources (TSX: CNQ; NYSE: CNQ). He holds about 45% of the Imperial, according to shareholder disclosures.
First Nation challenge
The Environmental Assessment Office (EAO) says it consulted the Williams Lake First Nation and Xatśūll First Nation as part of its review.
The approvals land three weeks after the BC Supreme Court dismissed Xatśūll First Nation’s bid for an injunction and judicial review of the four-metre tailings-dam lift that preceded the expansion.
The court found the decisions “were reasonable and were made fairly,” following sufficient consultation, Imperial said when it reported the ruling early last month.
Community reaction has been mixed: Williams Lake First Nation Chief Willie Sellars welcomed the ruling, calling Mount Polley “a vital part of our regional economy,” Imperial said. The Union of British Columbia Indian Chiefs, however, denounced the court decision.
In their reasons for decision, the ministers said they agreed with the EAO’s conclusions [on] any potential impacts on Xatśūll First Nation’s and Williams Lake First Nation’s Section 35 rights under Canada’s constitution.
“[Their rights] are being appropriately mitigated through Mines Act and Environmental Management Act permit requirements and regulations,” the ministers said.
“Although consensus was not reached with Xatśūll First Nation, we are satisfied that the process was of appropriate depth and scope and sufficient to inform our decision on consent for the Springer expansion.”
Safety first
The province underlined that Mount Polley must meet strengthened safety rules developed after the tailings incident, with further updates in 2024. Compliance and enforcement officers are to continue monitoring the site.
The earlier interim approval this spring lifted the tailings-dam crest by four metres to provide capacity during runoff.
Imperial owns 30% of the Red Chris mine with partner and operator Newmont (TSX: NGT; NYSE: NEM). After a landslide incident in late July trapped three underground workers, the trio returned safely to surface two days later.
Mount Polley continues to see exploration drilling. Assay results last month showed a step-out discovery about 4.15 km north of the mill, including 7 metres of 0.7% copper and 0.27 gram gold per tonne from 383 metres. Drills also cut 20 metres of 0.25% copper and 0.96 gram gold per tonne from 417.5 metres.