An aerial view of Taseko Mines’ New Prosperity project in central British Columbia. Credit: Taseko Mines.
Canada’s Taseko Mines (TSX, LON: TKO)(NYSE American: TGB), the Tŝilhqot’in Nation, and the Province of British Columbia have signed an agreement that resolves a complex, long-standing conflict over the New Prosperity mineral tenures.
The tenures, located about 125 km southwest of Williams Lake in the Teẑtan Biny (Fish Lake) area of Tŝilhqot’in territory, cover one of Canada’s largest undeveloped copper-gold deposits. The New Prosperity project holds an estimated 5.3 billion pounds of copper and 13.3 million ounces of gold in measured and indicated resources.
Negotiated over several years, the agreement ends all litigation between the parties and clarifies the path forward for any future development. It balances Taseko’s commercial interests with the cultural and environmental concerns of the Tŝilhqot’in Nation, marking a significant milestone in the ongoing reconciliation process in B.C.
Stuart McDonald, president and CEO of Tesko Mines, said the agreement resolves a damaging and value-destructive dispute. “It [also] and acknowledges Taseko’s commercial interests in the New Prosperity property and the cultural significance of the area to the Tŝilhqot’in Nation. Any future development at New Prosperity will benefit the Tŝilhqot’in people, and will only occur with their free, prior and informed consent.”
Under the deal, the B.C. government will pay Taseko $75 million. In turn, Taseko will transfer a 22.5% equity interest in the New Prosperity mineral tenures to a trust for the future benefit of the Tŝilhqot’in Nation. That interest will be passed on if and when the Nation agrees to proceed with development.
Taseko retains a 77.5% majority stake in the project and can divest portions of its interest, including to other mining firms—provided the Tŝilhqot’in Nation consents to any future exploration or mining. Taseko has agreed not to act as the proponent or operator of any future project at the site.
A consent agreement between Taseko and the Tŝilhqot’in Nation ensures that no mineral activity can proceed without the Nation’s approval. The province and the Nation will also work together to develop a framework for seeking consent through the environmental assessment process.
The Tŝilhqot’in Nation and BC committed to undertaking a land-use planning process for the area of the mineral tenures and a broader area of land within Tŝilhqot’in territory. The province pledged to provide funding to the Tŝilhqot’in Nation to facilitate the land-use planning process and to support a cultural revitalization fund.
B.C.’s minister of mining and critical minerals, Jagrup Brar, said resolving the conflict has been a priority. “The agreement demonstrates B.C.’s commitment to reconciliation and ensuring that the interests of First Nations and mining companies can advance together.”
Nits’ilʔin Roger William of the Xeni Gwet’in described the agreement as a turning point. “For over three decades, we’ve had conflict in the Teẑtan Area. For my oldest son, for many Tŝilhqot’in, that conflict has always been there, for their entire lives. Now we are turning the page. Tŝilhqot’in consent is protected: there is no longer the threat of exploration or mining without our consent. I hold my hands up to everyone that worked hard over the past five years to achieve this historic agreement that reflects true reconciliation, including the Province and Taseko Mines Limited. This is a time to celebrate for our people and honour all those who made this resolution possible.”
