The federal government today rejected Taseko's contentious $800-million Prosperity gold and copper mine near Williams Lake over concerns about significant adverse environmental impacts of the project.
The B.C. Liberal government had been pressing the federal government to approve the project, arguing the economic benefits and jobs produced by the mine outweigh environmental impacts identified in a federal review.
The province's environmental assessment had earlier given the project the greenlight.
At the same time as it announced the rejection of the Prosperity project, Environment Minister Jim Prentice said the Mount Milligan mine northwest of Prince George was approved.
It's not clear what is the significance on the Mount Milligan project, as Prentice had already given the project the greenlight.
Terrane Metal's has already began preliminary construction on the $917-million Mount Milligan gold and copper mine, located 155 kilometres northwest of Prince George.
With a decision initially expected in September, provincial and national First Nations groups had banded together to demand the federal government reject proposed Prosperity mine.
Business and industry interests had said that a rejection of the Prosperity project would chase away investment.
Taseko had said the project would create 500 direct jobs, another 1,200 indirect jobs during a 20-year period.
The local, regional and provincial economies will also benefit from spending and taxes, said the company.
A review by the B.C. Environmental Assessment Office found the project would have significant adverse effects on fish and fish habitat, but concluded the effects were justified.
The federal panel concluded there would be significant adverse environmental effects on fish and fish habitat, traditional First Nations use and on potential or established Aboriginal rights or title.
Taseko's plan would turn a lake into a storage pond for mining waste, destroying about 90,000 rainbow trout, according to the panel. The company's plan to replace the lake with a new man-made lake to support 20,000 rainbow trout is questionable, said the panel.
The panel also concluded that the project, in combination with past, present and reasonably foreseeable future projects would result in a significant adverse cumulative effect on grizzly bears in the south Chilcotin region and on fish and fish habitat.
