Canadian base metals producer Taseko Mines (TSX: TKO) has inked a deal with a British Columbia-based indigenous nation regarding the company’s intentions to kick off the regulatory approval process for its Yellowhead copper project.
The agreement, the Vancouver-based miner said, represents its commitment to recognize and respect local communities’ inherent rights to govern its lands.
It also highlights “the importance of assessing the project in accordance with the Nation’s values, laws, and community aspirations to make an informed decision on the project,” Taseko said.
Mining executives across the globe have stepped up efforts in the past years to gain and maintain social support for its projects and operations.
Mining executives across the globe have stepped up efforts in the past years to gain and maintain social support for its projects and operations. The concept, frequently called “social licence to operate” (SOL), is now at the centre of most business strategies, as the mining and metals sector faces greater scrutiny from end consumers, demanding a transparent, ethical supply chain, as well as a lower carbon footprint.
The International Council on Mining and Metals (ICMM) has responded accordingly, releasing last year a new version of its guidelines on handling grievances in mining-affected communities amid increased pressure for miners to carry out socially-responsible investments and operations.
Originally published in 2009, the new version outlines good
practices on how mining and metals companies should design effective mechanisms
to handle and resolve community concerns and objections. It also provides
practical tools to support companies with implementation.
Updated figures
Taseko recently completed a new development plan and updated study for Yellowhead, located 150 km northeast of Kamloops, BC.
The update added 100 million tonnes to reserves and improved
the economics and pegs pre-production capital costs for an operation with a
25-year mine life at C$1.3 billion.
Yellowhead now contains reserves of 817 million tonnes
grading 0.29% copper equivalent (or 0.28% copper, 0.03 g/t gold and 1.3 g/t
silver).
Taseko also owns the operating Gibraltar mine and is advancing the Florence copper project in Arizona. In December, it announced a truce in a long-dragged battle with the Tsilhqot’in First Nation, by beginning talks with the group, mediated by the province, regarding its New Prosperity project in B.C.
The company acquired Yellowhead in 2014 in an all-stock transaction valued at C$13 million.