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Nice tidy profit at West Fraser

The Nak'azdli First Nation says it expected to be consulted on the transfer of the proposed $917-million Mount Milligan gold and copper mine to Thompson Creek Metals Inc. from Terrane Metals Corp.

The Nak'azdli First Nation says it expected to be consulted on the transfer of the proposed $917-million Mount Milligan gold and copper mine to Thompson Creek Metals Inc. from Terrane Metals Corp.

The approximately $700-million purchase by Thompson Creek of Terrane Metals was completed last week, putting the mine, under preliminary development, in the hands of Thompson Creek Metals. Thompson Creek, with corporate offices in Vancouver, Toronto and Denver, Colo., already operates the Endako molybdenum mine near Fraser Lake, west of Prince George.

The First Nation says the courts of B.C. have made it clear that such a change in control is subject to consultation with First Nations in whose territory the project is located.

"Our most serious concerns remain the long-term environmental damage that will be caused to our lands, waters and people if the project proceeds as is and the lack of meaningful consultation today with Nak'azdli, whose unceded lands, rights and culture are in jeopardy," said Nak'azdli chief Fred Sam.

The issue of the need for consultation for mergers is not completely clear, however.

In a 2004 Supreme Court of Canada ruling, the high court said the government had not properly consulted the Haida Nation over the transfer of a forest licence from MacMillan-Bloedel to Weyerhaeuser, part of Weyerhaeuser's purchase of MacMillan-Bloedel, and had a duty to do so.

The issue that was of concern to the court in the Weyerhaeuser case on the transfer of timber harvesting rights was on planning and its impact on timber use.

While there are issues of land use at dispute in the proposed Mount Milligan gold and copper mine, it's not clear whether the merger, by itself, would trigger the need for consultation. The province maintains it has already conducted consultations with the province during the regulatory approval process. (The Nak'azdli have launched court challenges of the provincial and federal environmental approvals of the project).

Sam said the Nak'azdli remain open to engaging in consultations. "There can never by any certainty for this mine as long as we remain excluded and our concerns are not met," added Sam.

The proposed mine is located 155 kilometres northwest of Prince George, making it the closest new mine development to the city.