Northern Interior First Nations challenges mine merger

The Nak'azdli First Nation has launched another court action that encompasses the planned $900-million Mount Milligan gold and copper mine, this time seeking a judicial review of the federal government's approval of Thompson Creek Metals Company Inc.'s purchase of Terrane Metals Corp.

Terrane Metals owned the Mount Milligan project located 155 kilometres north of Prince George, so Thompson Creek's successful $700-million takeover put the project in the company's hands.

The Nak'azdli is claiming that the federal government, through Industry Canada, did not properly consult them before the purchase was approved. The First Nation wants the federal government to set their decision aside.

"This is not against Thompson Creek Metals, but the government should talk to us," said Nak'azdli First Nation chief Fred Sam.

The federal government did not communicate at all with the First Nation on the ownership change, said Sam.

Industry Canada officials knowledgeable on the file were not immediately available for comment.

Thompson Creek Metals officials could not be reached for comment Wednesday.

Sam cited a Supreme Court of Canada 2004 Haida Nation ruling as evidence that consultations were needed.

In 2004, the high court ruled 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.

In a statement, Thompson Creek Metals noted that no claims had been made against the company. The company said, however, it intends to take steps to participate in the judicial review, an effort to protect its interests.

The company added that it is committed to working with First Nations, including the Nak'azdli, on benefits such as employment and training that could flow from the Mount Milligan project.

The Nak'azdli have already launched court challenges - at the provincial and federal level - over the regulatory approval of the Mount Milligan project.

Some preliminary development - including road upgrades - has started at the Mount Milligan gold and copper project. The main push on construction is planned for next spring.

The mine, with a forecast life of 15 years, is expected to create 400 jobs. Between 200 to 600 workers will also be needed during the mine's two-year construction period.