KEY POINTS
- First Nations appeal the approval of BMC Minerals’ Kudz Ze Kayah project over lack of consultation.
- The Kaska Nation claims consultation restrictions prevented proper engagement.
- BMC Minerals continues to seek necessary permits as legal challenges persist.
First Nations in the Yukon have taken their case back to court to challenge the approval of BMC Minerals’ Kudz Ze Kayah (KZK) polymetallic mine, claiming that they were not properly consulted on the project.
The Kaska Nation, whose traditional territory includes the KZK site, argued that the project’s economic feasibility was not adequately discussed, which they believe violates their consultation rights.
Kaska Nation’s consultation concerns
The Kaska Nation’s lawyers sought to overturn a prior Supreme Court ruling that mostly favored the mine. They argued that the Yukon Environmental and Socio-economic Assessment Act had failed to consider economic feasibility, a key concern for the First Nation.
Furthermore, they challenged the claim that they had frustrated the consultation process by not responding to correspondence or attending meetings on time.
This appeal follows a ruling six months ago when the Yukon Supreme Court decided that Crown bodies had mostly fulfilled their duty to consult, except for an issue raised in a letter submitted just before the project’s regulatory approval in 2022. This prompted an additional consultation meeting that led to the re-issuance of approval for the KZK project.
Legal challenges over consultation restrictions
According to Mining.com, the Kaska representatives also argued that the consultation was overly restricted, dictating when and how it would occur and limiting the exchange of documents. They believe this hampered their ability to fully engage in the process.
Meanwhile, lawyers for both the Canadian and Yukon governments maintained that there were no errors in the previous ruling. They insisted that the Kaska Nation was seeking outcomes beyond the scope of the consultation process.
Marlaine Anderson-Lindsay, representing Canada’s attorney general, emphasized that economic feasibility and financial concerns had been addressed during the initial consultations.
BMC Minerals, owned by UK-based BMC Ltd., has continued to move forward with its project, working to secure water and mining permits. The company has received confirmation from government authorities that the KZK project remains approved under new conditions following the consultation meeting.
Project economic outlook
The Kudz Ze Kayah project, according to a 2020 feasibility study, has significant potential. It boasts an after-tax net present value of $617 million, an internal rate of return of 45.9 percent, and is expected to produce large quantities of zinc, copper, silver, lead, and gold during steady-state operations.
Despite these promising financial projections, ongoing legal challenges from the Kaska Nation continue to raise questions about the future of the project and its impact on Aboriginal rights and the environment.
