Canadian mine gets OK, despite Alaska worries
Date: 16-Dec-02
Country: CANADA
Author: Allan Dowd
A plan by Redfern Resources to reopen the Tulsequah Chief mine near
the U.S. border, about 80 km (50 miles) northeast of Juneau, Alaska,
would provide a major economic boost to the area and show that British
Columbia supports the mining industry, the officials said on Friday.
"This decision is about achieving balance and moving toward resolution
and increased certainty for all concerned," said Stan Hagen, the
provincial resources minister.
Redfern is a unit of Redcorp Ventures (RDV.TO). The news boosted
Redcorp stock 11 Canadian cents, or nearly 46 percent, to 35 Canadian
cents on Friday.
The mine's approval is still subject to several conditions, but a
Redcorp official said they "were not onerous."
Critics say the project is a threat to the Taku River, the source of a
commercial salmon fishery worth $2.7 million a year to Alaskans. It is
also an important habitat for salmon caught by sport fishermen and for
three types of trout.
Provincial officials approved the mine's development once before, but
the permit was quashed when a court ruled they had failed to
adequately consult with the Taku River Tlingit First Nation, which
says the site is on its historic territory.
Redfern's plan calls for a 2,500-tonne per day underground mine
producing copper, lead, zinc, gold and silver. The mine site on the
glacier-fed Taku River was originally staked in 1923. It operated for
seven years before closing in 1957 because of low ore prices.
The project calls for construction of a 120 km (75-mile) road through
the wilderness to Atlin, in northwestern British Columbia, near the
Alaska and Yukon borders. That would give the project land access to
Skagway, Alaska, where the ore would be loaded on ships.
Critics said the road poses a danger to wildlife by allowing people an
easier route into the wilderness. The province said on Friday it will
require Redfern limit public access to the road and prohibit hunting
in the right of way.
Alaska Gov. Tony Knowles tried in 1998 to get the U.S.-Canada
commission that oversees transborder issues to review the mining
proposal, but the request was blocked by Canadian officials.
Knowles, a Democrat, left office this month and was replaced by
Republican Frank Murkowski, a 22-year veteran of the U.S. Senate who
campaigned on a platform of promoting mining, logging and oil
drilling.
Murkowski's spokesman, John Manly, said while the new governor
supports more mining, Alaska intends to keep a close eye on the
project. "We intend to make sure it is done right," Manly said.
Redfern, which has spent years promoting the project, says it will
actually help the environment because it will stop the leakage of acid
into the river from the former mine.
"We're looking forward to getting going," said Redcorp Ventures
president Terence Chandler, who believes Alaska's concerns have been
addressed in the latest development plan.
The Telsequah project has an estimated 7.9 million tonnes of minable
ore.
