Osisko Development Company (TSXV,NYSE: ODV) expects to receive final approval from the Department of Energy, Mines and Low Carbon Innovation by the end of this year for its Cariboo Gold project near Wells, BC

The project receives reaction from some quarters XHowever, atśūll First Nation is threatening a legal challenge if its concerns are not addressed.

A year ago the Cariboo Gold mine received environmental certification and this week the Mining Act permit was referred to the Ministry of Energy, Mines and Low Carbon Innovation for final decision.

But the Xatśūll First Nation objects and is threatening legal action, saying they are unhappy with negotiations over the economic benefits agreement. They also express concerns about the mine’s environmental impacts, including on reindeer habitat.

According to the Ministry of Environment, Xatśūll did not object to the mine during the BC Environmental Assessment process.

The ministry approved an environmental certificate for the project in October 2023. The ministry noted that this was the first project to be “fully evaluated” under the new 2018 scope. Environmental Assessment Act.

“All three countries in whose territory the project activities will be carried out participated in the environmental assessment,” the ministry said in a press release. “Lhtako Dené Nation and Williams Lake First Nation submitted notices of approval and Xatśūll First Nation notified ministers that they did not object to the project.”

But not objecting is not quite the same as consent, and XThe atśūll, formerly known as the Soda Creek Indian Band, say the project did not receive approval from them.

“Any approval-based decision-making for the project must be based on the laws and values ​​of Xatśūll and Declaration of the Rights of Indigenous Peoples Act (DRIPA) and United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP),” the First Nation said in a news release.

“Xatśūll has previously notified the provincial Environmental Assessment Office that it does not approve the project and will continue to do so until its concerns are adequately addressed.

“Although Xatśūll is currently at the table with Osisko, the country wants Osisko to reach an agreement with Xatsull before taking any steps to complete the permitting process.”

Chief Rhonda, Xatśūll Kukpi7 said: “We emphasize that Xatśūll wants to see sustainable resource development in our region, but it is noteworthy that in 2024 the province and Osisko continue to move forward with this mine without our permission, contrary to DRIPA and UNDRIP.” Phillips.

“If permitting processes proceed without addressing our concerns, the permits issued will be highly vulnerable to legal challenges.”

In response to Xatsull’s challenge to the project, Osisko CEO Sean Roosen points out that the company signed benefit agreements with two other First Nations (Lhtako Dené Nation and Williams Lake First Nation in 2020).

“Over the past two years we have made good faith and reasonable efforts to reach agreement with the Xatśūll First Nation, including reasonable offers for financial and other benefits along frameworks substantially similar to those offered to and accepted by other Indigenous communities,” he said. . “Our efforts are focused on providing meaningful benefits to all Indigenous nations while ensuring the project remains viable.

“We must ensure that the integrity of the permitting process is respected because we believe the consultation on this project was robust. We stand by our record to date of meeting our obligations and expect the provincial government to act within its authority. Our commitment to engagement with the Xatśūll First Nation will continue after the permit decision is made.”

The company said it expects to be compensated Mining Law Permission will be granted sometime in the fourth quarter of this year.

Osisko Development estimates the initial capital cost for phase 1 of the Cariboo Gold project at $137 million, but estimates total capital expenditure over the life of the mine to be $1 billion.

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