Friday, September 14, 2012

MiningWatch Canada Flags Prosperity Mine Risks

Prosperity Mine Too Risky for Investors


MiningWatch Canada today issued a statement that Taseko Mines' proposed Prosperity Mine is at too great a risk of not being approved to be a good investment.



MiningWatch Canada put forward the following points to back up its claim:
1. Taseko's New Prosperity Project continues to face major challenges in obtaining necessary environmental approvals. 
2. The New Prosperity does not have and is unlikely to get a social licence to operate from the affected First Nations communities and Aboriginal governments. 
3. The New Prosperity capital and operating cost estimates do not include key factors that will affect the economic viability of the project and share price volatility is likely to continue. 
4. Political support from provincial and federal governments for the New Prosperity Project is uncertain.
5. The fierce opposition to this project from Aboriginal peoples and environmental organizations may result in lengthy litigation and could have implications for the future of other extraction projects in BC.
The site mentions that Taseko Mines has over 55% of its net assets listed in the Prosperity Mine project, which still faces an environmental review process that it has failed once already.

The Canadian Pension Plan holds about $4 million worth of Taseko Mines shares and MiningWatch Canada is in the process of notifying them of their analysis.

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