Company abandoned coal project over dispute with first nations

Premier Christy Clark's announcement of a $1.36-billion investment in a coal mine near Hudson's Hope was met with a puzzled reaction from the northeast British Columbia community's mayor on Wednesday.

Clark, who is leading a delegation of 130 B.C. companies and organizations on a trade mission through Asia, announced in Beijing that backers of the Gething coal project have confirmed their willingness to invest $860 million in the underground mine.

A proposal for a second northeast B.C. mining project valued at about $500 million was also announced, although Clark in a conference call declined to specify the location.

Both projects would be financed by investors from Asia.

Karen Anderson, mayor of Hudson's Hope, said the government's announcement did not conform with her understanding of the situation.

The district looks favourably upon the project, which would employ about 400 full-time workers during a 40-year mine life, because it would support local economic growth and development.

But Anderson said Gething proponents Canadian Kailuan Dehua Mines Co. announced in September that the project was being abandoned due to an irresolvable conflict with the West Moberly First Nation, one of three aboriginal groups with a territorial interest in the mine property.

West Moberly Chief Roland Willson could not be reached for comment.

The mine proponent did not respond to The Vancouver Sun's request for an interview.

"Dehua had called us [at] the end of September and told us at this time they were walking away from the project because they could not get any approval or any kind of permits because they were being stalemated by first nations. So I'm kind of wondering what's going on," Anderson said.

She added that the proponents also "walked away" from plans for housing development on land they purchased in the community.

"They phoned and said they would not be proceeding unless there was some significant change in the near future - mainly the agreement with first nations for access onto that land."

Anderson added that the proponents were not even able to get a permit for bulk sampling at the mine site; without the ability to collect marketsized samples of their coal, it would not be possible for the company to line up potential customers.

A scan of B.C.'s environmental assessment office website shows that no documents on the project have been filed since the proponent's original statement in 2006.

Clark said she's confident that progress can be made to bring Gething into production, including resolving first nations issues.

"I don't know that it's fair to say that it was ever off track," Clark said. "Negotiations with first nations are always ongoing and it takes time to negotiate with the various first nations that are there.

"I think they've been continuing to work through the issues with the first nations up in the northeast and I think they're slowly but surely getting there with it.

"I know they took the first nations on a tour of the proposed development recently. That went very well, I'm told."