First Nations group pulls support for Seabridge’s KSM

Citing the need for improved consultation, a First Nations group has pulled its support for Seabridge Gold‘s (TSX: SEA, NYSE: SA) KSM mine in northwestern British Columbia.

The Hereditary Chiefs of the Gitxsan Huwilp government unanimously decided last week to withdraw its support for KSM in solidarity with the neighbouring Tsetsaut Skii km Lax Ha Nation’s (TSKLH), according to a statement issued Thursday. It had supported KSM’s development since 2013.

The move, which comes after years of petitions and challenges that have hobbled the mine’s development, follows demands by the TSKLH for “meaningful consultation” to address its concerns about the environmental risks that a planned 52-storey-deep toxic waste pond poses to waterways. In June, the B.C. Supreme Court sent KSM back to the province after finding it failed to consult enough with the TSKLH before deciding the mine had been substantially started.

“Gitxsan Hereditary Chiefs are looking far beyond the court order to real economic partnerships with collaboration and shared decision-making,” said Gitxsan Huwilp government co-chairs Brian Williams and Norman Moore in a joint statement. “First Nations are an essential fourth pillar of a strong northwest BC economy, with investors, corporate citizens and government being the other three.”

The decision by the Gitxsan Hereditary Chiefs “sends a strong message to the province,” said Darlene Simpson, the chief of TSKLH.

Legal dispute

It also compounds problems for Seabridge, which is mired in a legal dispute with developer Tudor Gold (TSXV: TUD). B.C. in May indefinitely delayed a decision on permit amendments required for KSM’s Mitchell Treaty Tunnels because about 12.5 km of the route crosses mineral claims held by Tudor on its early-stage Treaty Creek project.  

Located 65 km northwest of Stewart, B.C., KSM is one of the world’s largest undeveloped gold projects, according to Seabridge. A 2022 preliminary feasibility study estimated reserves totalling 47.3 million oz. gold and 7.3 billion lb. copper, with a net present value of $5.8 billion (C$8 billion).

One of TSKLH’s primary concerns is that the mine’s location threatens the Nass and Unuk river sheds, which support several species of Pacific salmon and eulachon. 

“TSKLH is not anti-development, as evidenced by our history of partnership with the resource industry,” added Simpson. “What we are is deeply concerned about the environmental and cultural impacts of putting the toxic waste dump for the largest gold mine in the world on our exclusive territory, next to pristine waterways we and wildlife rely on.”