Seabridge Gold Sees Substantially Started Designation At KSM Challenged By Indigenous Group
Seabridge Gold (TSX: SEA) has ran into some social issues at its massive KSM project in Northern British Columbia. The company has seen the Tsetsaut Skii km Lax Ha, or TSKLH, file a petition in the BC Supreme Court challenging the determination that the KSM project has “substantially started.”
The petition specifically has been filed against the province of British Columbia and related ministries, with the aboriginal group seeking a review of the decision by the Chief Executive Assessment Officer of the British Columbia Environmental Assessment Office. The group currently claims traditional territory in northwestern BC, and contests rights of the Nisga’a Nation and Tahltan Nation over an eastern portion of the KSM project.
TSKLH is currently looking to obtain a declaration that the province of BC failed to consult the group in relation to the substantially started designation awarded to KSM back in July. Additionally, they seek to obtain an order that nullifies the designation on the basis that the province failed to fulfill its duty to consult, failed to discharge its duty of procedural fairness, and that the designation is unreasonable as a result.
The substantially started designation is crucial for Seabridge and its KSM project. Under current rules, an environmental assessment certificate for a project expires if the project has not been substantially started by the deadline provided. However if a project has been substantially started, an environmental assessment is no longer subject to expiry. For KSM, the environmental assessment had a deadline of July 29, 2026, however the designation was awarded on July 25, 2024.
For Seabridge’s part, the company claims that TSKLH was included in the assessment processes from their viewpoint. TSKLH is said to have received a copy of the Seabridge’s application for the determination the day after it was submitted, with the group having repeatedly asked for in-depth consultation on the matter, to which the province responded. TSKLH was also provided the draft report from the Environmental Assessment Office on the application, and provided a month to review the information. TSKLH is also said to have made a submission related to the report on July 19.
“Seabridge’s application for a ‘substantially started’ determination was widely supported by the communities of northwest British Columbia, including Indigenous communities. TSKLH were provided the relevant information early and participated in the Province’s review process, including submitting comments for the Province’s consideration. TSKLH may not agree with the ultimate ‘substantially started’ determination, but Seabridge is confident that there is ample evidence that the determination was reasonable. Seabridge plans to participate in defending the validity of the ‘substantially started’ determination and will be conferring with its legal counsel on the ways in which it may do so,” commented Seabridge CEO Rudi Fronk.
The current substantially started designation is said to be unaffected by the petition, with a final decision on the matter expected to take a year or more.
Seabridge Gold last traded at $21.07 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
