A British Columbia Supreme Court has ruled that the provincial government did not properly fulfill its duty to consult the Tsetsaut Skii km Lax Ha Nation before making a key determination related to one of the world’s largest undeveloped gold mining projects.
The case centres on Seabridge Gold’s KSM Mine in northwestern British Columbia, which the company has described as the largest undeveloped gold mining project globally. The dispute arose after the province declared that the project had been “substantially started,” a designation that removed the requirement for a new environmental assessment despite the original certificate being issued in 2014.
Justice Emily Burke found that the province failed to meet its constitutional obligation to consult the First Nation before issuing that determination. As a result, the court ordered that the decision be returned to the Ministry of Environment for reconsideration. The Tsetsaut Skii km Lax Ha Nation will now have 90 days to submit further arguments to the province.
Seabridge Gold has stated that it has invested approximately $1.2 billion into the project, including $208 million since applying for the “substantially started” designation in January 2024. The provincial government granted the determination in July of the same year, prompting the legal challenge from the First Nation.
The Tsetsaut Skii km Lax Ha Nation argued that it had not been properly consulted and raised concerns that a man-made pond intended to store mine wastewater would be located within its traditional territory, posing environmental risks to its lands and waterways.
Following the ruling, Chief Darlene Simpson welcomed the court’s decision, stating that the Nation was relieved the province would now be required to conduct proper consultation.
“We’re relieved the province is finally required to consult properly, based on its own conclusion that our territory bears the brunt of the environmental risks of the toxic waste dump for the world’s largest gold mine, threatening our pristine traditional waterways,” Simpson said in a statement.
The British Columbia Environmental Assessment Office confirmed it is reviewing the ruling to assess its implications and determine next steps. It also reiterated its commitment to fulfilling its constitutional duty to consult First Nations and comply with obligations under the Environmental Assessment Act.
Previously, the province had argued that adequate consultation had already taken place and that it was not required to formally assess the strength of the Nation’s territorial claims during the determination process.
Seabridge Gold CEO Rudi Fronk said the company is satisfied that the court also found the “substantially started” designation itself to be reasonable, adding that work on the project will continue while the province carries out its reassessment.
He also noted that physical developments at the KSM site have been further enhanced since the determination was made. Fronk expressed appreciation for the continued support of the Nisga’a Nation, the Tahltan Nation, and the Gitxsan Hereditary Chiefs Office, all of whom the company says back the project and the original designation.
The ruling adds a new layer of regulatory and consultation scrutiny to a project already considered one of the most significant undeveloped mining developments in the world, as provincial authorities and Indigenous stakeholders revisit the approval framework.
