BC’s NW Transmission Line gets environmental approvals

Mining projects in British Columbia’s northwest are another step closer to tapping into the provincial grid after the federal government gave the environmental go-ahead for the Northwest Transmission Line.

The May 6 announcement came just before the start of B.C. Mining Week and less than three months after the BC Environmental Assessment Office gave provincial approval.

BC Hydro can now go ahead with development of the $404-million project to build a 344-km, 287-kV transmission line from Terrace to Bob Quinn Lake along Highway 37.

Canadian taxpayers are funding $130 million of the project through the federal government’s Green Infrastructure Fund, $180 million is coming from AltaGas (ALA-T), and BC Hydro will cover the remaining $94 million.

BC Hydro plans to have the transmission line completed before 2014 and launched negotiations with contractors Valard Construction and Burns and
McDonnell. Golder Associates and Hatch have been chosen
for environmental and construction management services, respectively.

The transmission line is poised to be a lifeline to a number of northern mining projects, some of which already have contingencies such as diesel-power incorporated while others assume that the line will go through. 

Copper Fox Metals (CUU-V) was quick to praise federal approval as the company works to develop its polymetallic Schaft Creek project, while Imperial Metals‘ (III-T) Red Chris gold-copper project could be one of the first to benefit. 

The Galore Creek copper-gold-silver project, controlled equally by NovaGold Resources (NG-T, NG-X) and Teck Resources (TCK.B-T, TCK-N), is also largely dependent on the line. The two companies were originally slated to contribute $158 million towards the line before temporarily suspending development of the mega-project.

Seabridge Gold‘s (SEA-T, SA-X) KSM gold project and Pretium Resources‘(PVG-T) nearby Snowfield and Brucejack gold projects are also set to benefit. 

A 2010 study by the B.C. government identified 25 major exploration projects and proposed mine developments in the corridor. 

 In mid-April, the Tahltan First Nation voted 82% in favour of the project, which will run roughly 70 km through Tahltan territory. In March, the Nisga’a Nation’s legislature approved an impact benefits agreement for the project and is seeking formal approval.

The Gitanyow and Lax Kw’alaams First Nations, meanwhile, voiced their opposition against BC Hydro negotiations, and have vowed to block the project until the corporation changes its approach.