Gold exploration and development company Osisko Development is facing potential legal challenges over its Cariboo gold project in British Columbia, as the Xatśūll First Nation threatens to take legal action if its concerns are not addressed. The First Nation on Thursday called on Osisko and the provincial government to halt the project until a resolution is reached.

The Cariboo project lies within Xatśūll territory, and the First Nation is concerned about the project's potential impact on the Southern Mountain subspecies of the Barkerville Woodland caribou herd, among other environmental and cultural issues.

Despite these concerns and Xatśūll withholding consent for the project, the provincial Environmental Assessment Office issued an environmental assessment (EA) certificate for Cariboo in October 2023.

However, one year later, the First Nation claims negotiations with Osisko have been "unproductive", with "very minimal progress" made in addressing the Nation’s concerns.

“Although Xatśūll is currently at the table with Osisko, the Nation is asking for Osisko to reach an agreement with Xatśūll before taking any further steps to complete the permitting process,” said Xatśūll’s Kukpi7 Phillips.

The First Nation has also urged the provincial government to prioritise a collaborative process to address outstanding issues and to develop a consent-based decision-making framework for mining activities in Xatśūll’s territory.

“We emphasise that Xatśūll would like to see sustainabile resource development in our Territory, but it’s remarkable that in 2024 the province and Osisko continue to barge ahead with this mine without our consent,” Phillips said.

He warned that any permits issued without addressing the Nation’s concerns would be “highly vulnerable to legal challenges”. Referring to the Tsilhqot’in case, Phillips noted that the Supreme Court of Canada ruled that the Crown may be required to halt a project if it began without Indigenous consent, particularly if continued development unjustifiably infringed on Aboriginal title.

He said the Cariboo project could also be at risk if Xatśūll brought a Blueberry River infringement claim against the province based on the cumulative effects from industrial developments that had been authorised.

The Xatśūll First Nation’s statement comes as Osisko reports that its Cariboo project has been referred to the statutory decision-maker in the BC Ministry of Energy, Mines, and Low Carbon Innovation for a decision on permits. Osisko also stated that the Environmental Management Act permits had been reviewed, and the company expected final decisions on the project in the fourth quarter of 2024.

Osisko chairperson Sean Roosen said the company had signed participation agreements with each of the Lhtako Dené Nation in 2020 and the Williams Lake First Nation in 2022, but acknowledged that it was yet to reach an agreement with the Xatśūll First.

“We have made good faith and reasonable efforts in the past two years to reach agreement with Xatśūll, including reasonable offers for financial and other benefits along substantially similar frameworks as those offered to, and agreed by, other Indigenous communities,” said Roosen. “We must ensure the integrity of the permitting process is respected, because we believe the consultation on this project has been robust. We stand by our record to date in meeting our obligations, and we expect the provincial government will act within its authority.”

Roosen also emphasised Osisko’s ongoing commitment to engaging with the Xatśūll First Nation, stating that discussions would continue even after a permit decision is made. “Our commitment to engaging with Xatśūll First Nation will continue, including after the permit decision is made. We genuinely want to find a meaningful, sustainable, and realistic way to share the socio-economic benefits from this project.”

Throughout the EA process, Osisko responded to more than 1 700 comments and received a positive EA certificate. In the permitting phase, the company addressed and closed over 1 800 comments from various stakeholders, including Xatśūll, Lhtako Dené Nation, and Williams Lake First Nation. Osisko has made commitments through its permitting and management plans to continue engaging with all Indigenous nations and stakeholders involved.