Denied: Ottawa Rejects Taseko's New Prosperity Mine

Denied: Ottawa Rejects Taseko's New Prosperity MineThe results are in, and it doesn't look good for Taseko Mines' (TSX:TKO), New Prosperity gold-copper mine in British Columbia. Canada's federal government has once again rejected the development of New Prosperity on environmental grounds.

Federal Environmental Minister Leona Aglukkaq broke the news on Wednesday, saying that the mine is likely to result in "significant adverse environmental effects that cannot be mitigated," and adding that the government ruled that those effects would not be justified.

Ottawa's latest ruling marks the second rejection for the company, which resubmitted its proposal for the $1.5-billion mine last fall.

The development of the New Prosperity mine saw strong support from the BC government, including BC Mines Minister Bill Bennett, who commented on Wednesday that the news is disappointing.

"This is a wonderful opportunity for the region, for the province, with literally hundreds of jobs at stake," Bennett noted, though he said he accepts and understands the federal government's ruling; however, he still disagrees with the panel's conclusion that the mine would have adverse environmental effects, The Globe and Mail reported.

Naysayers of the mine, on the other hand, are celebrating the mine's second rejection.

The Tsilhqot'in Nation hopes that the latest ruling will now be "the end of a costly, pointless battle that has dragged on since at least 1995, when Taseko Mines Ltd. was first told by the federal Department of Fisheries and Oceans not to waste any further time or money pursuing this unacceptable project."

Chief Joe Alphonse, tribal chair for the Tsilhqot'in National Government said, "[w]e are celebrating this decision to reject once again this terrible project, which threatened our pristine waters, fish and Aboriginal rights."