Selwyn dismisses Yukon chief's mine concerns

A major joint venture that wants to develop a huge lead-zinc mine near the Yukon-Northwest Territories border says a Yukon First Nations chief's environmental criticism is premature.

Selwyn Chihong officials responded to remarks made Wednesday by Liard First Nation Chief Liard McMillan, who is demanding a halt to the proposed mine project at Howard's Pass, located about 220 kilometres northwest of Watson Lake, Yukon.

McMillan said his First Nation is concerned that zinc-laden mine tailings could get into local rivers and eventually into the Yukon River.

"I think it should not go ahead until these concerns are addressed. That much is certainly clear at this point, from the Liard First Nation's perspective," McMillan told CBC News on Wednesday.

McMillan said while his First Nation does not oppose mining development, it cannot support a development that has the potential to pollute the Yukon's waterways.

No tailings involved: Selwyn

But Selwyn Resources Ltd. CEO Harlan Meade said he does not know what McMillan is worried about.

"There is no tailings associated with the underground development, so it seems to be a misunderstanding of what we've actually applied for," Meade said Wednesday in Whitehorse.

"What we're looking for is simply the ability to release water from the underground, provided it meets water criteria," Meade added.

"If we presumably meet those discharge requirements, we're not going to have an effect on the environment."

Meade said any environmental concerns related to the Howard's Pass project will be addressed during the regulatory process, which he said will take place next year.

Vancouver-based Selwyn Resources, in partnership with the Chinese mining company Yunnan Chihong Zinc Germanium Co. Ltd., is spending $100 million over the next year to explore the Howard's Pass property, in the hopes of confirming its mineral claims are viable enough to support a mine.

Howard's Pass is touted as having the largest known lead-zinc deposit in the world, according to the company. About 90 per cent of the property is in Yukon, with the remaining area extending into the Northwest Territories.

Partnership celebrated

The two companies celebrated their new partnership witha gala dinner Wednesday night at the Yukon Transportation Museum in Whitehorse.

"Separated as we are, thousands of miles apart, we come together as if by predestination," said David Qi, chairman of the Selwyn Chihong board and an executive with the Chinese firm's parent company, Yunnan Metallurgical Group.

Yukon Premier Dennis Fentie, Economic Development Minister Jim Kenyon and other government and First Nation officials attended the dinner.

Meade said there is no need for Yukoners to be wary of the Canadian-Chinese corporate partnership.

"There's a lot of misunderstanding, a lot of fear about Chinese investment in the North, and this is one small step to sort of make people rethink that," Meade said.

"I don't think there's anything to be fearful here. I mean, their investment in Canada is an opportunity. It's not a negative."

Selwyn Chihong had invited the Liard First Nation to attend the dinner, but it declined.