British Columbia Greenlights Major Mining Transformation in Stikine Region
The British Columbia government has issued a significant environmental assessment certificate that will allow an inactive underground gold and silver mine in the province's Stikine Region to be transformed into a large-scale open-pit mining operation. This decision represents a major development in B.C.'s resource sector and comes at a time when gold prices have experienced dramatic increases, creating favorable economic conditions for such projects.
Unprecedented Indigenous Collaboration and Regulatory Efficiency
On Monday, the Ministry of Mining and Critical Minerals, Skeena Resources Ltd., and the Tahltan Nation jointly announced that the reopening of the Eskay Creek Mine will proceed under 38 specific conditions. These conditions include granting the Tahltan Nation a substantial role in monitoring compliance throughout the entire lifespan of the mining project, marking a significant step forward in Indigenous partnership and environmental oversight.
Minister of Mining and Critical Minerals Jagrup Brar emphasized that this environmental assessment process was the first to be guided by a formal consent agreement signed with the Tahltan Nation. "The Environmental Assessment Office conducted the assessment on behalf of both the provincial and federal governments," Brar explained. "One assessment carried out by the EAO is used for decisions by both levels of government, eliminating the need for two assessments for a single project."
Historical Context and Economic Significance
The Eskay Creek Mine, situated within what's known as B.C.'s "golden triangle," has a substantial mining history. Originally operated by Barrick Mining Corporation from 1994 to 2008, the underground facility extracted approximately 3.3 million ounces of gold and 160 million ounces of silver during its operational period. Skeena Resources acquired the mine in 2020, setting the stage for its proposed revitalization.
This redevelopment project was among 18 resource initiatives that B.C. Premier David Eby pledged to fast-track in February 2025 as part of an economic stimulus strategy responding to increased U.S. tariff policies. The provincial government's streamlined approach aims to boost economic activity while maintaining rigorous environmental standards.
Projected Economic Impact and Market Conditions
If the project receives all necessary provincial permits and federal approvals, the open-pit mine is projected to operate for approximately 12 years. During the first five years alone, operators expect to extract around 450,000 ounces of gold. The development would generate substantial employment opportunities, creating approximately 1,000 jobs during the construction phase and 770 positions during ongoing operations.
The timing of this approval coincides with remarkable market conditions for precious metals. The value of gold has more than doubled over the past two years, currently trading at more than US$5,000 per ounce. This price surge has significantly increased the economic viability of mining projects like Eskay Creek. Reflecting this positive market sentiment, shares in Skeena Resources Ltd. have risen dramatically from $14.21 per share on January 24, 2025, to $44.03 per share on January 26, 2026.
Regulatory Framework and Future Requirements
Minister Brar highlighted the collaborative nature of the assessment process, noting that "the EAO's assessment featured unprecedented collaboration with provincial permitting agencies, federal regulators and the Tahltan Nation to streamline the reviews, share expertise and determine the best-placed regulator to oversee various conditions." This coordinated approach has improved regulatory efficiency, reduced duplication of efforts, and increased clarity for all parties involved.
While the environmental assessment certificate represents a crucial milestone, the project still requires additional provincial permits and federal approvals before operations can commence. The government's streamlined assessment process, however, has created a more efficient pathway toward these final authorizations.
The Eskay Creek Mine approval demonstrates British Columbia's evolving approach to resource development, balancing economic opportunities with environmental stewardship and meaningful Indigenous partnership. As gold prices continue to reach historic highs, this project represents both a significant economic opportunity for the region and a test case for collaborative resource management in Canada's westernmost province.
