Redfern suspends construction at Tulsequah mine

Vancouver-based Redfern Resources has halted construction indefinitely on its controversial Tulsequah Chief mining project in northwestern B.C.

Work on the zinc-copper-lead-silver-gold project 160 kilometres south of Atlin, in the salmon-rich Taku River watershed, was suspended last Thursday with no commitment from the company as to when or if work will resume.

Company president Terry Chandler told CBC News on Tuesday the planned three-week holiday shutdown has been extended until the firm has more financial certainty.

"I'm sorry that there's a need for us to extend this temporary shutdown, but I believe that all the people on the job will eventually have an opportunity to get back to work," he said.

Financing for the project depends largely on the company getting access to $91 million it has tied up in the asset-backed commercial paper market, Chandler said.

Although work at the mine site has been halted, the company plans to continue with construction of a special hover barge to transport goods along the river that flows into Alaska.

However, Alaskan regulators have put the project's permitting process on hold until it gets more information on the impact the barges could have on the river and its salmon habitat.