Coal firm reaches deal with B.C. First Nation

A northeastern B.C. First Nation has given its stamp of approval for a coal exploration project near Chetwynd.

Derek Orr, the chief of the McLeod Lake Indian band, and First Coal Corp. of Vancouver have signed an agreement that would allow the mining company to explore for coal in their traditional territory.

"It's the first step in a long process," Orr said, "so as we go forward, we hope to develop a strong relationship and make it a win-win situation for everybody."

Orr says if the project goes ahead, it could mean a hundred jobs locally, but hurdles remain.

"We want to make sure the water and the environment is taken care of," Orr said. "There's also a concern about caribou."

Doug Smith, the president and CEO of First Coal, says his company will use an environmentally friendly extraction process, but an environmental assessment still must be done.

As well, he said, the company is still consulting with three other local First Nations about the exploration deal.

The area to be developed is adjacent to rail lines providing ready access to Prince Rupert, a deep water port, according to a First Coal prospectus.

If all goes well, Smith said, the mine could be up and running by August.