November 21, 2024

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West High Yield (WHY.V) moves magnesium permit negotiation process forward

West High Yield Resources (WHY.V) has a lot at stake as they engage in their permit application for the Record Ridge industrial mineral mine, a magnesium deposit situated 10 kilometres southwest of Rossland, B.C.

Rossland is god’s country to be sure, and the locals are keeping a close eye on developments with West High Yield, to ensure that stays the case. Mines aren’t necessarily terrible for residents who live nearby – they provide jobs and boost the local economy, which is a big deal in the BC interior. But they also bring traffic and, if improperly managed, can be environmentally iffy.

So investors would be right to measure the potential for things to go awry in any mining permit consultation process.

That said, it appears West High Yield is going the extra yard to ensure Rossland locals, and the Osoyoos Indian Band in particular, are on board with their plans.

A key meeting occurred on June 27, where the provincial mining development review committee (MDRC) in Rossland unveiled the technical review process for the WHY project. Representatives from the government, technical experts, and groups representing first nations and indigenous peoples participated in the meeting. The meeting was overseen by British Columbia’s Ministry of Energy, Mines, and Low Carbon Innovation, and it marked the initiation of the MDRC’s technical review of WHY’s permit application process.

Frank Marasco, WHY’s CEO and many year supporter, would have been on tenterhooks; this is where many a mining project can skid off the road, leading to years of back and forth negotiations that, at times, can stall a company out completely.

In previous community meetings, locals expressed reasonable concern that the development might kick up a lot of dust, that truck traffic may be hard on local roads, and that the use of explosives may be rough on the local wildlife. The company doesn’t believe that its development will have these sort of negative outcomes but, rather than argue the point, shifted to a position beyond the middle ground, that would seek to reassure all parties that they were heard, considered, and would be properly worked with.

To be sure, this isn’t the way these things always go. Often mining companies will seek comfort in technical reports and that the ministry will ignore local protests, but to West High Yield’s credit, they’ve gone another route entirely; one that may cost more when they go into production, but that which will more likely GET them to production by working closely with the community.

WHY management used this meeting to unveil their proposed mitigation strategies to address community concerns, which include:

  • Replacing the use of explosives with mechanized equipment for ore extraction – which will, granted, slow production to an extent but produce a lot less dust;
  • Utilizing enclosed environments for crushing machinery to control dust and noise – see above;
  • Investigating the possibility of a trucking route along Highway 22 to Northport, Washington, instead of passing through Rossland, in collaboration with the British Columbia Ministry of Transportation and Infrastructure.

Barry Baim, the director and corporate secretary of West High Yield, said, “We are grateful to the community members who shared their thoughts at our open houses in May, and we are committed to working together to ensure this project is the best it can be. We are excited about the ongoing discussions that will highlight the project’s positive impact on the first nations, indigenous people, and the community.”

To be sure, that’a a nice thing to say, but also standard practice. How do we know West High Yield is maintaining its interactions with first nations groups and indigenous peoples residing in the project area. because that’s the real test. If the Osoyoos Indian Band supports the company’s commitment, that’s a really big deal.

Thankfully, they appear to. Clarence Louie, the chief of the Osoyoos Indian Band, stated, “We appreciate West High Yield’s cooperative approach, and we are eager to work with the company and the B.C. government to ensure that future decisions are sustainable and include the Osoyoos Band.”

Let’s not get carried away and assume that’s a literal go-ahead, but what it is, is progress.. a wait and see approach that encourages the company to do as it says it will.

And that, faithful readers, is about as good as you can get at this point in the process. Well done, all.

— Chris Parry

FULL DISCLOSURE: West High Yield is an Equity.Guru marketing client, and we’ve bought stock in the company.

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