Taseko shares drop 20%

Taseko Mines shares dived Monday on the first trading day after a federal review panel said the Vancouver company's proposed open-pit gold and copper mine in B.C. would pose significant threats to the environment.

Taseko shares closed down 84 cents, or 20.2 per cent, at $3.32 on the Toronto Stock Exchange.

A study on the Prosperity development, 125 kilometres southwest of Williams Lake, concluded "the project would result in significant adverse environmental effects on fish and fish habitat, on navigation, on the current use of lands and resources for traditional purposes by First Nations." The panel also said the project could harm grizzly bears in the region. 

The report was submitted Friday to Environment Minister Jim Prentice, who will take the matter to the federal cabinet for a decision.

The $800-million development would have a 20-year lifespan and include an onsite mill, access road and 125-kilometre power transmission line.

Taseko has said it would generate hundreds of direct and indirect jobs in B.C.'s Cariboo-Chilcotin region. Last January, the B.C. government concluded that while there would be negative environmental effects, the mine was justified.