TORONTO (miningweekly.com) – Uranium explorer Strateco Resources on Monday announced that the Quebec Sustainable Development, Environment, Wildlife and Parks Minister Yves-François Blanchet had notified the company on Friday that he had decided to refuse the certificate of authorisation for the Matoush underground exploration phase, in Quebec’s Otish mountains.

Strateco said its legal counsel was examining the impact and reach of this decision on the legal proceedings currently under way.

The James Bay Cree Nation welcomed Blanchet's decision to refuse to issue a certificate of authorisation for Strateco's exploration project.

Blanchet's decision followed a notice issued on June 21, in which he advised that he intended to refuse the permit for the Matoush project, as there was not sufficient social acceptability for the project, particularly amongst the Crees.

"This is good news for the Cree people. We have been clear that uranium mining and uranium waste are not welcome in Eeyou Istchee," grand chief Dr Matthew Coon Come said.

He added that the Cree were pleased that the Quebec government had once again recognised that the social acceptability of proposed development projects in Eeyou Istchee was a critical part of the strong and successful nation-to-nation relationship between the Cree Nation and Quebec.

The company vowed to vigorously defend the interests of its shareholders, which had invested more than $123-million in the Matoush uranium project.

Strateco has been awaiting a decision from the Minister for more than two years, since August 2, 2011.

The firm said this period was characterised by 85 layoffs and substantial uncertainty surrounding the capital already injected into Quebec.

Blanchet in March placed a moratorium on uranium exploration and mining in Quebec, and ordered an impact study on the exploration and development of the mineral following ongoing legal proceedings aimed at forcing the provincial government to make a decision on the Matoush project, which is located east of James Bay on The James Bay Cree Nation’s Eeyou Istchee reserve.

Last year, after two years of public hearings, the James Bay Cree Nation enacted a permanent moratorium on uranium exploration, mining, milling and waste emplacement on their territory on the east shore of James Bay, known as Eeyou Istchee.

Despite this moratorium, federal regulators, including the Canadian Nuclear Safety Commission, allowed Strateco’s Matoush uranium project to proceed within this Cree territory. Nevertheless, before this project could proceed, provincial authorisation was also required, for which Strateco had already been waiting for two years.

The company in January filed a court order to force the Quebec government to make a decision on its exploration project.

In October 2012, The Canadian Nuclear Safety Commission granted an exploration licence to Strateco Resources, allowing the company to do advanced exploration for uranium at the site.

Strateco held that the Cree should not have the power to veto the project, and that it was up to the provincial government to make the final decision.