Redfern Resources Ltd. is being forced to lay off construction workers at its Tulsequah Chief project because of a hold-up with a federal permit, says the company's president.

Terry Chandler said Wednesday the Department of Fisheries and Oceans (DFO) has for several months had all the material it requires to review the application for a 200-metre causeway, but hasn't yet gotten around to issuing the authorization.

Three weeks ago, the DFO was informed layoffs would soon be necessary if the permit wasn't issued, Chandler told the Star from the company's head office in Vancouver.

"We have had a pretty good relationship with them, but they have been as slow as molasses," he said. "We should have had this permit in September."

Chandler said there are no outstanding issues or information voids holding up the authorization. Everything required for a full assessment of the application has been provided, he said.

As a result of no permit, he said, Redfern is looking at laying off between 20 and 30 of the 85 people working at the Tulsequah Chief site, located 100 kilometres south of Atlin, B.C., near the confluence of the Taku and Tulsequah rivers.

The area was once a thriving mining district, with initial exploration and production dating back to the early 1920s.

Redfern has been moving ahead with plans to revitalize the Tulsequah mine, which had a brief production life in the 1950s.

The company is proposing to barge mineral concentrate down the Taku River and over to Juneau for shipment to smelters overseas.

It is seeking authorization to build a causeway to connect two sections of road running from the Tulsequah Chief mine site to the barge landing.

"As soon as we have permission to do the work, we can do the work," Chandler said.

It's not financially feasible to have the 20 or 30 workers sit idle at the site, nor would it be their preference, he added.

While the layoffs are pending, the company announced Wednesday it has completed a financial arrangement which secures the remaining $200 million needed to complete construction.

Chandler said Redfern is shooting to be in production by the end of next year.

Also outstanding is the authorization for barging the concentrate year-round, though the process of obtaining the necessary permits is well underway, Chandler said.

Redfern has been advancing the Tulsequah Chief project since the early 1990s.

Its initial proposal to construct a 160-kilometre road from Atlin to the mine site created significant opposition from the Taku River Tlingit First Nation.

The decision to switch to air cushion, all-weather barges to haul the concentrate was made in 2006.

The company expects to employ about 200 people during production.

Chandler said if the company had not completed the initial financial arrangements in July 2007, he doubts it would be in a position today to secure the necessary funding, given the turbulent market conditions.

Junior mining companies, and companies which are not yet in production and do not have their own cash flow, are being hurt the most by the crash, and have had to take drastic measures to conserve money, Chandler said.

The DFO was contacted for a response to Chandler's suggestion that the slowness of its in-house process is responsible for the layoffs.

No response was received.