The economy recovery in B.C. last year was boosted by near-record mineral exploration in the province.
According to Randy Hawes, B.C.’s minister of state for mining, exploration spending in B.C. more than doubled last year to $322 million, from $154 million in 2009.
The amount of exploration spending last year was the third highest in the province’s history, second only to the $367 million spent in 2008, and $416 million spent in 2007.
“This is an extraordinary turnaround and is indicative of a reinvigorated and optimistic mining industry,” Hawes said. “It also underlies the importance the mineral industry is playing in the province’s economic recovery.
The investment potential of the mining sector in B.C. has not been lost to investors. Copper Mountain Mining Corp. (TSX:CUM), which is developing its Copper Mountain project near Princeton, announced last week it was planning to raise as much as $40 million in a bought deal offering of shares.
Just before the new year, Vancouver’s Avanti Mining Inc. (TSX-V:AVT) raised $11 million in a private placement with SeAH Holdings Corp., the largest specialty steel producer in Korea.
Despite the many strengths of B.C.’s mining sector, Hawes said the government remained committed to simplifying the two-tiered environment assessment process that involves separate assessments by provincial and federal government agencies. The two-step process has delayed the development of Taseko Mines’ $800 million Prosperity project when the federal Department of the Environment did not grant approval for the project last November. (See “Chasing Prosperity” – Issue 1101; November 30 - December 6, 2010.)
“With metal and coal prices rebounding so spectacularly, it is vital, for both the good of the province and the mining industry that we focus on moving towards a ‘one project, one process’ approval system.”