The recession pounded B.C.’s mining industry in 2009, yet pre-tax net earnings remained at historic highs.
Michael Cinnamond, leader of PricewaterhouseCooper’s (PwC) B.C. mining practice said, “The 2009 financial results for B.C.’s mining industry are very similar to those seen in 2007, which at the time was a record year itself."
PwC released a report this morning that showed the province’s total net earnings from mining in 2009 were $2.3 billion, which is a $900 million decrease from the year before.
Cinnamond said B.C. mines faced lower shipments and weak commodity prices across the board last year and total metal and coal shipments were down 21% to 21.3 million tonnes.
For example, metallurgical coal shipments dropped to 16.9 million tonnes in 2009 compared with 22.3 million tonnes in 2008, while copper shipments dropped 14% to 730,000 tonnes.
Revenue from zinc and molybdenum also plummeted in 2009, but were somewhat offset by a 34% increase in gold and 6% increase in silver revenue to $309 and $288 million respectively.
Overall, B.C.’s mining sector contributed $5.7 billion to the provincial economy in 2009, and employment and salary levels were on par with 2008.