Vancouver is a centre of excellence for the mineral exploration and development industry.
Since 1912, the Association for Mineral Exploration British Columbia (AME BC) has promoted a healthy environment and business climate for the industry. We have more than 4,000 members from more than 30 countries, and the majority of our membership is based in British Columbia.
Although most of the 850 mineral exploration and mining companies have projects outside B.C., there is much to celebrate for those who are exploring for minerals and developing the mines of the future in their backyard.
There truly is a modern “gold” rush underway in our province, led by copper, gold and steel-making coal developments.
Unquestionably, it’s the mineral exploration and development sectors, buoyed by record commodity prices, leading the economic recovery. This past year we saw a doubling in exploration expenditures up from $154 million in 2009 to $322 million in 2010, as well as having over $1 billion spent in construction and development of new mines or expansions.
Most recently, the Northwest Transmission Line received a provincial environment certificate, and the project is in the final phases of acquiring necessary provincial licences, leases and other approvals.
Last year, the provincial government identified 25 major exploration projects and proposed mine developments in the corridor, and a 2008 study identified $15 billion in investment and 10,700 potential jobs resulting from the power line.
Such investment and job creation strongly supports regional economic development as well as providing tax revenue to fund health and education services in B.C.
The province is blessed with rich geology, and through a combination of necessity, innovation, hard work and collaboration, has world-leading environmental, social and safety standards.
The year 2011 presents an amazing opportunity to build on our strengths, capitalize on our opportunities and address the challenges that remain for our industry.
First, to ensure everyone benefits from mineral exploration and mining, a dedicated government effort is necessary to reform the Canadian environmental assessment (EA) process and permitting.
For years now, governments have been promising to untangle the daunting maze of regulations that complicates project approvals and to balance the interests of mineral explorers and developers, communities, non-government organizations and First Nations.
This is not a partisan issue, either at the provincial or federal level. Rather it is an urgent matter for all of us to consider if we hope to compete internationally, attract investment and build a sustainable economy.
Along with other Canadian industry associations, AME BC is calling for a single, timely and effective EA process that provides increased certainty for everyone.
Proponents should not need to navigate separate, typically unco-ordinated, inefficient and redundant federal and provincial assessments.
There are 25 potential mine projects in the EA process in B.C., representing an economic and social opportunity equal to $10 billion in investment and 68,000 jobs.
Fortunately, British Columbia remains well-positioned to review, approve and build many of these new mines, reflecting the province’s potential for mineral discoveries and proximity to fast-growing Asian economies.
On a provincial level, we are cautiously optimistic that in 2011, we will also see improvements in the efficiency of permits for exploration projects.
Second, more of B.C.’s mineral lands must be protected for exploration and potential mineral development.
AME BC supports a “two-zone” land access and use model so mineral explorers have certainty about where they can successfully undertake prospecting and geoscience in support of responsible mineral development.
While explorers require large areas to search for elusive new deposits, actual mining in B.C. has used less than 1% of the provincial land base over the last 150 years and generated gross revenue in excess of $600 billion.
Total payments to government by the B.C. mineral industry are projected to be nearly $500 million for the 2011-12 fiscal year.
Third, investment in public geoscience is critical.
Funding of Geoscience BC, a non-governmental partnership that collaborates with industry, academic institutions and government, for instance, has extended the mine life of Imperial Metals’ Huckleberry mine as well as assisted numerous companies to advance their projects.
Since 2005, millions of exploration dollars and hectares staked can be directly attributed to the activities of Geoscience BC.
Furthermore, the B.C. Geological Survey has a long track record of excellence in surveying, maintaining a public geoscience library and producing maps that attract prospectors and new investment.
Overall, we remain very optimistic that we can resolve these immediate challenges, and we have discussed the challenges and opportunities facing our sector with premier designate Christy Clark.
In particular, Clark has noted the importance of resource industries to our province’s economy and job creation, and recognizes the value of investment in resource-sector permitting as well as research and development, including geoscience.
The year 2011 will show a continuation of the modern “gold rush,” an exciting time in our industry where companies will make investments in exploration projects that will benefit communities in all regions of the province, and lead to the mines of the future.
Gavin Dirom is president and CEO of AME BC. Since 1912, AME BC has promoted the interests of B.C.’s prospectors and explorers. The association’s annual Roundup conference attracts thousands of industry experts to Vancouver every year.