Pierre Gratton was all smiles last week as B.C.’s mining industry reported near record revenue in 2010.
Gratton, enjoying one of his final press conferences as president and CEO of the Mining Association of BC (MABC), joined industry colleagues downtown to unveil “Seize the Day.”
The industry survey, which PwC has published every year since 1968, showed that gross mining revenue in B.C. reached $7.9 billion in 2010 compared with $7 billion in 2009.
The results are the latest indicator that the old economy is climbing back to its former glory on the back of soaring commodity prices.
There’s hardly a miner in Vancouver that isn’t reaping the reward of high metal and mineral prices, prompting industry leaders to dream up catch phrases to celebrate their enthusiasm.
PwC’s “Seize the day” is a clear message to government to take advantage of the boom times while they last.
“All the stars are aligning,” said PwC partner Michael Cinnamond, “and now it’s time for B.C.’s mining industry and the provincial and federal governments to seize those opportunities.”
Gavin Dirom, president and CEO of the Association for Mineral Exploration BC, has labelled the current situation a “modern-day gold rush.”
But Gratton’s catch phrase – the B.C. mining renaissance – is the one that’s caught on among industry leaders.
After three years as B.C.’s top miner, Gratton has learned that success is not only about what’s in the ground but also how the public views what’s pulled out of the ground.
“What it’s really shown me is how much more connected the industry is to the communities of B.C. than I ever thought,” Gratton said.
Gratton will be leaving Vancouver at the end of the month to become president and CEO of the Mining Association of Canada, where he’ll speak on behalf of the industry at a national level.
It’s a big step up, but after three years stick-handling complex environmental, permitting and First Nations issues, the 46-year-old believes he’s ready for it.
After all, the worst could already be behind him.
Three months after he took the reins at MABC, the U.S. housing market crashed and commodity prices were in a freefall.
“Everything went south,” Gratton recalled. “The hard part for me personally was … I had had a large staff and a shrinking budget and I had to downsize.”
Within months, however, the commodities market began to show signs of life as China’s appetite for resources heated up.
Gratton believes the sector’s ability to bounce back so quickly bodes well for the long term.
“It validated the belief that what we’re seeing from China and from India and from Brazil is real; it’s akin to what we saw post-World War Two. It’s a different type of growth.”
In the years since, Gratton has watched B.C.’s mining sector expand at near-unprecedented levels.
There are three major new mines under construction, the first of which will open some time next month. The industry has also welcomed hundreds of millions of dollars of foreign investment.Capital expenditures increased 120% to $1.3 billion in 2010 compared with the previous year.
But for all the good news, Gratton hasn’t forgotten about the province’s major challenges.
Near the top of that list is the dual environmental permitting process, which has caused significant controversy and headaches for the industry and its opponents.
It’s an issue Gratton will take to Ottawa.
“This is about having departments that are co-ordinated and that manage things well, and at the federal level that’s not the case; it’s been poorly managed.”
The association has also taken a lead on environmental issues, adopting the toward sustainable mining (TSM) initiative, which Gratton said would help the industry minimize its environmental impact.
First Nations issues have been top of mind as well.
Earlier this month, MABC committed $125,000 to assist in the documentation and renewal of endangered First Nations languages.
And in his final annual address to the Vancouver Board of Trade last week, Gratton called on Ottawa to recommit to the B.C. treaty process.
“First Nations treaties are one of the best ways society has of providing greater certainty on the land base,” he said.
Catch phrase or not, Cinnamond said Gratton has been instrumental in moving B.C.’s mining sector forward.
“He talks softly but he’s got a strong voice,” said Cinnamond. “He’s a diplomat as well … but he’s not afraid to make his point.”