B.C.'s prospectors and junior explorers have been grappling with tough economic conditions in the second quarter of 2012, according to the Association for Mineral Exploration BC (AME BC).
In a statement, AME BC president and CEO Gavin Dirom said that "very challenging equity financing and bear market conditions" have hit the sector over the past three months.
He noted that equity capital raised on the Toronto Venture Exchange (TSX-V) through May was down 62% from the previous year's levels.
He also noted that copper prices have also fallen more than 9% over the past three months, assigning this to a drop in Chinese demand for the commodity and fears about Europe's sovereign debt crisis.
However Gavin said despite the tough year, the sector is optimistic that commodity prices may rise in the final months of the year.
He further contended that the province is well placed to cash in on any strengthening markets.
"Activity in the B.C. mineral exploration and development sector, while down compared with last year's record-breaking pace, continues to attract interest from intermediate and major international companies," Dirom said.
"As a province rich in metals and minerals, especially coal, copper and gold, B.C.'s fundamentals are strong and it is very well positioned to take full advantage of its geographic position on Canada's Pacific coast and access to strengthening markets."
For more about the struggles B.C.'s junior miners are facing, see this week's edition of Business in Vancouver, out tomorrow.
