When it comes to mining, B.C. is open for business, according to Darrell Podowski, partner and chair of the national mining group at McMillan LLP.
“It’s full speed ahead,” Podowski said. “We have a very good regulatory system. We have good mining laws. We have some good tax incentives. And we have great geology.”
In an effort to communicate this positive message to a broader audience, Podowski recently co-authored the chapter on Canada in Minerals and Mining: A Practical Global Guide. In it, Podowski outlines the regulations and legal requirements for international investors looking to explore and develop mineral and metallurgical properties in Canada.
“When people come to a jurisdiction, they want to know what’s the environment here, what are some of the hurdles, what are some of the laws they need to know,” he said. “The book is a good roadmap for an initial investor here. Hopefully it will facilitate companies and investors to come to Canada and British Columbia to invest.”
While Podowski’s purview is the whole of Canada, one of the key takeaways of the chapter is the pro-mining environment in British Columbia.
“The government has been very supportive of mining and very entrepreneurial in that respect,” Podowski said.
Podowski pointed to a number of regulatory developments that are positive to B.C.’s mining sector, including the introduction of a provincial exploration tax credit (which “stacks” with the federal credit), a continuing effort to streamline permitting and environmental approvals, and the BC Jobs Plan, which commits to having eight new mines and nine upgrades and expansions to existing mines completed and operational by 2015.
“In the next three to four years, we’re going to have a number of mines come online where over the last 10 years, we had none,” Podowski said. “I think that’s going to be very positive from the viewpoint of investors looking at B.C., and seeing that we do have an environment that’s pro-mining and that does result in mines being built and opening and producing.”
When it comes to exploration, Podowski believes Vancouver is the place to be in Canada. “[Vancouver] is quite a centre for junior mining companies and [professionals] who service them: lawyers and accountants and engineers,” he said.
That expertise, along with the province’s “junior-friendly” securities laws (a legacy of the former Vancouver Stock Exchange) has made the province a hub for mining sector financing. “[B.C.] has got a very active junior market and there’s lots of liquidity for mining companies here,” Podowski said. “It’s a friendly jurisdiction to raise money for mining exploration companies and mining companies. If you’re based in B.C., especially if you’re exploring in B.C., it’s much easier to raise money than it would be in another province such as Alberta or Saskatchewan.”
One issue Podowski identifies as a challenge to would-be miners is working with First Nations. While the topic is covered briefly in the chapter, Podowski acknowledged he would have liked to have discussed it in greater detail.
“Most of [the] areas where there’s good mining potential, you’re dealing with First Nations – one or two; sometimes three – that you have to consult with in order to get your permits,” Podowski said. “It’s really a bit of a minefield.”
While international investors are often familiar with working with aboriginal and native groups, the depth of the legal responsibilities toward First Nations makes B.C. unique. •
