Uncertainty over unresolved Aboriginal land claims and government land-use policies is making British Columbia an unattractive target for mining investment, according to a Fraser Institute study released October 3.
The study, British Columbia’s Mining Policy Performance, concluded that this uncertainty makes many investors view the province’s mining sector as too risky.
“Miners must have confidence in the stability, predictability, and transparency of the policy environment in which they operate,” said Kenneth P. Green, senior director of the Fraser Institute’s Centre for Natural Resources.
“If B.C.’s government wants to attract mining investment to the province, it should push ahead to settle land and resource ownership disputes in a timely manner.”
The report states that investment in the mining sector is inherently risky with only one out of 5,000 projects maturing into a mine, and the lack of certainty regarding land claims issues compounds the significant risks.
Green said all levels of government need to resolve Aboriginal land claims and the consultation process to find a way to improve the situation.
“The federal government can work to clarify the duty of mining companies to consult with aboriginal groups, and find ways to improve the consultation process,” said Green.
“Determining which practices have had the most success, and encouraging wider adoption of those practices, might be a helpful step.”
Alana Wilson, Fraser Institute senior economist and lead author of the study, said the study results reflect abrupt policy changes, including the provincial government’s retroactive ban on mining in Flathead Valley in 2010.
“While B.C. is no longer viewed as hostile to mining, sustained efforts are needed in resolving disputed land claims, providing finality on the two-zone land system, and building investor confidence in being able to develop deposits in a predictable and timely manner,” said Wilson.
