B.C. Premier Christy Clark is promising to boost support for the province’s mining sector in the wake of steep declines in the private sector’s exploration spending.
The premier announced Monday (January 26) the government would increase the base budget for the Ministry of Energy and Mines by $6 million — contingent on approval from the legislature — to help establish a major mines permitting office.
The office would employ staff for more inspections and permit reviews, help co-ordinate major mine permits across different government agencies and improve turnaround times for permits.
Previously, the government used a contingency fund to pay for more geotechnical staff and improved turnaround times. The $6 million boost to the ministry’s budget would make the contingency funding permanent.
Clark said in a statement 10 new B.C. mines are expected to open “in the next few years” and the new funding would help support the upcoming projects.
The government also announced it would raise an additional $3 million annually from new permit fees. Those fees would not, however, be charged to exploration companies.
Exploration spending in the province reached $338 million in 2014, according to B.C. provincial geoscience statistics.
That’s a 34% decline from 2013 when exploration spending reached $476 million and the lowest it’s been since 2010 when it was at $322 million.
In 2012, exploration spending reached $680 million — up 38% from $463 million in 2011.
“We appreciate that permitting fees will not be applied to exploration activities because such activities do not generate revenue,” Gavin Dirom, CEO of the Association for Mineral Exploration British Columbia CEO, said in a statement.
