Imperial Metals Corp T.III

Vancouver Sun: B.C. mining industry struggles to continue

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https://www.vancouversun.com/business/mining+industry+struggles+continue/9839837/story.html

VANCOUVER — B.C. mining industry leaders cited the “cyclical” nature of their business repeatedly on Wednesday while assessing the conditions that caused a 22-per-cent drop in earnings and a seven-per-cent decline in revenues last year.

A PwC industry report said falling coal and copper prices were the biggest factors in industry earnings dipping to $1.39 billion in 2013 from $1.78 billion the previous year, while revenues fell to $8.54 billion from $9.16 billion.

“While 2014 is already proving to be another difficult year, it’s a reality miners are used to in what’s traditionally a cyclical business,” said report co-author Mark Platt.

Association of Mineral Exploration British Columbia president Gavin Dirom said 2014 will be “a bit bumpy” for the industry, but he believes the worst is behind it.

“We’re looking forward to moving the industry back to more positive numbers going forward,” he said.

A rebound in falling commodity prices would help.

Coal and copper prices — which represent 70 per cent of total provincial mining revenues — dropped significantly last year.

Coal fell from an average price of $193 US a tonne in 2012 to $160 US a tonne last year, and it currently sits at about $120 US a tonne.

Copper fell from $3.61 US a pound in 2012 to $3.32 US a pound in 2013, and now fetches about $3.15 US a pound.

Mining Association of B.C. president Karina Brino said the outlook is positive for metal prices, noting Imperial Metals still plans to begin full production of its new Red Chris copper mine, 80 kilometres south of Dease Lake, this fall.

“It’s likely to be another tough year for coal prices in 2014, but in the next two or three quarters, we’re also expecting (an improvement) in that commodity,” she said.