As we are only one of three in the province scheduled to come on line soon, and exploration is down, at least, we may have a bit of a head start here:
VANCOUVER — British Columbia saw a 29-per-cent drop in spending on mineral exploration in the province last year, Premier Christy Clark reported Monday, underlining challenges the industry faces in a global mining slowdown.
The figures were revealed as Clark was opening the Association for Mineral Exploration B.C.’s annual Exploration Round Up conference casting somewhat of a shadow over the positive atmosphere the premier attempted to maintain.
B.C. has opened three new mines in the past several years with another in the wings to start operations, which had Clark characterizing mining as “a great comeback story (with) significant opportunity to create thousands of jobs by opening new mines and expanding existing ones.”
However, that is against the backdrop of 2014, which saw Walter Energy Inc. and Anglo American Plc indefinitely suspend operations at three northeast coal mines due to poor markets putting more than 700 people out of work and a sharp pull-back in new exploration.
The province estimates that mineral prospectors spent $338 million on exploration activity in 2014, down from $476 million in 2013, and half of the $680 million miners spent in 2012, the peak year of the last 20 years for prospecting.
Clark used the occasion to announce that the government will extend measures designed to boost the exploration sector.
One is extending for another year the flow-through tax credit on exploration spending, which grants tax breaks to investors who put money into mineral prospecting and exploration, at an estimated cost of $10 million.
The other was an extension of the new-mine allowance tax credit through to 2020, which allows mining companies to, in conjunction with other tax provisions, deduct 133 per cent of capital costs on new developments.
In a press conference following her speech, Clark acknowledged the setbacks of the northeast’s mine suspensions, but said she remained hopeful that anticipated new-mine openings will offset the downside.
Imperial Metals is in the process of opening its Red Chris mine in B.C.’s northwest, which will mean some 300 new jobs, and Clark referenced Alloy Corp.’s Kitsault molybdenum mine, which received its mine permit, and Seabridge Gold Inc.’s massive KSM project as positive signs.
Clark, along with Lt.-Gov. Judith Guichon and Energy and Mines Minister Bill Bennett officially opened the conference.