TSXV:BKM - Post Discussion
Post by
$500,000Salmon on Mar 20, 2021 3:35pm
LBN to receive $200 million or more in mineral tax???
If any LBN read this post, please share it with your nation members. You need to know the truth of how much mineral tax your people may receive if the mine goes ahead.
Mineral tax is 13% of net profit. FNs are to receive approx 1/3 of mineral tax revenues is my understanding.
The Morrison mine at today's ore prices should generate approx $9 BILLION in revenue and the cost in 2012 from what I can tell was over $3 Billion. With inflation, that may be $4 BILLION now.
$9 Billion - $4 Billion = $5 BILLION Net
$5 Billion net profit x 13% tax = $650 Million Mineral tax
1/3 of $650 Million is more than $200 Million for LBN
In the 2012 report, BKM were very conservative and estimated $208? million total tax. Depending on negotiations with the BC Gov, this would have netted LBN approx. $70 Million.
At the time BKM were very conservative and used a:
gold price of $658
copper price of $2.75
Canadian dollar of $.87 to the US dollar.
I understand that there are approx 2600 LBN with the majority (2207) living in Woyenne (see below).
The Lake Babine website lists 15 people per home!
2207 people divided by 147 homes = 15 people/home.
Any more than 6 or 7 people per home will mean a line up for the bathrooms in the morning!
If this is anywhere near the reality, then LBN need more housing.
If a home costs $200,000 to build (excluding land cost) then $200 Million would buy 1000 new homes! LBN have lots of land and could get the lumber at a fraction of the cost.
Of course LBN do not need 1000 new homes and so there would be lots and lots of money left over. Even 200 new homes would have a major impact on the LBN quality of life.
Again please share this info with LBN or the BC Gov, as meaningful negotiations can only take place, when all parties know the real numbers. -------------------------------------------------------------------
https://www.lakebabine.com/communities/ Woyenne (I.R. # 27) is Lake Babine’s largest community which is located within the municipal boundaries of the Village of Burns Lake. The reserve area is 60 hectares (140 acres) in size, with a growing population of more than 2,207 residing in 147 homes. Lake Babine central administration office also located on the Woyenne reserve.
======================= Net revenue tax for coal and other mines
You pay 13% tax on your net revenue once you’ve recovered the capital invested in your mine and your Cumulative Expenditure Account (CEA) doesn’t have a balance. You pay this tax on the profit you earn in excess of the capital invested in your mine.
https://www2.gov.bc.ca/gov/content/taxes/natural-resource-taxes/mining/mineral-tax/coal-other-mines/net-revenue
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