In a May 16th Press Release, PwC Canada (PricewaterhouseCoopers LLP, an Ontario limited liability partnership) announced the publication of their 51st annual British Columbia mining industry report. Based on sector performance, the report expresses optimism for the industry noting that political stability, world-class infrastructure, a highly skilled workforce and easy access to Asian markets all contributed to 2018’s success which was also met with cooperative market prices, particularly Copper (up 6% in 2018) and Coal (up 5%). All together, gross industry revenue hit a record high of $12.3 billion in 2018, up from $11.7 billion and $8.7 Billion in the previous two-years.
The 26-page report includes a perspective from Mining Association of British Columbia (MABC) President Michael Goehring. Replaying a common MABC message that “all BC communities are mining communities”, Goehring reminded readers of the industry’s importance to the province and especially to Vancouver. “Greater Vancouver is BC’s largest mining community,” he writes. “The city is home to hundreds of mining companies and their employees, as well as a vast array of suppliers” who supplied more than $ 460 Million worth of goods to the industry. Goehring’s segment also acknowledged headwinds that exist for the industry, including changes to the BC Environmental Assessment Act, the BC Carbon Tax, and the United Nations Declaration on the Rights of Indigenous People. A “clear, consistent and coordinated regulatory and fiscal framework”, he says, is required to ensure that BC continues to attract attention from both investors and from qualified professionals.
The report also gives special focus to the renewed interest in BC’s Golden Triangle. While much of this section focuses on Ascot Resources, the segment demonstrates how the investment in infrastructure and recent agreements with First Nations is paying off and generating interest in this area of northwest BC often touted to be home to the world’s most prolific mineral deposits. As a northerner, I found this section interesting as it includes quotes from District of Stewart Mayor Gina McKay and Collier Azak, CEO of the Nisga’a Lisims Government.
Overall, the report carries a message of renewed industry optimism. BC is positioned to a be a key supplier of low-carbon energy solutions and the industry has invested in technologies to improve monitoring, reduce power and fuel consumption and make mining safer for all stakeholders. Most importantly perhaps, is the concluding acknowledgement that mining companies “continue to develop their relationships with their key stakeholders, understanding and appreciating that social license to operate is a critical part of any successful operation.”
The 2018 PwC British Columbia mining industry report entitled “Building mines of tomorrow” is available for download at https://www.pwc.com/ca/en/industries/mining/canadian-mine/mining-industry-in-british-columbia-2018.html
