A strong mining sector benefits everyone in B.C.

If we work together, we can seize this critical moment, Karina Brino, Gavin C. Dirom and Alec Morrison write.

Spring has arrived and a provincial election is just around the corner. Now is the time for British Columbians to think about how their next government will ensure the mineral exploration and mining industry can remain globally competitive and provide a stable, prosperous and sustainable future for every citizen of B.C.

With globally determined commodity prices improving, this is a critical time for the industry. As prices rebound, B.C. can capitalize on its opportunities and ensure that the industry remains competitive and attractive to investment. However, this will only happen if government, industry, First Nations and communities continue to work together.

The mineral exploration and mining industry is an essential part of the economic and social fabric of the province, and a healthy, thriving, responsible industry benefits all British Columbians. Products mined in B.C. play a critical role in contributing to Canada’s transition to a low-carbon economy, from the copper used in electric cars to the steelmaking coal required to build public-transit infrastructure and wind turbines. In 2015, the industry contributed more than $7.78 billion to the provincial economy, supporting 30,000 jobs in both rural and urban areas. These high-paying family supporting jobs include 8,726 direct jobs in mining and 6,000 through mineral exploration. Another 15,000 people are employed in trade occupations and science, technical, legal and financial professions that support communities across the province.

To continue being a major contributor to the socio-economic development of the province, a vibrant mineral-exploration and mining industry in B.C. depends on the ability to compete in a global market with other mining jurisdictions around the world. B.C. companies must both attract investment dollars and be operationally cost-competitive. Commodities explored for and mined locally such as copper and steelmaking coal are sold at prices determined by international markets. We are price-takers, not price-makers, and therefore effective tax structures are of utmost importance to ensure the industry remains competitive.

Sustained investment in exploration is the only path to successfully discovering and developing new minable deposits that are so vital to maintaining our quality of life in B.C. The government of B.C. must continue to work with industry to attract investment and maintain incentives like flow-through shares and tax credits that increase investment.

To remain an attractive jurisdiction for capital investment on a global stage, government must continue to work on improving access to land to enable temporary and low-impact exploration. The reality is that mineral and coal exploration and development activities take up a very small portion of land in B.C., in fact much less than one per cent of the province’s total land base. Yet 18 per cent of land in B.C. is protected and not open to exploration and development, and a further 33 per cent of the land, while technically open, is subject to restrictive conditions beyond the regular precautions and environmental safeguards.

The mineral exploration and mining industry is one the largest private-sector employers of First Nations in the province and many projects and operations are located close to First Nations communities. The industry is committed to safety, environmental stewardship and meaningful engagement with First Nations, communities and the public. At all stages of the mining cycle, project proponents and operators in B.C. participate in regulatory processes, including environmental assessment reviews, mine permitting, mine inspections, and reclamation and closure approvals.

Market conditions are right for B.C. to be a global leader in the mineral exploration and mining industry. There are clear steps the government can take to ensure the industry is competitive on a global scale while ensuring responsible exploration and development occurs for the benefit of all British Columbians.

With a contribution to the provincial economy of close to $8 billion per year helping to support social services like health care and education, having a strong mineral exploration and mining industry is in every British Columbian’s best interest.

Karina Brino is president and CEO of the Mining Association of B.C., Gavin C. Dirom is president and CEO of the Association for Mineral Exploration and Alec Morrison is president and CEO of the Mining Suppliers Association of B.C.