MINING PLAN (2005 – Revised 2006)

BC’s mining industry is an important contributor to our economy, yet it is not living up to its potential. In recognition of this fact the provincial government recently released its “BC Mining Plan” (The Plan) to provide direction in the continued development of this important industry.

The Plan focuses on four “Cornerstone” strategies: Communities and Aboriginal groups, Protecting workers and the Environment, Global Competitiveness, and Access to Land. It is a good first step. More will have to be done to ensure the industry reaches its full potential.

Global markets for metals and minerals are cyclical, and are currently in an upswing. To ensure that British Columbians reap the benefits of market opportunities the province should now focus first on implementing The Plan, and secondly on addressing other outstanding issues and impediments. Mineral exploration and development has witnessed a renewal of interest in British Columbia given the Province’s natural geological formations and very high base metals prices that are being driven, in large part, by the strength of the Chinese economy. Several prospective mines are located in the Northwestern part of the Province where integrated electric infrastructure does not exist. From a Provincial economic perspective, the value of such incremental mining activity to the Province will be billions of dollars in terms of direct capital investment and related economic multiplier effects. Given the potential economic impact to the Province, The Chamber supports the Province financially contributing to the construction of a high voltage electric transmission line from Meziadin Junction to Iskut and potentially to Dease Lake which would provide integrated, and economic, electric service to these parts of the Province. The Chamber applauds the Province’s budget allocation of $500,000 as a good first step in moving forward the need to provide integrated electric services to the potential mining projects in the Northwest part of the Province.

The Chamber would also note the issue of historic liabilities associated with prospectors and/or individuals acquiring Crown lands for mining activities. The Province needs to continually communicate very clearly to these parties to ensure a complete understanding of the potential risks and costs, and allocation thereof, of historic liabilities associated with Crown lands.

Explorationist’s Liability on Abandoned Mine Sites
Exploration companies and prospectors recognize their responsibility to conduct their activities in a safe and responsible manner. They accept their obligations and responsibilities regarding potential hazards to the public or environmental damage that they create or worsen. However, under current policy and legislation, individuals or companies involved in prospecting or mineral exploration assume all responsibility for preexisting conditions created by previous exploration or mining activity.

A truism in the mining industry is that one of the best places to look for new mines is right next to old ones. But the early exploration, development and mining activities were conducted according to different standards and practices (established by governments of the day), which may have left an environmental legacy which, under today’s standards, is no longer acceptable and may be too expensive to remedy, or hazards that are unmarked by either those early explorationists or the government.

It is unfair and unrealistic to require today’s explorationists to assume responsibility for the results of the activities of others. It represents an unnecessary business expense and indeed a threat to their livelihoods, and is a significant disincentive to property acquisition and exploration. This is a serious impediment to the identification and development of BC’s mineral resources. Many potentially valuable sites are not being investigated, let alone developed, and British Columbians are being denied the social and economic benefits of their mineral heritage.

Other provinces limit explorationist’s liability for pre-existing environmental problems to responsibility for environmental contamination they cause or worsen. Similar adjustments to BC’s environmental regulations would remove a barrier to economic growth in the mining sector.

BC’s government has said that it would be unfair to grant the tenure holder the assets and leave society with the liabilities. Such a policy fails to recognize that government realizes some 80% of the assets that come out of the ground. It seems unfair to hold an individual solely responsible for a liability when so much of the corresponding asset and benefit goes to government. Furthermore, free miners will rarely stake such land so long as such policies exist. Consequently, this situation acts as a significant impediment to mineral exploration in BC and ensures our full mineral potential will remain unrealized.

THE CHAMBER RECOMMENDS

That the Provincial Government;

1. work cooperatively with all provincial agencies to implement the Mining Plan;

2. work to enhance aboriginal groups understanding of the industry, and their capacity to participate in the industry;

3. work with the mineral industry to develop “user friendly” Best Management Practices;

4. continue to work towards better harmonization of Department of Fisheries and Oceans and provincial fish and fish habitat management activities;

5. continually and clearly communicate to prospectors and individuals the risk and cost allocation issues pertaining to historic liabilities associated with Crown lands for future mining activities;

6. introduce legislation to relieve explorationists who acquire mineral tenure from the Crown for the purposes of exploration from any responsibility for pre-existing hazards and that clarifies that explorationists are no longer responsible for environmental damage they did not cause or worsen;

7. develop faster, more stream-lined approval procedures for mineral projects, coordinated by the Ministry of Energy, Mines and Petroleum Resources, including an on-line permitting process and a move toward “one-stop shopping”;

8. pursue strategic investments in transportation and energy supply infrastructure in un-serviced areas (such as northwestern BC);

9. continue to actively implement the Two-Zone land use system for mining; and

10. educate the public regarding the enormous benefits of the mining industry and its miniscule “footprint”