Policy & Positions Manual

Policy Priority Area - A Vibrant Resource Sector

Providing a Platform for the Expansion of the Mining Industry in BC (2010)

BC’s mining industry is an important contributor to our economy, yet we are again losing ground with respect to BC’s share of exploration investment. Billions of dollars are raised annually by BC based mineral exploration companies, yet exploration expenditures in BC are again declining disproportionately when compared to other Canadian and International jurisdictions. In 2007 a high of 417 million was spent on exploration in British Columbia, but with spending down to $154 million in 2009 BC’s share of national mineral exploration expenditures has fallen from a high of 18% to only 10.5%.  We are losing market share because of serious concerns with process certainty related to permits, land use planning (Flathead etc), and Aboriginal relations which are significantly increasing investor perceptions of risk for investing in British Columbia.

This negative perception is confirmed by the 2010 Fraser Institute survey in which British Columbia has dropped 14 places from 24th in 2009 to being ranked 38th as the world’s most attractive jurisdiction for mineral exploration and development.

Recent land use decisions such as the Flathead ‘no-mining’ ban, and development of other land use designations such as Wildlife Habitat areas and Ungulate Winter Ranges with little to no consultation with the mineral sector is creating considerable uncertainty, and undermining the credibility of the government’s commitment to certainty and to the legislated ‘Two-Zone’ model for mining. 

A recent example is company that has spent millions of dollars exploring and planning a mine only to find out that the Government has implemented Ungulate Winter Ranges and Wildlife Habitat Areas. These areas have been long identified as critical to the potential mining area in question, and include half the proposed tailings pond, calling into question the viability of the proposed mine, which has appeared on government maps for some time.

No Registration Reserves, which prohibit acquiring mineral tenure in designated areas, were used to require a decision by Minister of Energy, Mines and Petroleum Resources; more recently they are being driven by front-line agencies like Ministry of Environment, with a final decision made by the Chief Gold Commissioner, creating even more uncertainty for industry.

The process under which Government Action Regulations (GAR orders) are issued under the Forest and Range Practices Act is fundamentally flawed because it ignores both the energy and mining sectors until the late stages. Sections 2 and 3 of the regulation provide for limitations of action, consultation, and review, and specifically ensure that wildlife protection is balanced with other values. For Example Section 2(1)(b) states the Minister must be satisfied that “the order would not unduly reduce the supply of timber form British Columbia’s forests.”  Unfortunately no such consideration is given to other economic land use values such as mineral exploration and development.

Given the small portion of land used for exploration and mining, and given that this minimal land use provides the largest return on investment to the people of British Columbia, the Chamber feels that mineral potential and mine development should be added as key factors to any GAR order being considered by the Minister.


THE CHAMBER RECOMMENDS

That the Provincial Government:

  1. continue to work to enhance the understanding and capacity of Aboriginal Peoples to participate in industry;

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

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

  4. develop faster, more stream-lined approval procedures for mineral exploration projects, coordinated by the Ministry of Energy, Mines and Petroleum Resources;

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

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

  7. better coordinate activities of MOE with MEMPR and the mineral sector  to ensure there is active and early consultation with the mineral sector when actions and government Action Orders which may affect it are being considered;

  8. add mineral potential and mine development as key factors for any GAR order being considered by the Minister; and

  9. return the authority for No Registration Reserve decision-making to Minister of Energy, Mines and Petroleum Resources.