Policy & Positions Manual

Policy Priority Area - A Vibrant Resource Sector

Ministry Service Plan - Addressing the Needs of Industry (2009)   

British Columbians expect the province, through the Ministry of Energy, Mines and Petroleum Resources (MEMPR), to manage BC’s mineral resources for the optimum benefit of all British Columbians. However, that mandate is not reflected in the Ministry’s Service Plan.

The focus of the Ministry appears to be on managing the sector, rather than the resource. The Chamber is concerned that this seeming contradiction presents significant challenges to both industry and potential investors.

The Ministry’s Purpose Statement (as defined in the 2000/10 – 20111/12 Service Plan) reads:
“The Ministry of Energy, Mines, and Petroleum Resources manages the responsible development of British Columbia’s energy, mining and petroleum resource sectors. Through the promotion of teamwork and positive working relationships with our clients we facilitate a climate for thriving, safe, environmentally responsible and competitive energy, mining, and petroleum resource sectors. It is through these initiatives that the Ministry will continue to contribute to the economic growth and development of communities throughout British Columbia.”

In practice this means regulating the impacts mining sector activities have on other sectors, interests and on the environment.  It defines what can and can’t be done, when and how.

There is little to no emphasis in the Ministry’s stated Purpose/mandate on actually identifying the mineral resource, and even less on protecting that resource (which belongs to all the people of the province) from competing interests, or keeping it available for production, so that British Columbians might benefit from their mineral resource birthright. There is likewise no discussion on how it should be developed and /or managed to benefit British Columbians, other than how to limit environmental impacts.  No targets or objectives for identifying resources, or ensuring actual mineral production from the resource occurs.

In sharp contrast there is reference in the Purpose Statement to regulatory policy ensuring, “the orderly and timely extraction of British Columbia’s oil and gas resources.”

There is insufficient emphasis on ensuring that exploration actually happens, that mines actually get built and that British Columbians actually benefit from their resource; most of the Ministry’s activities are simply regulatory and limiting in nature.

The Service Plan states, “The Ministry will maintain effective and efficient regulation of mines and mineral exploration sites aimed at health, safety and environmental best practices.” Another objective is, “Improving the effectiveness and timeliness of multi-agency federal and provincial approvals.”  However, there is no objective or goal specifically aimed at increasing, or even replacing exhausting mines, the number of mines or exploration activity, and nothing measurable towards that end.

Instead GOAL 1, OBJECTIVE 1.1 of the Plan merely states that, “Increased investment, revenue generation and job creation in energy, mineral and petroleum resource development for the long term benefit of all British Columbians.”  This Objective is then quickly qualified with the observation that demand can be cyclical, affecting levels of investment.  This is followed by a forecast that Annual Investment in Mineral exploration and Mines will decline from an expected $0.720 billion in 2008/09 to $0.580 billion in 2011/12, a 20% reduction.

The Chamber believes that this represents a flaw in the Ministry’s mandate. While managing the activities of miners and their impacts on other people, sectors and interests, and the environment is a key responsibility of the Ministry, the Chamber does not believe this represents any requirement for the Ministry to manage the mineral resource for the optimum benefit of all British Columbians. Mines are becoming exhausted, too few are opening, and there is no evidence in the Service Plan that steps are being taken to address the forecast decline in investment in the sector.

Despite a definitive Purpose Statement that the MEMPR will, “In developing its policies, legislation and guidelines the Ministry consults with its clients in … industries,” the years 2007 – 2009 have been remarkable for the number of conflicts between the mining industry and the provincial government that have arisen precisely because there has been a failure of the Ministry to consult the mineral industry on its initiatives.  Forest Roads, Law and Equity Act, Surface Owner Notification, Uranium, and proposed First Nations Reconciliation Act are but a few examples. Clearly, that consultation has not been occurring (though the appointment of the Minister’s Council on Mineral Exploration and Mining by Minister Hogg is a welcome step forward).

THE CHAMBER RECOMMENDS

That the Provincial Government develop a clearer direction in its mandate and purpose regarding the mineral resource with measurable goals of resource delineation, mineral production and mine openings in the Ministries Service Plan.