30 Billion Doesn’t Seem Like Much When You Say It Fast
Thursday, May 24, 2012 @ 3:47 AM
While it will take 10 years to come to fruition, the Mining Association of Canada and BC are very bullish about the future of the industry in BC.
Karina Brino, President of the Mining Association of BC, quoting from studies done by the Federal Association, says the figure of "for sure" mines either in the permitting stage or under construction in the northern half of the province totals 30 billion dollars. The mines in question include, Table Mountain, Turnagain, Red Chris, Schaft Creek, Galore Creek, Mount Milligan, Kitsault and Berg.
In addition, exploration is underway at Tulsequah Chief, Foremore, Davidson Moly, and Spanish Mountain. There is also mention of exploration in the newly discovered Green Gold Property near Prince George.
Many of these new mines will be located along highway 37 north which will result in 6,000 workers being required to fill the jobs and Terrace, which has been in the doldrums for many years, will benefit from these openings.
The reopening of the Kitsault mine alone will mean 700 jobs for a community that had been mothballed several years ago.
So what’s in it for Prince George? She cautioned, this city will in all likelihood be the terminus for the required infrastructure and supplying those goods and services will sit well in this area.
30 Billion doesn’t seem like much when you say it fast, but if you add all of the other projects or works that are set to get underway , Prince George, and as a matter of fact the entire north, is about to get a bump in our economy.
I’m Meisner and that’s one man’s’ opinion.
Comments
From one cyclical industry (forestry) to another even MORE cyclical industry (mining). Am I the only one that actually sees this as an increased risk for Northern BC? The area needs stability, not an economy that will boom and bust based on what happens with product demand across the world, financial markets on Wall Street or currency fluctuations that we can’t control.
The jobs are definitely needed, but once again, where is the plan to move away from the same things that have resulted in stagnant growth for Northern BC since, oh I don’t know, since Northern BC was a concept?
With NOTHING else on the horizon, this looks more to me like a stopgap solution and that’s assuming all these mines come to fruition and that their economic potential is realized, which is certainly not a given. Aren’t people in Northern BC getting sick of stopgap solutions? People in Northern BC must feel like the 13 year old who still has to eat Christmas dinner with the small children. Don’t worry though folks, one day you’ll get moved up to the adult table . . .
“Aren’t people in Northern BC getting sick of stopgap solutions?”
No…NMG people in northern bc are getting sick of NO solutions. The mining sector in bc has never really been “cyclical” because it never really had the chance to develop itself. Access to the land base issues and a lack of exploration and geological field work over the last 20 or 30 years leading up to 2005 failed to bring new mines online. The mining sector is alot more diverse than alot of people think because of the wide range of commodities it produces.
You are correct northman! Not sure where the employees will come from, as the few mines underway right now can’t find employees.
Well it’s good that the things that held mining back in BC for the last 20-30 years are guaranteed to never happen again, LOL.
I would think that a lack of employees would be a fairly significant barrier to the successful development of a mine, no?
Why are they in such a rush to get everything out of the ground? It’s not going anywhere.
Spread it out and there’ll be sufficient people to do the jobs, and there will be sufficient jobs for the people over the decades ahead.
Seems to me that we have had a number of huge mines operating in BC in the last 20/30 years, some of which have now closed down. Some examples.
Bell Copper Granisle operated for over 15 years and closed down in the 80’s
Granisle Copper Granisle BC same as Bell.
Kemess Mine which operated for 15 years and shut down last year.
Endako Mines have been operating for the past 20/30 years, and have now had a huge upgrade.
Bullmoose, Mine Tumbler Ridge closed in 2003, and the huge Quintette mine closed in 2000. There are other mines operating in the area.
Terrane Metals mine at Mount Milligan is in the process of being built and should be operational within a few years.
Gibralter mines South of Williams Lake has been operating for years.
I agree that highway 37 and the power lines etc; will result in further mine openings, and increased employment, especially for Terrace. Terrace will become a major distribution point.
Right on cougs. It’s very hard to find people who have the skills, let alone willing to move to some of the more remote sites.
And isn’t BC the place where everyone says ‘no’ to industry, the economy, and development?
I think the employment numbers associated with these mines completely refute Enbridge’s claims of ‘job creation’. Sure they’ll need workers to build the pipeline, but they won’t find them in BC. Most business anaylsts are pointing to serious labour shortages in the BC resource industries in the short to medium term
Get packing Enbridge
On the subject of mining, a woman, Gina Rhinehart in Australia who is heirness to an iron-ore propecting empire is the richest woman in the world at 28 billion. Her wealth increased by 20 billion in one year and is set to be the first person to hit 100 billion. It is a product of foreign invetment in new projects, increased production and a recovery in the iron-ore price over the last six months.
This is kind of interesting since Australia just passed a carbon tax against the evil plant growing C02 but sell all the iron and coal they can. Sounds familiar.
Palopu wrote: “Terrace will become a major distribution point”.
THAT is the community, as well as for other reasons, Kitimat, which will see the brunt of the growth.
It has the largest airport in the region; it is close to equidistant between Rupert and Ktitmat, so act as a natural supply centre to them, and are very close to the highweay gateway to the mining corridor.
We also must not forget the sea access to shipping ore out. Stewart will likely be the benefactor of that.
If Kitsault re-opens, Observatory Inlet should be able to provide direct sea access as it has done in the past..
From the link below come these words about the most recent re-opening and shutting down of the Moly mine.
“The same radical shifts in molybdenum supply and demand that had sent prices soaring were now causing prices to crash. The Kitsault dream was over and the mine was suddenly closed down just 18 months after it opened. People were out of work, and convoys of moving vans began to work their way in from Terrace. The brand new shiny town where people had just moved in full of hope and excitement was a ghost town and the big gates at the entrance to town were padlocked.”
A mini “Tumbler Ridge”? … and hundreds of other similar communities across this great country of ours whose northern communities, with the exception of Edmonton, are in a repetitive up and down cycle with considerably higher amplitudes than the large urban areas ……
And thus we have??? …. the exodus from small communities to larger ones …..
And thus we have part of the reason why Prince George will likely never see the same kind of growth that Edmonton has experienced over the last 100 years.
http://www.kitsault.com/about_hist.html
So, yes, NMG is telling it like it is …. the rest are just gold diggers who are waiting for the next big strike and hope they can be part of it …….
Somewhat related,
http://wattsupwiththat.com/2012/05/24/newsbytes-green-energy-transition-germany-fears-de-industrialization/#more-64180
http://www.kitsault.com/video/town_wmv.htm
A small film clip from the site I linked to in the previous post.
25 years, gated, heated, and ready for new occupants ….
Public hearing period for the re-opening of the Kitsault mine are on right now.
“Karina Brino, President of the Mining Association of BC, quoting from studies done by the Federal Association, says the figure of “for sure” mines either in the permitting stage or under construction in the northern half of the province totals 30 billion dollars.”
Can someone please explain what that means to the average person like me who does not want to spend time roaming around to find out what it might mean.
Is that the figure to develop the mines, or is that the total figure to develop and operate the mines over the next 10 years, with some to keep on going for 15 years 25 year 45 years, barring another downturn which would mean that operating the mines would be too costly?
And where does the money go to? How many local contracts, how many national, and how many international?
A simple one might be to just say how much is in it for BC and the Feds in terms of direct taxes from the company and from the mining operation?
Avanti Miniing Corp site fro the Kitsault project has tons of information available.
http://www.avantimining.com/s/TechReports.asp
Look at the December 2009 feasibility study fro details right down to individual job classifications, payroll for each class, camp locations, pier location, major equipment requirements, etc. etc.
The December version is a shorter summary which includes a nice spreadsheet near the end that identifies taxes expected to be paid by the company and all costs assembled into main categories with cash flow projections for the expected life time of some 15 or so years.
Now, if we had those kind of projections for all the others in the above list, and they should be available, a government that cares to be informative and build up detailed estimates of direct receivables and indirect receivables through income taxes as well as costs associated with providing services and some infrastructure, we would have a model that would speak volumes about the cost-benefits of mining to the province and to the regions which will be the recipients of the need to provide services and the payment for providing those services.
We do have computers, you know, which go a long way to building models for “what-if” scenarios.
How are our First Nations faring in the mining sector?
http://www.cbc.ca/news/canada/thunder-bay/story/2012/04/13/tby-mining-first-nations.html
MINING – AT WHAT EXPENSE?
“There’s lots of people working. It gives people some hope,” said Mike Jeremiah, who is home for a couple of weeks before heading back to the mine for another two-week stint.
But in practice, much of that money these days is spent on financing a prescription drug addiction that has affected up to half of the community’s adults.”
The social support side of an up and down economy. That worked for the indiginous people around the world who live/lived a nomadic life following the availability of resources. To the west of the Rockies, there were no nomadic tribes.
The mining industry is generally a nomadic industry. When it runs out of resources, it moves to the next location. Anyone who works in it, knows that. Any infrastructure developed gets left behind as a cost of doing business. There is no duty to develop an alternate oportunity for a sustainable community. Most mining communities are not sustainable.
Anyone who thinks otherwise is a dreamer or a carney barker who thinks there is a sucker born every minute …..
http://www.miningwatch.ca/sites/miningwatch.ca/files/No_Rock_Unturned.pdf
More food for thought about handling mines at start-up, operations, and closures. The REAL costs of doing mining business; the hidden subsidies for an industry.
“mining no longer provides a sustainable base for the development of local economies. The government investments that are required to open new mines and keep mines operating would be better spent on remediation and closure, on sustainable community economic development for remote communities, and on caring for the health concerns of affected residents. Mining must be made to better serve the development needs for an entire region, through effective land use planning and decent resource rents.â
So no mines, no jobs we will just rub sticks together and sing Kumbaya.
You do not understand very much, do you seamutt?
We develop, operate, and decommission mines, no problem from my point of view. BUT, we understand the full cost of what we are doing. Throwing out a figure like $billion a year for the next 10 years is a useless figure.
Or maybe you understand it and can explain exaclty what it means to me.
We spend so much time on the “tree-hugger” environmental syndrome when we do not understand the other costs and who ends up having to pay for that as opposed to who reaps the benefits.
The Kitsault mine is a fairly clean mine. There is a pit and, as far as I am aware, that is it.
JohnnyB, always ready with the jab towards those who think beyond thier pocketbook. Such an unfulfilling life you must lead. Your 80k motorhome and 40k speedboat in your yard for 11 1/2 months of the year must make you feel pretty important next to us guys who just like to live a little less selfishly. Obviously, anyone who is against enbridge MUST be against ALL froms of industry and ALL companies….
The news report states: “The reopening of the Kitsault mine alone will mean 700 jobs for a community that had been mothballed several years ago.”
The “up to” 700 jobs (as the AGM report to the members says) is during the 2 years start up construction phase.
The 16 years of operations has an annual FTE of 300 direct jobs.
Total cashflow projection before tax during those 18 years is $3.185 billion.
But: “Obviously, anyone who is against enbridge MUST be against ALL froms of industry and ALL companies….”
Yes, that’s usually the way it goes. Are you new here?
But: “Such an unfulfilling life you must lead. Your 80k motorhome and 40k speedboat in your yard for 11 1/2 months of the year must make you feel pretty important next to us guys who just like to live a little less selfishly.”
Thanks for the psychological analysis, but I do live well within my means. I’m not sure why you think I have a boat and motorhome.
The reality is – a functioning economy and working taxpayers are required to pay your welfare cheque.
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