Province Announces Break for Mining Companies
Prince George, B.C.- With commodity prices in the tank, mines throughout B.C. are feeling the impact. Many have curtailed, or ceased, operations. Minister of Mines, Bill Bennett has just announced measures to help mining companies weather the economic storm.
Mining companies will be allowed to temporarily defer a portion of their hydro bills.
“Rural communities across B.C. depend on the high-paying jobs that their mines provide residents,” said Bennett. “We are in the midst of a challenging time for the sector and this will provide some temporary support to help the mines stay open as long as possible, hopefully until commodity prices bounce back.”
The program will be in place for 5 years, the amount any mine will be allowed to defer is capped at the equivalent of up to 75% of its electricity costs over two years of the program.
As commodity prices recover, the mines will repay the amounts deferred, plus interest.
“There are currently eight metal mines and five coal mines operating in the province, employing approximately 7,500 workers.
While this program can’t guarantee mines won’t eventually go into temporary care and maintenance, it is hoped it will help mines stay open for as long as possible.
Mines will be encouraged to borrow funds from other sources, if they can, before deferring a portion of their power bills. Companies with relatively lower levels of debt will pay an interest rate of 12%.
Others will be charged the interest rate that BC Hydro currently charges to accounts over 30 days – prime plus 5%, or about 8% annually.
Each company that chooses to participate in the program will be required to enter into a formal agreement with BC Hydro.
Comments
The bank rates are prime plus 1. What kind off joke is this.
Keeping 7,500 people earning high paying jobs, is not a joke at all!!!!
Keeping these people working keeps restaurants and other business’s open as well. This is an impact of maybe keeping 15-20,000 jobs.
What does this mean, The province just through income tax, will still receive revenues of $225,000 a day x 365 days a year. It really is a no brainer in this economic environment.
I think the province did it wrong by penalizing the mines with a strong balance sheet. They should have tied the duration of the offer to commodity prices. they should have it set at max 70% of the bill to be deferred at a rate of 3% over prime. Take it out of Hydro’s hand. It comes out of a coffer of the $225k/day that the government is receiving by the mines staying open
The mines are huge consumers of power
I’ll try this @ tax time…crusty has to go …flush….flush….
Wonder if I could get a break in my Hydro bill. Maybe they should stop feeding the share holders.
Cheers
Better times = after the mine closes.
Retired, the government forced Hydro to buy expensive power from IPP’S and wind farms. Those costs of liberal friends have to be paid somehow. My costs never get into the second tier.
I hope she gives all the oil workers that have been laid off the same break.. Wouldn’t want to think that she doesn’t care about the voters in her province…..
Obviously He spoke you did not read the terms. Here I’ll paste it for you.
Mines will be encouraged to borrow funds from other sources, if they can, before deferring a portion of their power bills. Companies with relatively lower levels of debt will pay an interest rate of 12%.
Others will be charged the interest rate that BC Hydro currently charges to accounts over 30 days – prime plus 5%, or about 8% annually.
Mines in good standing could borrow money from a bank for prime plus one. Prime lending is at 1%. So the rate is 2%. Takining BC Hydro up on their offer could sink them latter when profits are up. I could understand catching up with the going rate but the interest rate BC hydro is charging in this economy is crazy. If BC Hydro wants to help then hydro needs to chew their lumps too.
Dumbfounded must be either an Indian or an environmentalist.
Please enlighten us all as to your ridiculous assumptions DP.
If you were here when this story was first posted DP you’d have read the comment in the story that said BC hydro could defer there hydro bills until better times. Which has since been edited to remove that part of the story.
What about us little guys? We still have to pay large amounts to run claims when there is equipment involved. Do we get any breaks, no!
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