Switch From Forestry To Mining And Suffer The Same Fate

Monday, January 12, 2009 03:45 AM

Suddenly the very industry that was to carry this region through the tough times in forestry has also turned to dust.

Up until a few months ago, the whole area was abuzz about the future prospects of the mining industry in this province.

Mining it was said will take us through the next decade as forestry tries to regain its former self. Then came the melt down of the world economy and with it, a market that dried up as quickly as it had began for every kind of mineral needed to drive the world economy.

The problem of course is that a lot of workers took the advice of government and headed out to the mines hoping they would launch a new career not tied to a cyclical industry like forestry. What they have found themselves in is a boat heading down the river with both industries riding in the helm.

It is hard to imagine that the market for coal, aluminum, copper and other metals needed for industry could dry up so quickly, but they have.

It is much more difficult to try and accept that we need a 70 dollar a barrel price for oil in order to keep the tar sands and other development in the industry from heading down the same path.

We may have the resources that the world needs but with the demand at an all time low , we find ourselves with a dollar that has shrunk and with little prospect that it will change in the immediate future. You would think that a country that has such vast resources that are the life line of so many countries would have a well valued dollar and yet it doesn’t and to date no one seems to understand why.

I’m Meisner and that’s one man’s opinion.

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Posted on Monday, January 12, 2009 03:45 AM in Views by Ben Meisner

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Comments

Posted by: Mercenary on January 12 2009 5:55 AM

I find it hard to believe that we need 70 bucks a barrel to make the tar sands work. Only a few short years ago oil was down around 30-40 bucks a barrel and projects and exploration was happening like gangbusters. Its just another example of how these oil companies are trying to gouge the public to fatten their wallets.

As for the other minerals such as copper, gold, aluminum, and coal that is a real blow to the BC economy. I don't think anybody saw that one coming.

Posted by: Ragtop on January 12 2009 7:54 AM

Mercenary, "I don't think anybody saw that one coming" Some did,but nobody was listening or should it be wanted to listen.In BC,politicians tried to put blinders on us to get thru 2010,in our nations capital we are more interested in party politics. GREED. Copper at 70 cents / pound,Highland Valley,Huckleberry,Kemess,chugging along for years,last summer $4.00/pound now what? Endako $3.00/pound for Mo, chugging along for years. Last summer $34.00/pound now what?The bubbles were all over the place.

Posted by: northman on January 12 2009 8:00 AM

Just a hickup in the comodities. Here is whats going on!
-New bull market for gold emerging.
-large mines scaling back from teck cominco,taseko and the closure of kemess south in a couple years will put a dent in the copper suply.
-The demand for copper will increase once the auto companies start increasing production of hybrids. (See auto news releases from january 11th.)
-When any large mines announce cut backs it looks very good for any junior with good ore grades and a NI 43-101 resource estimate.

Posted by: MrPG on January 12 2009 8:28 AM

Mercenary, I heard the tarsands do just fine at $35-$40 a barrel.

As the world economy improves, demand for basic commodities an minerals will increase. Why is this so hard to understand? Nothing operates in a bubble.

Posted by: Eagleone on January 12 2009 9:41 AM

IMO as goes the housing market goes the automotive market. In addition to 2x4's in the houses... the houses and cars also use a lot of copper for the wires, and aluminum for the car body and house siding... and it all takes coal to transform a raw resource to a finished product... so no, it shouldn't have been a surprise to anyone that these industries would have a shared fate with the lumber industry as a result of banking housing bubble.

Posted by: Bridge on January 12 2009 10:37 AM

As long as we continue to let profits from industry leave our country we will always be dependent on world markets. How much simpler can it get. But we have these "the cup is half full people" and untill we start to manage our economy in a realistic manner we will continue to be hewers of wood and carriers of water.

The population of Canada has increased dramaticaly in the last few decades so why have we not gone to secondary industry to provide jobs and create a self sustaining economy. All we see is big is better.

Profits that need to be invested in secondary industry are uesed to buy up the competion. We are living in a world of greed and the good life. It is time we lowered our sights and started to live in the real world.

cheers

Posted by: Chester on January 12 2009 7:14 PM

Start saving and producing and stop spending and consuming. What do you think drives everything we are discussing? As production slows, so does supply. It won't be long when demand steps up and supply doesn't and can't provide the demand.

Guess what, up goes the prices of gold, commodities, precious metals and energy again. How can you stop the demand? Consumers are consumers. That is not going to change. The most difficult thing for most people to change is their behavior. I don't believe they can, so I am confident that consumption will continue. And so goes the markets and then the economy about 6 months later.

Posted by: socredible on January 12 2009 7:37 PM

Why, pray tell, would we ever want to "start saving and producing and stop spending and consuming". We PRODUCE to CONSUME, not the other way around. Any nation is not rich by what it 'saves', but by what it 'spends'. 'Money' is merely a 'ticket' that claims 'wealth', not 'wealth' itself.

Nobody was ever nourished by the roast in the freezer, while it's in the freezer. That roast is only 'wealth' to you ~ i.e. 'well-being', the original definition of 'wealth' ~ after it's been thawed and cooked and eaten.

You wouldn't starve yourself to death figuring that through 'saving' the roast you were somehow 'wealthy'. Nor should you feel you have to continue to produce 'more' to consume what you've already produced.

Posted by: NMG on January 12 2009 10:31 PM

Forestry and mining are still both resource sector economies so while having both of them operating in our Province is better than relying on just one, it's still not exactly a diversified economy as a whole.

If we want to be as protected as we can (and in fairness it would be tough to be completely protected in this particular environment), we need to try and develop all sorts of industries to the Province.

This should include resource based industries, agriculture, manufacturing, tourism, technology, finance, R&D, etc. We have pockets of that stuff spread around but I think we are still stuck with the mindset (especially in the rural areas) that all we need to do is chop down trees, extract minerals and find oil and all will be fine.

We've been completely complacent in how we've developed our economy and in many cases (especially locally), we've even laughed and scoffed at ideas that could help us through difficult times. It won't change overnight, but our views and ideas need to change or we'll be stuck reading articles exactly like these at various points in the future again.