Mining Digs Record Year

By 250 News

Map illustrates participants in  latest survey report produced by Price Waterhouse Coopers and Lybrand

Mining has hit a new high in B.C. That is the bottom line of the 28 page report "Opportunity, the Mining Industry in British Columbia in 2006."

The latest report  produced by Price Waterhouse Coopers and Lybrand says the Gross revenues from mining in B.C.  in 2006 were $8.1 billion dollars, that’s a 29% increase over the  $6.29 Billion  gross revenues in 2005.

Net earnings last year were $2.3 Billion, up from the record breaking $1.8 billion in 2005.

Employment  in the mining industry went from  7071 in 2005 to 7,345 last year.

In short, the report says  the results sepak for themselves "They are nothing short of spectacular" reads the report released today at the B.C. Mining Association’s  annual conference underway in Vancouver.

The report also notes "the increase in claims staked is a direct result of improvements in the efficiency and effectiveness of the permitting process, including the new online staking system. This has made the process easier and more affordable."


The B.C. Government expects to see a 20% increase in exploration expenses this year. and the Government  says investment in mineral exploration  soared to  a record high 265 million in 2006.  The PwC report states that this "significant" increase in exploration spending "is encouraging and suggests that the level of annual spending required to identify new mining projects is gradually being achieved."

However,  the  report points to concerns over the length of time it takes to  reach the permit and operation stage 

For example:   At the end of 2005 Price Waterhouse Coopers Lybrand reported 18 projects  were in the permitting stage.  Only 3 of those projects progressed to operational status in 2006.

At the end of 2006 there were 25 mines  awaiting permitting, with only 6 expected to go into operation in 2007.

The report also notes that in almost at the cases, the mines awaiting permits were previously known  deposits "The Province needs new  discoveries and it needs them now to take advantage of the current strong commodity prices and to mitigate the risk associated with the 10 year development cycled and timetable to bring a mine from initial discovery to operational status."

The report concludes that  "identifying and developing new deposits in order to continue to supply this huge demand remains the biggest challenge."

The B.C. Mining Association President  Micheal McPhie says that is the challenge "Despite more than $8 billion in development potential in BC, very few companies have actually made the decision to build new mines. Clearing the path to get these projects into construction and production will be a key factor in whether BC can meet the increasing demands of our public health care and education systems." 

McPhie adds “This is a defining moment for BC.  We can either define the moment ourselves through strong policy, leadership and vision or the moment will define us and the future prosperity of BC could be in question.”

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