INDUSTRY HIGHLIGHTMINING IN BRITISH COLUMBIAReady forTakeoffB Y B I L L T I C EB.C.’s mining industry is gearing up fora renaissance in activity and explorationIt’s not quite a Tsunami, but the booming economies ofAsia are producing a ripple effect across the Pacific that ishitting the shores of British Columbia in a very good way.Demand for raw materials is high, prices are rising andthe province’s mining sector is looking forward to a periodof recovery and growth. The long overdue resurgenceis far-reaching and long-term, industry insiders suggest.“We are seeing decade-high prices, major demand for mineralsfrom China and other countries and we are experiencingrapid growth here at home,” says Jim Cox, vice-president ofoperations for Ledcor CMI (Civil, Mining and Infrastructure),a division of the Ledcor Group of Companies. “Everything isin place for us to have a sustainable mining industry in B.C. forat least five to 10 years.”The company was quick to capitalize on the upswing inthe market. Last year, it entered into a joint venture with Vancouver-basedGibraltar Mines Ltd., a subsidiary of VancouverbasedTaseko Mines Limited to re-open the Gibraltar open pit36 TRACKS & TREADS • Summer 2005 www.finning.ca
copper mine near Williams Lake, B.C. “The Gibraltar mine hadbeen maintained in standby condition for the past few yearsdue to poor market conditions for copper,” Cox adds. As operator,Ledcor hired 47 staff employees and 187 hourly personnelfor the operation. At 35,000 tonnes per day, the mine isexpected to produce an average of 70 million pounds of copperand 980,000 pounds of molybdenum concentrate annually.The reopening of the Gibraltar operation in October lastyear was a clear signal the mining sector’s comeback is officiallyunderway. “We are emerging out of a time that was prettytough for the mining industry in this province,” says MichaelMcPhie, president and CEO of the Mining Association of BC(MABC). “We saw a lot of mine closures in the late 1990s andthe last few years have been difficult, but we are definitely seeingresurgence in the industry.” Exploration spending was upby more than 300% in 2004, to $130 million from just $29million in 2001,” he says. “In addition to having the Gibraltarmine re-opening, we had two new coal mines come on-streamin the northeast sector of the province.”Eleven new mines are in the works in the province. Fourare currently in the pre-application stage and seven others aregoing through environmental reviews. In total, more than $2billion in investment is expected in new mines. According tothe MABC, mining is a $4 billion industry in the province.Mining jobs are the highest paid in the resource sector, averaging$94,500 per year, including benefits in 2003. The PricewaterhouseCoopers2003 Mining Report outlines mining accountsfor 6,000 direct jobs and 12,000 indirect jobs in B.C. Provincialrevenues from mining increased to an estimated $115.9million in 2004 from $53.9 million in 2001. Meanwhile, provincialmineral tax revenues rose to $107 million in 2004 from$44.7 million in 2001, according to the MABC.“The next few years are going to be a very exciting timefor B.C.’s mining industry,” says Pat Bell, the minister of statefor mining. “The current government recognizes that miningcan, and should, play a key role in the economy of this province,”he says. “We asked the industry what we needed to doto ensure that B.C.’s mining industry would be competitivewith other jurisdictions, and then we implemented programsto make this happen.” Bell explains the elimination of provin-“The supply chain is enjoyingstrong growth as the B.C. miningindustry continues to grow,”says Vin Coyne, chairman of theBC Mining Suppliers, Contractorsand Consultants Association.cial sales tax on equipment and the corporate capital tax arefuelling industry growth. The government recently introducedthe Mining Plan for B.C. “This is a detailed document with 57action steps designed to enhance the mining industry, and it isa great tool for the province in developing our mineral resources,”Bell explains. The MABC’s McPhie says the February provincialbudget commits $18 million to the plan and sends apositive signal to investors. “The latest budget has generallyhad a positive impact on the mining sector, and although westill feel there is some work to do, we think it is a move in theright direction.”The service and supply sector is also picking up on thewave of increased activity. “The supply chain is enjoyingstrong growth as the B.C. mining industry continues to grow,”explains Vin Coyne, chairman of the 175-member BC MiningSuppliers, Contractors and Consultants Association. “Higherworld prices for minerals, growing demands from Asianmarkets, and the favourable business climate created by thecurrent B.C. government are the major contributing factors.”Coyne adds suppliers benefit from a “two for one” spin-offfrom increased mining activity – one supplier job is createdfor every direct industry job.Brent Davis, <strong>Finning</strong> (<strong>Canada</strong>)’s general manager, mining,coal and base metals agrees. “We are adding customer supportpeople as well as mechanics in all of B.C.’s mining areas.”<strong>Finning</strong> is delivering a fleet of eight 785C 150-ton trucks, tothe Imperial Metals Corporation operation at the Mount Polleymine near Williams Lake. Also, Teck Cominco’s HighlandValley Copper mine south of Kamloops has ordered moreequipment, including five 793 240-ton trucks, he outlines. “Ifyou take into account our traditional mining business at ElkValley Coal in Sparwood and Kemess Mines north of Smithers,we are seeing excitement in all areas of the mining sector.The key indicators are pointing to a high level of activity forquite some time,” Davis says. “This increased activity is greatfor everyone involved.”www.finning.ca Summer 2005 • TRACKS & TREADS 37
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