BC miners wary of First Nation court rulings

British Columbia’s mining industry says the province is gaining momentum on major projects, but warned that regulatory uncertainty linked to Indigenous rights court rulings and rising costs could jeopardize future investment.

The sector generated $19.6 billion (US$14.4 billion) in economic output in 2024, supported 56,000 jobs and contributed nearly $6 billion in government revenue, Mining Association of B.C. CEO Michael Goehring said on Tuesday at the Greater Vancouver Board of Trade.

But Goehring said lengthy regulatory processes remain the “primary barrier” to new mine development while recent court decisions tied to B.C.’s Declaration on the Rights of Indigenous Peoples Act, or DRIPA, have created unease around approvals.

“We need clarity, we need certainty,” Goehring said during a panel discussion moderated by Conversations Live host Stuart McNish. “Investment hates uncertainty.”

Mining companies continue to work closely with First Nations communities through partnership agreements, employment initiatives and equity participation opportunities, but Goehring said governments must provide clearer policy direction. It comes on top of Iran war-induced higher fuel and supply costs and tetchy trade relations with the United States amid a flurry of tariffs. 

Eby response

The British Columbia Court of Appeal ruled in December that DRIPA incorporates the United Nations Declaration on the Rights of Indigenous Peoples and creates legally enforceable obligations for the province and developers.

Premier David Eby has been under fire for flip-flopping on plans to first amend or suspend parts of DRIPA in order to speed projects, then backtracking in the face of opposition. 

 

 

The sector is also pushing back against provincial tax changes, arguing that the expansion of the provincial sales tax to some professional services will increase costs for mining projects already facing financing pressures.

One advanced-stage mining company estimates the changes could add between $2 million and $3 million in costs between 2027 and 2030, Goehring said.

At the same time, the industry faces looming labour shortages. According to the Mining Industry Human Resources Council, B.C. will require 5,000 net new workers over the next decade to meet expected demand.

Rising demand

Despite the challenges, mining executives said B.C. remains well-positioned to capitalize on rising global demand for critical minerals and metals needed for electrification and energy transition projects.

“It’s a once-in-a-lifetime opportunity,” Goehring said. “But now more than ever, we need to remain focused, committed and determined.”

The industry is pointing to signs of progress after the provincial government fast-tracked  projects this year, part of the federal Major Projects Office. Of the four mining projects included on the province’s list of 18 priority developments, three have now received permits and two are under construction.

Among them are Teck Resources’ (TSX: TECK.A, TECK.B; NYSE: TECK) Highland Valley Copper extension near Logan Lake, Skeena Gold & Silver’s (TSX, NYSE: SKE) Eskay Creek project in northwestern B.C., and Centerra Gold’s (TSX: CG; NYSE: CGAU) Mount Milligan mine life extension near Prince George.

The projects are part of what the industry says is a broader surge in mining activity across the province, particularly in northern B.C., where 24 proposed projects are in various stages of development.

Potential investment

Industry leaders say the scale of potential investment is enormous. Construction of those northern projects alone could generate more than $67 billion in economic output, according to figures cited the B.C. associations’ report. 

The province has 18 operating mines and two smelters, the Rio Tinto (LSE, NYSE, ASX: RIO) BC Works aluminium smelter in Kitimat and Teck Resources’ zinc-lead smelting and refining complex in Trail. 

“Mining has a small physical presence, but a large economic impact in B.C. Our mines punch well above their weight,” Goehring said. 

While BC is a major producer of copper, there are currently no operational copper smelters in the province. Goehring pointed out the economics of a build are currently unviable. 

Vancouver impact

Goehring also emphasized mining’s growing importance to Metro Vancouver’s economy. Anglo American’s (LSE: AAL) proposed $53-billion mega-merger with Teck Resources would create a global copper giant headquartered in Vancouver. 

Metro Vancouver is home to nearly 1,000 mining and exploration companies with a combined market capitalization of roughly $449 billion, Goehring said.

Mining supported more than 12,300 jobs in Metro Vancouver in 2024 and generated more than $3.5 billion in annual economic output for Metro Vancouver and Vancouver Island, according to the associations’s report. 

“While Calgary has oil and gas, Vancouver has mining,” Goehring said. “Metro Vancouver is a global mining centre.”