Davis optimistic on B.C.’s mining future

Jack Davis, British Columbia’s minister of Energy, Mines and Petroleum Resources, told members of the Canadian Diamond Drilling Association that B.C.’s mining industry enjoyed a period of “relative prosperity” in 1989. And Davis expects mineral activity to be maintained at “reasonable levels” this year, which comes as welcome news for member companies active in the province.

Speaking at the Association’s annual convention held in Vancouver, Davis based his optimistic outlook on the province’s significant mineral potential and the “ingenuity” of the individuals and companies who find the deposits and develop them into mines.

In that vein, Davis outlined recent legislation introduced and put in place by his government which he said showed the province was “open for business” in mining.

One of the more significant changes — an initiative welcomed by the industry — was a streamlined “single window” approach to the mine project review process which includes design approval, permitting, inspecting, monitoring, and responsible closure.

Through this system, mining companies are able to deal with all interested parties — environmentalists, federal agencies, and others — when making proposals to develop any new mining operation in the province.

“We can carry a proposal for any mine project around the table, so to speak,” Davis explained. “This way, in a short period of time, the paper shuffling is over and you know where you stand.”

In 1989 — after two years of consultation between government, industry and labor organizations — a face-lift was given to the Mines Act which governs more than 4,000 mining operations in B.C., including placer mines and sand and gravel pits.

The New Act featured enhanced worker safety, strengthened environmental and reclamation standards and incentives, stronger enforcement powers, and higher penalties for offences.

And late in 1988, Mines Minister Davis and Parks Minister Terry Huberts hammered out an exploration policy for parklands and recreational areas, the result being that mineral exploration was no longer permitted in parks. In the process, some recreational areas were upgraded to park status, while others were opened for mineral exploration.

“We have a policy that is categorical in that no mining is allowed in parks,” Davis said. “But I don’t think we need many more parks in the province.”

Davis also outlined recent comprehensive changes to B.C.’s taxes on metals, coal and industrial minerals that came into effect last year.

“The New Mineral Tax Act consolidates four existing statutes and sets up a common, profit-based system for all mines in the province,” Davis said. “It is the fairest and most advanced approach to mining taxation in the country.”

Davis also noted that the new profit-based tax would help mining companies ride out times when metal prices are low and earnings reduced, as such price swings are a fact of life for mining companies.

But diamond drilling companies expecting to be active in northwestern British Columbia this year were clearly disappointed by the Minister’s comments on the proposed access road into the Iskut River region, northwest of Stewart.

Although Davis indicated the government might put some money “up front” for the road, on the expectation of being repaid by a toll, he said any road would have to be privately-owned and maintained.

“Our approach is to have industry pay for access,” Davis said. “The road would essentially be a private sector road — and industry should pay for something industry has to have.”