MINER DETAILS (April 13, 1992)

The Mining Association of British Columbia doesn’t like the first provincial budget brought down by Michael Harcourt’s New Democratic Party. The industry is taxed-to-the-max already, the association says, and increasing corporate taxes and other direct and indirect taxes will only serve to further drive the industry out of the province.

British Columbia’s rookie Finance Minister Glen Clark warns that next year’s budget could be equally tough. Business, including mining, fires back that more tax, license and fee increases won’t lead to a healthy economy, but to further erosion of our competitiveness in a global economy, and a flight of capital, talent, technology and jobs.

The irony is, as economic liberty continues to be eroded in British Columbia and other parts of North America by political parties of every stripe, something very different is happening elsewhere in the world. An economic revolution is taking place in Latin America, in many countries in Africa, in Eastern Europe, in the former Soviet Republics, and even in such countries as Laos and Vietnam.

What all this means is that as our governments help turn mining into a sunset industry here, mining is being made a sunrise industry someplace else. And as our policies and tax burdens turn ore into waste here, other countries are turning waste into ore by removing impediments to investment and development. This is particularly relevant for British Columbia where coal and copper are the two most important mineral commodities produced. Our coal industry is in crisis. Our copper mines are aging, and some operate with the lowest grades in the world. We have other low-grade copper and copper-gold deposits waiting to be exploited, but most will sit on the shelf unless metal prices improve dramatically, or unless government realizes that piling on new taxes, fees and onerous regulations renders more and more projects uneconomic. If British Columbia wants a mining industry, it must do what other nations around the world are doing; establish policies that will allow the industry to thrive. This will require a new mindset on such issues as taxes, water fees, hydro policies and infrastructure assistance.

If positive changes aren’t made soon, British Columbia’s loss will be Chile’s gain.