The start of another year is a good time to assess the past and focus on future possibilities, and B.C.’s mineral exploration and development industry is no exception.
The innovative and resilient people working in B.C.’s internationally respected mineral exploration and development industry have faced many hurdles in recent years amid lower commodity prices and challenging venture markets. Those with experience in the industry understand and appreciate that today’s challenges are often tomorrow’s opportunities.
From the gold rush dating back to the mid-1800s, to record high prices set in 2011 for gold, copper and coal following the global recession in 2008-09, explorers have learned how to adjust and take advantage of the industry’s inevitable ups and downs.
Consider that advanced exploration work is taking place at historically high levels in B.C., as our province continues to attract significant investment, especially in copper, zinc, gold and silver projects. In 2014, it is estimated that B.C. attracted nearly 21 per cent of exploration spending across Canada, which is up from 11 per cent during the 2008-09 recession.
The investment is coming from those who understand the industry’s long-term prospects and its proven record of achieving significant returns over time. The world’s population is steadily increasing and becoming more urban, with a growing middle class that will continue to demand things made from metals and minerals. That includes critical infrastructure such as hospitals, airports, universities, roads, railways, ports and bridges and everything that uses electricity — from appliances in your home to smartphones and hybrid/electric cars.
Meanwhile, it is becoming increasingly difficult to find new high-quality mineral resources in safe, stable jurisdictions such as B.C. We are fortunate our province is geologically blessed with world-class mineral-rich deposits located in every region, including Vancouver Island. This is an opportunity we must not take for granted.
Despite the current slowdown, mineral exploration and development activity continue to move forward in B.C. at many advanced projects, such as KSM, Brucejack, Blackwater and Schaft Creek. One of the best indicators of success in exploration is seeing discoveries move through to mine development.
In recent years, we have seen a number of new major metal mines constructed in our province, including Copper Mountain in 2011, New Gold Inc.’s New Afton gold in 2012 and Thompson Creek Metals Co.’s Mount Milligan copper-gold mine in 2013. And the Red Chris copper-gold mine will be in production soon.
Today, there are hundreds of mineral exploration projects and many advanced mine projects underway in B.C.
The provincial and federal government’s co-ordinated one-project, one-review environmental assessment process, which projects in B.C. are now starting to go through, is also expected to benefit the industry by creating a more efficient and effective system, while ensuring safe and responsible exploration and development and earning the public’s trust.
The industry should also see more certainty in its dealings with First Nations following two Supreme Court of Canada decisions (Grassy Narrows in Ontario and Tsilhqot’in in B.C.) last year regarding aboriginal treaty rights and title. The Tsilhqot’in judgment in particular, which confirmed aboriginal title across a tract of land in the B.C. Interior, helps to clarify title rights while confirming that provincial laws apply on aboriginal title land.
Building positive and sustaining relationships with First Nations is integral to successful and responsible mineral exploration and development. The ruling reaffirms engagement and consultation are the right things to do. It empowers mineral exploration and development companies to continue developing stronger relationships with aboriginal communities, as they have been doing for years. The latest decisions will better define those relationships.
The sector has had its share of setbacks in recent years, not unlike other sectors throughout history. Still, British Columbians should be proud to live in a province that is not only rich in mineral resources, but also home to leading-edge exploration research and technology and mineral exploration and development companies run by people with world-renowned expertise and international experience.
B.C. is well-positioned for the next upturn in the minerals cycle. While it is difficult to predict when that will be, history has proven time and again that it will happen. And when it does, B.C.’s responsible mineral exploration and development industry will be ready to meet global demand.
Gavin C. Dirom is president and CEO of the Association for Mineral Exploration B.C., which will host its Mineral Exploration Roundup 2015 conference in Vancouver next week.
