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Mining exploration activity fell nearly 12 per cent in B.C. in 2008
January 15 2009 | News Articles | Canadian Press
Mining exploration activity fell nearly 12 per cent in B.C. in 2008
Canadian Press
January 15, 2009
VANCOUVER, B.C. — Mineral exploration spending fell nearly 12 per cent in British Columbia last year after the industry was hit by a slump in commodity prices as a result of the global economic downturn.
While the current outlook for the mining industry is bleak, the province says it is preparing for a turnaround beginning in the latter half of 2009.
“We remain cautiously optimistic as we move forward,” B.C. Mining Minister Gordon Hogg said in an interview Thursday.
He said the province has lost about 1,000 mining jobs in the past four months as companies are being forced to scrap planned mine expansions, cut operations and lay off workers due to the drop in metals and mineral prices.
Hogg said the province is responding with a special economic task force to look at what they can do to weather the downturn. That committee is expected to release its report later this month.
The industry in B.C., including the government and mining firms, is also lobbying Ottawa for recognition in the upcoming federal budget.
Industry players met with Federal Natural Resources Minister Lisa Raitt in Vancouver over the past two days to ask for employment insurance terms to be extended for those in the industry who lose their jobs.
Hogg said the goal is to keep workers living in the small towns supported by the mining industry, so that they will be around when the economy recovers.
Tom Schroeter, president and CEO of Fjordland Exploration Inc. (TSXV:FEX) said the industry is also lobbying for more tax-friendly measures for the industry.
It also wants the Ottawa to leave regulation and permitting to the provinces to prevent unnecessary delays.
Overall, Hogg said the province wants the mining and other industries in B.C. to be given the same level of acknowledgment that the auto industry is seeing in Ontario.
As for the predicted turnaround in the mining industry, Hogg said it’s already a cyclical sector and its people are well-conditioned to cope with economic swings.
“They are probably more prepared for it, at least psychologically, than a lot of industries across our province and across North America,” Hogg said.
For him, that means mining executives and workers are good at managing the downturn, and preparing for a recovery.
The B.C. government said mineral exploration activity in the province came in at $367 million in 2008, down from $416 million in 2007, but still the second-highest level on record.
“We probably would have exceeded the 2007 numbers if we had not seen the downturn,” Hogg said.
B.C. had 54 mines in production last year with 10 metal, nine coal and 35 mining industrial minerals.
The province said there were just over 20 projects under environmental review om 2008, with one new mine starting production.
The announcement comes as many miners are cutting back.
Teck Cominco Ltd. (TSX:TCK.B) said recently it will slash 1,400 jobs worldwide, or about 13 per cent of its staff, to cut costs amid a global slump in commodity prices. About 550 of those job losses will be in Canada, with about 400 in British Columbia, 105 in Alberta and 45 across the rest of the country.
Western Canadian Coal Corp. (TSX:WTN) also announced plans recently to reduce operations at its Brule mine and Wolverine coal operations in British Columbia. The cuts affect 35 of its contract employees at Brule near Chetwynd, B.C. At Wolverine, near Tumbler Ridge, 400 contract and company employees have been given notice.
In the fall, Breakwater Resources Ltd. (TSX:BWR) temporarily suspended operations at its Myra Falls operation on Vancouver Island due to low metals prices.
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