BP Canada’s mining success stems from solid exploration

Mining continues to be an important part of the company’s over-all operations and last year accounted for 42% or $129 million of BP Canada’s total revenue. BP’s mining division employs 24% more people than its oil and gas division.

“There is a need to ensure that markets recognize and understand the mining involvement of BP Canada,” the company recently told a group of financial analysts in Toronto. “Ways of improving this will be pursued,” the company said.

BP Canada is 57%-owned by the giant multinational British Petroleum Co., which recently sold its international minerals businesses, excluding those of BP Canada, to RTZ Corp., of London, England. The management of BP Canada has said that the recent sale does not affect the operation of the company’s mining division in Canada.

Among BP Canada’s major mining operations are its 55%-owned Selbaie copper-zinc-gold-silver mine, situated 85 km north of Joutel, Que., and its 75.7% equity interest in Hope Brook Gold (TSE), which operates Newfoundland’s only producing gold mine. The Hope Brook mine is currently producing from underground, but difficulties with effluent treatment caused a temporary shutdown of the mill earlier this year. BP management likes to point out that these two mines were virgin discoveries made by the company’s exploration teams.

A strong program of grassroots mineral exploration will be maintained this year with expenditures totalling $9.1 million, the company says. Last year, BP spent just over $10 million on exploration for precious and base metals in Canada. Emphasis is on areas around its existing mining operations and in the Appalachian region.

In central Newfoundland, BP Canada holds an extensive and promising tract of land comprising 600,000 hectares — by far the mining division’s largest land holding. The Victoria Lake area properties include the Buchans and Tally Pond polymetallic deposits. Operator at Tally Pond is Noranda Inc. (TSE), owner of 60% of that project. More drilling is planned this year.

Recently appointed as senior vice-president of mining for BP Canada was John Auston, who had been vice-president of the Selco mining group of companies during the early 1970s.

]]>