Premier Clark to BC miners: ‘We’re fighting for you’

VANCOUVER — British Columbia Premier Christy Clark spoke at the opening of this year’s Mineral Exploration Roundup convention, hosted by the Association for Mineral Exploration British Columbia, and told attendees the provincial government “has their back.”

“Resource development is the bedrock to B.C.’s wealth,” Clark said. “In the short-term the mining industry is stretched, but I want you to know that until prices bounce back, we’re fighting for you.”

Clarke said the province is “still in a good position,” touting infrastructure projects worth $7 billion without “the government going into deficit one cent.”

The private sector last year created 50,000 jobs in the province, she noted, and “for the first time in 40 years,” her government is en route to eliminate operating debt.

“All of this didn’t happen by accident — it happened because we had a job plan,” Clark said. “Since 2011 we have stuck with our plan with laser-beam focus, with one of our goals being to open up 17 new and expanded mines … and we’re there now, because we didn’t take our eye off the ball … and now with the condition of the economy, we cannot afford to take our eye off the ball.”

It’s the private sector — not government spending — that builds the province’s economy, she argued, while mentioning that a world-leading cancer research unit in Vancouver is a beneficiary of resource-generated dollars.

“My job is to be your partner,” she told the crowd, adding that she would support the private sector so that it could create jobs through mines and mineral exploration.

In 2014, exploration spending in B.C. topped $338 million.

She highlighted several recent developments in the province: Pretium Resources’ (TSX: PVG; NYSE: PVG) Brucejack high-grade gold property and Imperial Metals’ (TSX: III; US-OTC: IPMLF) Red Chris copper mine in northwestern B.C., along with privately held JDS Silver’s Silvertip silver mine in northern B.C.

The Red Chris mine, which produced its first copper concentrate in February last year, got an 83% majority nod by local First Nation communities, Clark noted.

“We know how important investing in exploration is for our future. Without it, those new mines won’t open,” she said. “There are several other proposals in the development stage and several exploration projects that we believe we’ll see new mines grow from … so make no mistake, we are on the cusp of growth again.”

She announced to applause that the provincial government would extend its mining exploration tax credit — which provides a 20% refundable tax credit that extends to 30% in pine beetle-affected regions — along with a 20% non-refundable mining flow through share tax credit.

She also said her government is working on a plan to help companies defer the “considerable” power costs for operating mines until “commodity prices bounce back.”

She added that “this is something we have to get exactly right. It can’t be a subsidy that puts taxpayers at risk, but we understand that jobs and communities are at stake if [struggling mine operators cannot] defer electricity rates.”

Another challenge facing B.C. explorers is land access.

“There is no secret that there will always be … pressure on the government to reduce the amount of land available that’s restrictive to resource development,” she said. “We should always focus on making these decisions in the best interest of jobs, for the future of our children. And the answer to that is sustainable development.

“It’s not to say we’re not going to do it. We’re going to do it, and prove to the world that if you have to extract resources from B.C., it’s done as cleanly as possible, with minimal environmental impact, and that it includes First Nations, is fair to communities and will create jobs,” she said. “And that’s not something we have to learn to do in the future. It’s something we’re doing right now, all over the province.”