BC gov’t sets mining goals

The provincial government will do whatever it can to put British Columbia back on top of the mining industry, and I want to thank those companies that have stayed in the province and toughed it out.

Among those companies are: those led by the Hunter-Dickinson group and their Prosperity project in the Cariboo-Chilcotin region; Booker Gold and its Babine Lake project; Northgate Exploration and its North Kemess project; Eastfield Resources and its Omineca project; DRC Resources and its work at the Afton mine site in Kamloops; and Sultan Resources in the West Kootenays.

Among the companies that are beginning to see results are Western Canada Coal and Global Tex, both of which are pursuing coal mining in the northeast. And to companies, such as BHP Billiton, that are returning to British Columbia, I extend a warm welcome, and I invite others to do the same.

By speaking with companies and industry associations, I now know what your industry needs to restore mineral exploration and mining activity in British Columbia. With that in mind, the government’s goals are as follows:

– establish a single-window permitting authority for mineral exploration and mining;

– implement improved regulations and standards for compliance and enforcement;

– streamline regulation by a third over three years;

– develop a focused geoscience program delivered in partnership with the private sector; and

– use e-commerce for applications, permitting and map selection.

These changes also mean that a new structure is required for the Ministry of Energy and Mines, a structure designed to provide better, more efficient service to the industry.

In an effort to help the mining industry and the economy recover and thrive, we’ve taken some decisive steps. For example, we have implemented a new 20% flow-through share tax credit for new mineral investment. The B.C. credit is harmonized with the federal government’s 15% flow-through tax credit to provide tax savings and credits worth 63% of share investments. This is in addition to the existing Canadian Exploration Expense deduction of 100%.

Meanwhile, personal income taxes have been reduced by 25% and corporate capital tax has been cut in half. The latter will be eliminated in September.

The government has removed the provincial sales tax on production machinery and equipment for the minerals industry, and corporate income tax was reduced by 3% to 13.5% in January 2002.

While reduced taxes are one part of the plan, we are also intent on eliminating overlapping legislation. Toward this end, we will continue a rigorous program of deregulation and streamlining of approvals and permitting.

We’re working with the ministries of Sustainable Resource Management as well as Water, Land and Air Protection to establish a single-window authority to regulate all aspects of mining. The goal is to process approvals for mineral exploration efficiently while upholding high environmental, health and safety standards. This should eliminate delays and reduce costs, making it more cost-effective and efficient to explore for and operate mines in British Columbia.

Furthermore, we’re working with companies and the industry associations on suggested changes (such as changes to the Mineral Tenure Act) to ensure access to land and resources. For example, the amended act would define a mineral claim as an interest in land, rather than a chattel interest.

As well, we’re working on a two-zone system for exploration access that would provide security of mineral titles. Under the system, areas would be zoned as either opened or closed to mineral exploration, thus eliminating ambiguity. We also propose clarifying the provisions governing a titleholder’s responsibilities when operating on private land.

And to provide greater access to Crown land and resources, I am recommending government pursue partnerships with the private sector to build better infrastructure. This is particularly essential to provide access to remote areas.

These are among the important steps the British Columbia government is taking to restore investor confidence in exploration and mining.

— The preceding is an edited version of a speech presented by the British Columbia Minister of Energy and Mines at the recent Cordilleran Roundup in Vancouver.