British Columbia’s mining industry earned $61 million in 2001, compared with a loss of $8 million in the previous year, according to a survey by PricewaterhouseCoopers.
The survey notes that mining revenue in the province increased to $3.7 billion from $3.59 billion between the two periods, while cash flow from operations shot up to $609 million from $454 million.
On the downside, exploration and development spending dropped to $10 million, the lowest level in at least 34 years. Grassroots spending, in particular, has remained below $2 million for the past three years; only $1 million was spent in 2001.
“We are at a critical point,” says Gary Livingston, president of the Mining Association of British Columbia. “The government is about to make some significant policy decisions that will [have an impact on] exploration spending and determine whether it recovers to the levels needed to sustain the industry.”
Coal, the largest sector of the province’s mining industry, accounted for $962 million, or 37%, of all mining-related revenue last year. Meanwhile, overall mining-related revenue was hampered by low base and precious metals prices.
Total industry expenditures increased by $76 million, to $3.48 billion, reflecting a significant increase in dividends paid.
Expenditures on environmental protection and monitoring, reclamation and compliance totalled $63 million, compared with $45 million in 2000.
About 7,630 people were directly employed by mining operations in the province, compared with 7,990 in 2000, and the number is expected to decrease further in 2002.
The report includes all companies with mining operations in the province, except juniors involved solely in exploration. It is available at www.pwcglobal.com/ca-mining
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