Commentary: BC’s the place to be for exploration and development

The innovative and resilient people in B.C.’s internationally respected mineral exploration and development industry have faced many hurdles in recent years amid lower commodity prices and challenging markets. However, members of the Association for Mineral Exploration B.C. (AME BC) with experience in the industry understand and appreciate that today’s challenges are often tomorrow’s opportunities.

Despite the current slowdown, mineral exploration and development continues to move forward in B.C. at many advanced projects, such as KSM, Brucejack, Blackwater, Red Chris and Schaft Creek.

One of the best indicators of success in exploration is seeing discoveries move through to mine development. And in recent years, we have seen new major metal mines built in our province, including Copper Mountain in 2011, New Gold’s New Afton copper-gold mine in 2012 and Thompson Creek Metals’ Mt. Milligan copper-gold mine in 2013. And the Red Chris copper-gold mine will be in production soon.

Today, there are hundreds of mineral exploration projects and many advanced mine projects underway in B.C.

It is no coincidence that with exceptional mineral wealth comes a plethora of expertise to support exploration and development. 

B.C. has the largest concentration of exploration companies and geoscientists in the world. Out of all Toronto Stock Exchange and TSX Venture Exchange-listed mineral exploration and mining companies, 58% are headquartered in B.C. 

It is also home to global leaders in academic and applied research with the University of British Columbia’s Mineral Deposit Research Unit, Geoscience B.C. and the B.C. Geological Survey, to name just a few. 

Along with being renowned as the assaying capital of the world, there are more than 2,000 exploration and development service and supply companies that call this province home. 

This extensive business cluster means the industry is at the forward edge of exploration practices allowing for smarter, more efficient, cost-effective and environmentally conscientious projects. 

B.C. also has the infrastructure to support mineral exploration and development. Citizens of the province are served by a well-maintained water, rail and road network connecting us east to west with the rest of Canada and north to south with the U.S. And the coastline is dotted with deep-sea ports that are gateways to resource-hungry economies in Asia. The opening of the Northwest Transmission Line mid-2014 and the provincial government’s recent decision to proceed with the construction of the Site C dam and hydroelectric power generation project in northeastern B.C. will provide clean energy to our growing urban populations and also help mineral explorers and developers attract investment and meet power demands for their projects at lower costs.

And consider that advanced exploration work is taking place at historically high levels in B.C. as the province attracts investment, especially in copper, zinc, gold and silver projects. In 2014 it is estimated that B.C. attracted nearly 21% of exploration spending across Canada, up from 11% during the 2008–09 recession. 

The investment is coming from those who understand the industry’s long-term prospects and its record of achieving returns over time. The world’s population is steadily increasing and becoming more urban, with a growing middle class that will demand things made from metals and minerals. That includes critical infrastructure such as hospitals, airports, universities, roads, railways, ports and bridges, and everything that uses electricity — from home appliances to smartphones and electric cars.

It is becoming harder to find new high-quality mineral resources in safe, stable jurisdictions such as B.C. Our province is geologically blessed with world-class mineral deposits in every region, and this is an opportunity we must not take for granted.

The provincial and federal government’s coordinated “one-project, one-review” environmental assessment process is also expected to benefit the B.C. industry by creating a more efficient and effective system, while ensuring safe and responsible exploration and development, and earning the public’s trust.

Building positive and sustaining relationships with First Nations is integral to responsible mineral exploration and development. The two Supreme Court of Canada decisions last year regarding aboriginal treaty rights and title (Grassy Narrows in Ontario and Tsilhqot’in in B.C.) provide more certainty to the industry and reaffirm that engagement and consultation are the right things to do. They empower mineral exploration and development companies to forge stronger relationships with aboriginal communities, as they have been doing for years. The latest decisions will better define those relationships.

AME BC will strengthen relationships with aboriginal communities, leaders and organizations to foster positive and mutually respectful relationships with the industry. 

To support this goal, AME BC updated its Aboriginal Engagement Guidebook last year to help industry better define the “duty to consult” and other best practices.

It is true the industry has been affected by the current cyclical downturn in global markets and metal prices. Companies have been scaling back their operations to adjust to the venture capital crisis and lower commodity prices. At the same time, many are preparing for future growth through strategic planning and investments. In fact, there are many experienced companies and excellent projects in B.C. that advance even in these tough times. They know better than anyone else that what goes down must eventually come up. 

So when the mineral cycle enters its inevitable upswing, B.C. will be well positioned, as it should be, at the top of the list of places to responsibly explore for the mineral riches that the world needs.

— Gavin C. Dirom is president and CEO of the Association for Mineral Exploration B.C. AME BC hosts its Mineral Exploration Roundup conference in Vancouver from Jan. 26 to 29, 2015. Visit www.amebc.ca for details.