Editor’s Note A WORLD CONTENDER

No one can be happier about the remarkably strong copper prices we’re seeing than miners in British Columbia, the largest copper-producing province in Canada. British Columbia alone ranks sixth among copper-producing nations, behind Peru but ahead of Australia.

Better copper prices in 1987 will help end the losing streak experienced by the province’s mining industry. A Price Waterhouse survey of 30 mining companies in the province showed a combined loss of $41 million in 1986, the fifth year of that woeful record. This year and next, things should be different. A mere 1 cents increase in the average price of copper over the year would mean another $65 million in revenue for the province’s copper producers.

At the forefront of B.C.’s copper-mining industry is Highland Valley Copper (hvc). Formed in 1986 through a combination of two existing mines and mills, Highland Valley’s rank as a major international producer doesn’t seem fully acknowledged by the industry. As David Duval points out in this issue (starting on page 20), average annual production at hvc in 1987 and the next few years is expected to be about 379 million lb — almost half of Canada’s entire output in 1986. That will place Highland Valley firmly near the top of world producers. In terms of tonnage milled, hvc is second only to Bougainville Copper’s mine in Papua New Guinea. In terms of contained copper in concentrate, it ranks seventh in the world.

At a time when base metals are largely forgotten as a target for capital investment or exploration (compared with gold), rationalization of British Columbia’s Highland Valley operations is a welcome development. Not only does it make good business sense for the companies involved, it also enhances Canada’s position as a mineral- producing nation.

For example, the dollar value of exploration for base metals as a percentage of total mineral exploration fell to 18% in 1985 from 44% in 1977. At that rate, copper reserves, which declined 15% over the same period, will not be replaced quickly enough to maintain current national production levels.

That’s why developments such as the Highland Valley reorganization mean a lot to all Canadians — not just the companies involved. Highland Valley won’t replace those reserves that will be mined — only exploration can do that — but it will help maintain export levels and extend the time available to discover new mineable deposits.