Mining industry “a priority” B.C. premier tells Chamber

Without giving any specifics, the premier of British Columbia told a B.C. & Yukon Chamber of Mines luncheon that deregulation will be a top priority for his government.

According to William Vander Zalm, a major emphasis has been placed on “removing red tape” and eliminating regulations that have hindered economic growth in the past. He claimed deregulation would help the mining industry which he said was “a priority in the province.”

Mr Vander Zalm also pointed out that B.C. was seeking further help for the mining industry “along the lines of the previous federal- provincial agreement.” This was a reference to the ERDA mineral agreement into which the two levels of government contributed a total of $10 million for mineral exploration in B.C over a 5-year period.

That expenditure was well below what was allocated for several smaller sectors of the provincial economy which caused an uproar in the mining community at the time. Lorne E. Sivertson, assistant deputy minister energy, mines and petroleum resources, told The Northern Miner that discussions will be held this March with the federal government on the ERDA agreement.

While admitting that no decision had been made to increase funding, he conceded that B.C. would be discussing what exactly federal participation would be in the event the funding agreement was increased. If it was, B.C. would have to match the federal expenditure.

Commenting on discussions with representatives of the federal government over B.C.’s offshore seabed, Mr Vander Zalm claimed they have been “dragging their feet since 1984,” noting the provincial court has already ruled in B.C’s favor. That ruling applies to the seabed between the mainland and Vancouver Island. Also in dispute is the seabed between the mainland and Queen Charlotte Islands. This is prospective ground for oil and gas exploration as opposed to mineral exploration, he explained.

In his keynote address to the association’s 75th annual meeting, the president of the B.C. & Yukon Chamber of Mines, Charles Aird, expressed industry concerns about the federal government’s comprehensive land claims policy. That policy is currently under review and he said a meeting with the government left the chamber with concerns that the “mining industry might be selectively burdened with compensatory legislation,” particularly in northern areas.

Tax reform was cited as another concern, especially the deduction of Canadian exploration expense and the depletion allowance for mineral exploration. Mr Aird said these constituted the “essence of the flow-through share concept” and their elimination would be harmful to producers but “devastating to the exploration side of the industry.”

Mr Aird noted that the provincial government’s 1986 FAME program (Financial Assistance to Mineral Exploration) was very popular, although limited in scope and duration. He also said the Wilderness Advisory report occupied much of the chamber’s attention, citing the report’s restrictions on access which were “unacceptable to the exploration community.”

A discussion paper from the ministry of forests also suggested that 40% of the province be deemed natural areas and managed as a recreation concept with restrictions on off-road vehicles. “We are continually seeing our resource base eroded by single-use land reserves and proposals,” he said. catch Beaufield N.T.

Financing has been arranged by Beaufield Resources which will provide a minimum of $1.9 million for exploration this year. QME Mineral Exploration and Co., a flow- through partnership, has agreed to provide the minimum amount in return for earning Beaufield shares on a flow-through share basis. The deal provides a maximum of $5 million for exploration purposes, Beaufield says.

The cash will fund exploration on four property groups held by the company in Onatrio and Quebec. These include a 4-claim group in the Lac Barry area of Quebec and extensive holdings in the Douay-Joutel area of Quebec, east of Casa Berardi. Another 879 claims are located in Noyelles, Berthiaume and Bergeres twps., Que. Beaufield will also explore four claim groups near Pickle Lake, Ont.