For Immediate Release
February 22, 2022
Provincial Budget 2022 misses opportunity to lead on climate and low-carbon mining
VICTORIA, BC – The lack of urgent action in Budget 2022 to address longstanding inequities within the application of British Columbia’s carbon tax for trade exposed industries puts BC jobs at risk and may encourage global mining investment to migrate to jurisdictions with higher GHG emission profiles, says the Mining Association of BC (MABC).
Experts agree the global transition to a low-carbon future requires a significant increase in the production of minerals and metals produced in British Columbia. BC has among the highest carbon taxes in the world, scheduled to rise from $45 to $50 per tCO2e on April 1, 2022, and set to rise further. Yet BC is the only jurisdiction in the world that does not provide meaningful carbon pricing protection for its mining sector. As an export industry, mining is a price-taker in world markets and can’t pass on these higher costs onto customers. BC mines also have among the lowest greenhouse gas emissions in the world.
Budget 2022 did enhance the CleanBC Program for Industry with an additional $111 million for the CleanBC Industry fund, but this funding is targeted to the 2024/25 fiscal year, two years from now, and won’t provide price parity in the near term. Government is launching an industrial carbon taxation review this year, and MABC strongly urges the provincial government to adjust BC’s carbon pricing so trade exposed sectors can compete fairly with jurisdictions that don’t pay a carbon tax or don’t pay enough.
“We have an outsized opportunity in BC to provide the minerals and metals needed in the global fight against climate change while creating significant benefits for workers, local and Indigenous communities and revenue needed to fund public services,” said Michael Goehring, President and CEO of MABC. “But if the provincial government doesn’t change the application of the carbon tax so it is on par with other Canadian and global jurisdictions, capital investment and jobs will migrate to jurisdictions with less stringent environmental protection and higher emissions.”
BC has 16 major mines and two smelters, which support more than 35,000 stable, high-paying jobs in every region of the province and provided $2.65 billion in tax revenue to all levels of government in 2019. BC’s mines and smelters also support 3,700 small, medium, and Indigenous businesses in 215 BC communities through an annual spend of nearly $3 billion on goods and services.
There are seven major new mines or mine expansions expected to make final investment decisions in the next 12-24 months, collectively representing $4.2 billion in capital investment, more than 6,000 direct jobs and estimated annual tax revenue for governments of nearly $450 million once in operation.
“MABC supports the carbon tax and collective efforts to combat climate change. Our industry has taken steps to be among the least GHG-intensive mines in the world, and continues to invest in emissions-reducing technologies,” said Goehring. “Bringing BC’s carbon tax into line with other Canadian and global mining jurisdictions will enable BC’s mines to reduce emissions further and faster, compete more fairly in global markets, and fulfil our potential as a responsible supplier of the low carbon minerals and metals the world needs to reach its Paris Agreement targets.”
The Climate Solutions Council has previously also advised the government to “address the competitiveness challenges faced by emissions-intensive, trade-exposed industries while supporting emissions reductions.”
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About the Mining Association of British Columbia
MABC is the voice of British Columbia’s mineral and metal producers, steelmaking coal, smelters and advanced development companies. Our industry benefits all British Columbians and supports more than 35,000 jobs and over 3,700 small, medium and indigenous affiliated businesses in every corner of the province through an annual spend of nearly $3 billion on goods and services. Our members’ products have among the lowest carbon footprints globally and are helping the world transition to a cleaner, low-carbon future; safely and responsibly.
For more information:
Matt MacInnis
Vice President, Communications
mmacinnis@katana.work
(778) 628-1703
What makes BC such an attractive place for mining investment and development?
BC is uniquely positioned to play a leading role in providing Canada’s allies and partners with the minerals, metals, and steelmaking coal they need.
British Columbia has or produces sixteen of the fifty minerals the U.S. has identified as being vital to their national interest. Over half – are found or produced in British Columbia, including: aluminum, copper, germanium, gallium, indium, nickel, and many others.
What is the Mining Association of British Columbia?
The Mining Association of British Columbia (MABC) is the voice of British Columbia’s steelmaking coal, metal and mineral producers, smelters, and advanced development companies. Our industry benefits all British Columbians and supports more than 56,000 jobs, $27 billion in economic activity for British Columbians, and nearly 4,000 small, medium, and Indigenous affiliated businesses in every corner of our province.
Our members’ products have among the lowest carbon footprints globally and are helping Canada and our allies meet our decarbonization, technology, and national security objectives; safely and responsibly.
How does BC compare with other mining jurisdictions around the world when it comes to regulation, innovation, and investment opportunities?
British Columbia is recognized globally for its rigorous regulation and environmental and social responsibility standards.
The provincial government’s move towards accelerating permitting timelines and creating clearer regulatory pathways for mining and critical mineral projects also are helping make BC a very strong global mining jurisdiction.
BC is competitive, but we are not the only mining game in town when it comes to global investors. Jurisdictions that combine strong geology with fast, predictable permitting and innovation incentives are capturing the largest share of new investment. BC has the ingredients to lead — but must continue strengthening regulatory and permitting efficiency, infrastructure planning, and investment certainty to fully realize its potential.
BC can be a global leader in responsible, innovative, and future‑focused mining. The decisions made now will determine whether the province secures that leadership position in the decade ahead.
BC is uniquely positioned to play a central role in providing Canada’s allies and partners with the minerals and metals they need.
What economic impact does the mining industry have on British Columbia, including employment, First Nations partnerships, and local communities?
There are 31 proposed mining projects in BC mining that could deliver more than $90 billion in economic opportunity for Canada.
Mining is the biggest jobs and economic opportunity BC will see in a lifetime. Mining can secure our economic future and long-term prosperity.
Mining is already a cornerstone of British Columbia’s economy. The next generation of proposed mining projects presents major economic opportunities for BC.
MABC’s Mining and Metro Vancouver Economic Impact Study identifies 31 proposed new and extended mines across the province, including 20 critical mineral projects, seven precious metal projects, and four steelmaking coal projects.
Construction and development of these mines are expected to generate:
– $90+ billion in total economic activity
– $40+ billion in GDP
– $24 billion in pay cheques
– 286,000+ well-paying jobs
– $12 billion in government revenues
Which commodity is in most demand right now and which province has the most of it?
Right now, the commodities driving the greatest opportunities in BC are copper, gold, and critical minerals — especially molybdenum, battery metals like lithium, and rare earth elements.
BC is Canada’s leading producer of copper and steelmaking coal, second largest producer of silver, and only producer of molybdenum.
What role can BC’s mining industry play in boosting our economy?
Mining supports more than 56,000 jobs and generates billions in economic activity, while creating opportunities for thousands of small, medium, and First Nations businesses across our province.
At a time of growing economic uncertainty, mining can secure our economic future by creating jobs that strengthen communities in every region of BC.
What does BC’s mining sector offer Canada and its allies, and why is developing these resources such an important opportunity for the future?
BC’s mining sector has the critical minerals, precious metals and steelmaking coal that Canada and our allies need. Demand for these strategic resources is growing, and we are ready to deliver.
Developing our resources for new markets is a nation-building opportunity that will grow our economy, protect our sovereignty, and make BC and Canada stronger.
Why is now a great time to consider a career in BC’s mining industry?
BC’s mining industry is hiring.
In fact, with the growth of the sector, the industry needs to hire 35,000 workers over the next 10 years.
That means you can be part of a new generation of British Columbians who can take advantage of skilled, high-paying jobs in every region of the province.
