For Immediate Release
September 11, 2017
Mining Association of BC Comments on Budget 2017
The Mining Association of BC (MABC) commends government’s commitment to reduce the PST on electricity by 50% in Fall 2017 and fully eliminate by April 2019, as confirmed in today’s 2017/18 Budget Update. Electricity represents a significant input cost for the operation of mines in B.C., and at most sites, it is the second largest expense.
“Reducing the PST on electricity by 50% in Fall 2017 and committing to the full elimination of the tax by April 2019 is a positive first step toward improving B.C.’s global competitiveness, which in turn attracts investment and sustains and creates jobs in communities across B.C.,” said Bryan Cox, President and CEO of MABC. “We look forward to working with government to continue efforts to improve industry competitiveness to build strong communities across the province.”
Government made several other relevant announcements to the mining sector, including: an increase to the corporate tax rate from 11% to 12%; the introduction of an Innovation Commissioner; the introduction of an Emerging Economy Task Force; and an increase to the Carbon Tax from $30/tonne to $35/tonne.
B.C.’s mining industry plays a critical role in contributing to Canada’s transition to a lower-carbon economy – from the additional copper needed for electric cars compared to conventional cars, to the steelmaking coal required to build public transit infrastructure and wind turbines. A strong and thriving B.C. mining industry can continue to play a pivotal leadership role in Canada’s lower-carbon future, but only if the competitiveness of the industry in British Columbia is fully addressed.
“We look forward to working with the government to ensure the competitiveness of B.C’s trade exposed industries, like mining,” continued Cox. “By taking action to enhance the competitiveness of the mining industry, the government can support this foundational industry that contributes almost $9 Billion to the provincial economy and thousands of family-supporting jobs in every region of the province, all while reducing emissions and meeting climate change targets.”
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For more information:
Bryan Cox, President and CEO
604 681-4321, Ext. 120
BACKGROUNDER – CARBON PRICING
Mines and smelters in British Columbia sell their products in world markets, at globally established prices. This market design makes mining and smelting operations unable to pass on additional costs to their customers. Importantly, British Columbia mining companies are among the lowest GHG emission-intensity miners in the world, in large part due to the innovation in our sector and extensive use of clean energy sources.
While BC’s carbon tax provides a price signal that incentivizes GHG emissions reductions, it also increases the cost of production. British Columbia’s global mining competitors do not pay a comparably stringent carbon price, if any carbon price at all. As an industry unable to pass on incremental costs and one that already operates with low-emissions, the additional cost of the carbon tax – which none of our major competitors incur – is eroding the competitiveness of B.C. industry. This consequently results in investment and carbon leakage – where reduced production in BC simply shifts to higher emitting jurisdictions who don’t face comparable carbon cost pressures.
Well-designed carbon pricing policies result in cost-effective GHG emissions reductions while protecting against investment and carbon leakage. To maintain economic competitiveness in the mining and broader natural resource sectors, a mechanism that balances incentivizing emissions reductions, while working to maintain the competitiveness of trade exposed industries in British Columbia must be introduced. It is important that the mechanism be based on the following principles: a recognition of the differences in global carbon pricing stringency; transparency; consistency; flexibility; incentives to reduce emissions; empirical validation; and simplicity of administration.
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.
