For Immediate Release
February 20, 2018
Mining Association of BC Comments on Budget 2018
VICTORIA, BC – MABC acknowledges the government’s commitment in Budget 2018 to begin to address the competitiveness challenge of BC’s mining sector created by the carbon tax through the creation of a new incentive and investment program. This program will be funded by the carbon tax increases in excess of the current $30 per tonne tax.
While BC’s carbon tax has provided a price signal to incentivize emissions reductions over the last 10 years, it has also increased the cost of production for the BC mining industry. None of British Columbia’s global mining competitors pay a comparably stringent carbon price, if any carbon price at all. BC’s mining companies sell their products on world markets, at globally established prices, and therefore are unable to pass on additional costs. BC mines must also directly absorb the carbon tax costs passed on by other sectors providing service to the industry. The carbon tax has been a competitiveness challenge for BC’s mining industry since its inception.
B.C.’s mining industry can play a critical role in contributing to Canada’s transition to a lower-carbon economy by contributing to the additional copper needed for electric cars compared to conventional cars, and to the steelmaking coal required to build public transit infrastructure and wind turbines. While the mining industry appreciates the commitment to address the competitiveness challenge created by the carbon tax above $30 per tonne, in order for BC’s mining industry to truly be competitive, program design needs to include the entire amount of carbon tax paid by industry.
An additional competitiveness concern to the mining industry in Budget 2018 is the implementation of a new employer health tax that will increase the operating expense of BC mining companies, beginning in 2019. This new tax creates revenue for government in excess of what has previously been paid by many employers on behalf of their employees for Medical Services Plan (MSP) premiums. Of particular concern is that many employers will pay both MSP premiums and the new employer health tax during calendar 2019.
“We acknowledge the government’s commitment to begin address the competitiveness of BC’s mining industry with the creation of a clean growth incentive and investment program, and look forward to working with the government and other stakeholders on the program’s design,” said Bryan Cox, President & CEO of MABC. “A strong and thriving BC mining industry can continue to play a pivotal leadership role in Canada’s clean tech future, for the benefit of BC’s families and workers, but only if the competitiveness of the industry in British Columbia is fully addressed, including ensuring a competitive tax and regulatory system.”
The Mining Association of British Columbia (MABC) is the voice of mining in BC, representing operating coal, metal and industrial mineral producers in the province. Our mandate is to support a strong and thriving mining industry that creates opportunities and wealth for all British Columbians. In 2016, the mining industry in BC contributed $8.7 billion to the BC economy and $650 million in direct payments to government, and 30,000 jobs through direct and indirect employment.
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.
