VANCOUVER – Funding in Budget 2015 will establish a Major Mines Permitting Office to improve the co-ordination of major mine permits across government, add staff to conduct more inspections and permit reviews, and maintain improved turnaround times for notice of work permits, Premier Christy Clark announced today.
“Up to 10 new mines are expected to proceed in the next few years and this new funding will make sure we are ready to support these projects and ensure the safety of this important industry as it continues to grow,” said Premier Christy Clark. “B.C.’s mineral exploration and mining industry is a great comeback story and today we have a significant opportunity to create thousands of jobs by opening new mines and expanding existing ones.”
Government has used contingency funding since 2011 to significantly increase geotechnical staff and inspections and improve permit turnaround times. The funding announced today will make these improvements permanent and create additional capacity to support the major mines permitting process.
The base budget of the ministry will be increased by about $6 million, a portion of which will go towards making current contingency funding permanent. Also, new permit fees for mines in B.C. are expected to raise an additional $3 million per year. The new fees will not be charged to exploration companies.
“Since 2011, we’ve made significant improvements to increase geotechnical inspections, hire additional staff and reduce the turnaround time for notice of work permits,” said Bill Bennett, Minister of Energy and Mines. “This investment will ensure we continue to improve our processes and support mining in British Columbia.”
“We welcome today’s announcement,” said Marcia Smith, senior vice president, Sustainability and External Affairs of Teck Resources Limited. “This increased funding will further strengthen B.C. permitting processes and help to support sustainable mining, job creation and economic growth in mining communities across the province.”
Premier Clark also announced that government will extend the $10-million mining flow-through share tax credit program to the end of 2015 to support investment in mining exploration. The credit helps junior exploration companies continue to make important resource discoveries by providing an incentive that can be used to raise additional investment revenue.
“Today’s announcement of the Major Mines Permitting Office demonstrates that the government continues to take steps each year to improve the permitting process for the industry,” said Gavin C. Dirom, president and CEO of the Association for Mineral Exploration British Columbia. “And we appreciate that permitting fees will not be applied to exploration activities because such activities do not generate revenue. We are also very pleased to see the continuation of the flow-through share program for 2015, which will encourage more companies to explore for minerals in the province.”
“MABC welcomes the announcement of additional permanent funding for the Ministry of Energy and Mines and the creation of the Major Mines Permitting Office,” said Karina Briño, president & CEO of the Mining Association of BC. “B.C.’s competitive advantage as a mining jurisdiction and the creation of jobs across the province are dependent on an effective mine permitting process. We look forward to continuing to work with government on the implementation of the new service delivery model.”
To further encourage exploration in B.C., Premier Clark also committed to extending the Province’s New Mine Allowance to 2020. The tax credit combines with other mineral tax provisions to support new mines and major expansions by allowing them to deduct 133% cent of their capital costs.
Exploration expenditures in British Columbia for 2014 are estimated to total $338 million. In 2013, exploration spending in B.C. represented over 21% of all exploration in Canada. This is a substantial increase from 2001 when the province accounted for just six per cent of Canada’s exploration expenditures.
Since June 2011, five new mines have opened in British Columbia, creating over 1,300 new jobs, and seven major mine expansions have been approved. British Columbia’s mining industry employs 30,000 workers with an average annual salary of $114,000, a significant increase from 2001 when 14,700 workers were employed at an average annual salary of $81,000.
Learn More:
Ministry of Energy and Mines: http://www.gov.bc.ca/ener/
The Association for Mineral Exploration B.C.: http://www.amebc.ca/
Mining Association of BC: http://www.mining.bc.ca/
Teck Resources Limited: https://www.teck.com/
A backgrounder follows.
Media Contacts:
Sam Oliphant
Press Secretary
Office of the Premier
250 952-7252
Jake Jacobs
Media Relations
Ministry of Energy and Mines
250 952-0628
BACKGROUNDER
New funding to support mining in B.C.
Mining Division Funding
This past year, base funding to the Mines and Mineral Resources division of the Ministry of Energy and Mines totalled $11.1 million. In addition, approximately $5 million has been provided annually since 2011/12 in contingencies funding.
Next year, subject to the approval of the Legislature, base funding will be increase by about $6 million to $17.1 million and permit fees under the Mines Act are expected to raise an additional $3 million. A portion of the increase in base funding will replace existing contingency funding.
This will increase overall spending authority for the Mines and Mineral Resources division to $20.1 million.
Permit Fees
The funding increase will be provided, in part, through new permitting fees charged to mines. These fees will not be applied to exploration companies as they do not generate revenue.
The fees are expected to generate $3 million a year in revenue.
Fees for placer mines, gravel pits and quarries will range from $4,000 to $32,000 depending on the size of the operation.
Fees for mineral and coal mines will range from $10,000 for a simple permit application to $125,000 for a complex application that requires the establishment of a Mine Review Committee.
Inspections
Since 2011, government has taken significant steps to increase the number of geotechnical inspectors and inspections.
The number of geotechnical inspectors has increased from three to seven (including contractors).
The number of geotechnical inspections has increased to an average of over 30 per year during the past three years compared to an average of 20% from 2002 to 2011.
The new funding will add staff to further increase the number of inspections conducted per year.
BC Mining Flow-Through Share Tax Credit
Government will extend the BC mining flow-through share tax credit through 2015.
The credit provides an additional incentive for raising revenues for mining exploration in British Columbia.
Offering flow-through shares can help companies fund resource exploration.
Companies can transfer unused income tax deductions to their investors through a non-refundable 20% tax credit
Government is projecting the BC mining flow-through share tax credit to be approximately $10 million this year.
New Mine Allowance Tax Credit
Government will extend the new mine allowance tax credit through to 2020.
The credit provides an additional incentive for raising revenues for mining exploration in British Columbia.
The new mine allowance combines with other mineral tax provisions to allow new mines and major expansions to deduct 133% of their capital costs.
Exploration Spending Per Year
Exploration expenditures in British Columbia for 2014 are estimated to total $338 million.
In 2013, exploration spending in B.C. represented over 21% of all exploration in Canada.
This is a substantial increase from 2001 when the province accounted for just 6% of Canada’s exploration expenditures.
Exploration Spending (B.C. Provincial Geoscience Statistics)
2014: $338 million
2013: $476 million
2012: $680 million
2011: $463 million
2010: $322 million
2009: $154 million
2008: $367 million
2007: $416 million
2006: $265 million
2005: $220 million
2004: $130 million
2003: $55 million
2002: $40 million
2001: $32 million
2000: $30 million
1999: $25 million
1998: $38 million
1997: $80 million
1996: $105 million
1995: $78 million
1994: $98 million
Media Contacts:
Sam Oliphant
Press Secretary
Office of the Premier
250 952-7252
Jake Jacobs
Media Relations
Ministry of Energy and Mines
250 952-0628