The Re-emergence of British Columbia Mining

British Columbia is extremely well-endowed with resources. The province hosts a wealth of mineral deposits, encompassing precious and base metals, as well as coal and industrial minerals. For a couple of decades, from the 1950s through the early 1970s, all the major mining companies were actively exploring in the province, with several of them operating mines.

Support From the Province

One of the most important improvements in BC from years gone by is the supportive nature of the provincial government. BC hasn’t seen a new mine built since 1997 despite favorable geology and an abundance of known deposits.  Mine development projects were stalled by soaring construction costs before the global financial crisis. While cost estimates have moderated considerably with the slowdown in global mining construction, companies faced difficulties in securing financing. Those projects that had access to funding were trapped in a permitting process filled with red tape. 

The government is now encouraging new mines by simplifying the permitting process. Timelines on approvals ensure that applications don’t get stalled.

The first major metal mine in over a decade is now under construction .A half dozen other projects are in advanced stage planning to begin development in the near future.

The BC and Federal governments have also committed to investing $380 million in the construction of the Northwest Powerline along Highway 37.  The northwest region of the province hosts a wealth of mineral deposits. Bringing low-cost power within reach of those projects will provide a huge boost to their economic viability.

The Federal flow-through tax benefit program is augmented with a provincial tax credit, creating a “super flow-through” benefit to investors. For those not familiar with flow-through shares: Investors in specified mining company financings can get a tax write-off equal to the amount invested. If the investor is resident in BC and the company invests the proceeds in BC, the investor gains an additional credit against BC income taxes.

With attractive tax policies, reasonable mining regulations, high quality and accessible geological data and attractive exploration incentives, the province is now one of the most favorable places to explore.  The BC government is actively encouraging the mining industry to explore and develop in the province. That was not always the case, and it will take time for investors to overcome the legacy of the past. Click here to read more about the Re-emergence of the BC mining industry

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