Over the past year or so, we have bashed the provincial government of British Columbia for some of its incredibly knuckleheaded decisions. The decision, last year, to expropriate the Windy Craggy copper deposit, so that the Tatshenshini-Alsek region could host a new provincial park, was definitely the low point in this government’s handling of mining issues. Not only did Premier Michael Harcourt kowtow to environmental outsiders, but he ignored the wishes and needs of the province’s aboriginals, who were not so much as consulted about the decision. However, we said our piece then, and since a nod’s as good as a wink to a blind horse, we let it go at that.
But the powers-that-be in Victoria must soon address the issue of compensation for the owners of Windy Craggy. The government seems determined to drag out this issue for as long as possible. It shouldn’t. Thousands of investors are awaiting a decision.
Now despite all this, we have, of late, noted a change in the government’s approach. It seems finally to have recognized mine development as a legitimate economic activity, worthy of support and encouragement. We’ve learned of this change of attitude from what we consider a reliable source — people in the mining industry who are trying to develop mines in that province.
For example, Vic Jutronich, president of Wheaton River Minerals, has nothing but good things to say about the province’s handling of the environmental permitting process on a project his company owns in northern British Columbia. North American Metals, an 81.4%-owned subsidiary of Wheaton, is currently applying for permits for a heap-leaching operation at its Golden Bear mine site.
The company is planning an initial 350,000-tonne leach and is under the gun to land the permits in time to construct the pads and leach plant, as well as mine and stack the ore, so that leaching can start before winter. Jutronich expects to receive the permits by the end of this month — which is pretty quick, considering the zone was discovered only last year. Jutronich is quick to point out that the government is being very thorough and is not simply “rubber stamping” the project permits.
His positive comments are echoed by Dal Brynelsen, president of Pacific Vangold Mines. Brynelsen is very pleased with the government’s handling of a 10,000-ton bulk sample permit for his company’s Iron Colt gold joint venture with International Silver Ridge Resources, near Rossland, B.C. “We essentially got our permits within four days of meeting all requirements,” he told The Northern Miner recently.
There have even been positive comments about the province’s stance on new mine developments.
Earlier this year Pegasus Gold Mines said the British Columbia government supports development of the Kemess South project in the north-central area of the province.
Pegasus was investigating the acquisition of El Condor Resources, 60% owner of Kemess South, but elected not to proceed with the takeover after concluding that it did not meet the company’s investment criteria. Make no mistake: land use issues and rising government-mandated costs in the province are a major headache for producers and would-be producers alike. Windy Craggy is a blight on this government and it will not go away. But at least there is a glimmer of hope that Harcourt’s government is taking a slightly more balanced approach to mining.
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