LETTERS B.C. supports mining industry

Your recent article “Where to Explore” (March issue) claimed that British Columbia was among the least supportive of the provinces when it comes to assisting mineral development. Nothing could be farther from the truth. Articles such as this, when published in your influential journal, can cause considerable harm; you have a responsibility to ensure their accuracy. The story on which the article is based did not take into account regional differences in the geological endowment of the provinces. Further, it used broad averages in calculating comparative mining costs, for example infrastructure costs, which may vary dramatically with a province. Since the study was published, two new gold mines, Blackdome and Mascot’s Nickel Plate, have opened in British Columbia and several others are nearing a production decision. The investment climate here cannot be too bad] However, I was most disturbed by the suggestion that this province does not support mineral sector development. While it is true that we cannot afford to lavish funds upon the industry, we have hardly been inactive.

* Property taxes were slashed in 1985 and the Corporate Capital Tax was abolished.

* The provincial corporate tax rate was reduced to 14% from 16% in 1986.

* The 1987 budget exempted grinding media and explosives from sales tax and is reducing the general sales tax rate to 5% from 7%,

* A new Mineral Development Agreement with Ottawa was signed in 1985 and the Financial Assistance for Mineral Exploration (fame) program of exploration grants introduced in 1986 was continued this year. Government spending on geoscience was also increased this year.

* The Critical Industries Act, introduced in 1985, has provided valuable assistance to the mining industry, enabling several mines to reopen or maintain operations.

* The province is lending funds for construction of an access road to the Toodoggone gold camp and is assisting other companies with road feasibility studies.

Last year my government asked the industry to establish a task force to provide recommendations on mineral policy. Some of these recommendations were reflected in the 1987 budget; others will follow. While I can appreciate that the mining industry feels that even more is needed, we simply cannot afford expensive programs. The Northern Miner, as a long- standing exponent of fiscal responsibility in government, should recognize this. To suggest that our approach constitutes lack of support for the industry is quite astonishing. The Hon. Jack Davis, B.C. Minister of Energy, Mines and Petroleum Resources.