Commentary: BC a model for attracting investment and building partnerships with aboriginal communities

A mill under construction at New Gold's New Afton gold mine near Kamloops, British Columbia in 2011, which reached commercial production in 2012. Source: New GoldA mill under construction at New Gold's New Afton gold mine near Kamloops, British Columbia in 2011, which reached commercial production in 2012. Credit: New Gold.

It is with some nostalgia that we look back at 2012, a year of pride and celebration for the Association for Mineral Exploration British Columbia (AME BC). We wrapped up a year of special initiatives to mark our association’s 100th anniversary with a gala event on Nov. 27 in Vancouver, where more than 500 industry professionals and leaders were on hand to toast B.C.’s vibrant mineral exploration and development industry. We also released Into the Mountains, our special anniversary book commemorating the first 100 years of our B.C.-based association and industry.

Today, B.C.’s modern mineral exploration and development industry is leading the way when it comes to attracting investment and building business partnerships with local and aboriginal communities. Opportunities to co-operate, create certainty and share the benefits from responsible mineral development are significant and important for industry, First Nations, government and every citizen in B.C.

According to the B.C. government, over 335 Notice of Work permits received approval for exploration in 2012. Importantly, the government is also reviewing regulations to exempt low-risk exploration and mining activities from requiring Mines Act permits. Furthermore, the federal government and B.C. are working to develop a single, effective environmental assessment process, which industry fully supports, assuming environmental standards are stringent, fair and science-based. AME BC members were also pleased to see that the B.C. government had moved their regional geologists back into the Ministry of Energy, Mines and Natural Gas, which is an acknowledgement of geologists and their important role in government.

Although the industry is challenged by permitting issues and the slow pace of the consultation process between First Nations and the government, a growing number of agreements and business partnerships have been struck, and serve as models for other jurisdictions. Outsiders are turning to us here in B.C. for advice on respecting aboriginal interests, addressing land-use conflicts, improving socio-economic conditions through sharing resource development revenues and building capacity in local communities.

Examples include agreements between the B.C. government and the McLeod Lake Indian Band and the Nak’azdli First Nation to share tax revenues generated by Thompson Creek Metals’ Mount Milligan copper-gold mine northwest of Prince George. The government has a similar agreement with the Stk’emlupsemc community of the Secwepemc Nation for New Gold’s New Afton gold mine near Kamloops. We expect to see more of these agreements announced in 2013, and the AME BC fully supports the certainty and shared prosperity that these agreements bring to everyone.

It’s why the B.C. mineral exploration and development sector works proactively to build relationships with aboriginal communities, leaders and organizations. Specifically, AME BC has taken the lead and engaged in positive and mutually respectful discussions with partners from the Industry Council for Aboriginal Business, B.C. Aboriginal Mine Training Association and the B.C. First Nations Energy and Mining Council. For the first time ever, these partners are working with AME BC to host an Aboriginal Pavilion at the upcoming Mineral Exploration Roundup 2013 conference in Vancouver.

These strengthening partnerships provide mineral exploration and development companies with the certainty they require to operate, which reduces risk and helps attract investment to B.C. from around the world. B.C.’s exploration expenditures for 2012 are expected to reach record-breaking territory thanks to investment in advanced exploration projects, such as New Gold’s Blackwater, Pretium Resources’ Brucejack and Seabridge Gold’s KSM, along with several coal projects. B.C.’s share of the total investment in mineral exploration in Canada is also expected to show an increase when the final numbers are released soon. And today, thousands of people are working at hundreds of exploration projects located near communities throughout every region of the province.

As we settle into 2013, the outlook for one of B.C.’s most important industries looks bright. This is despite tough venture market conditions, as a result of the volatile global economy. In fact, it’s these tough times that highlight the importance of having a competitive policy and investment climate. As explorers and developers competing internationally for investment, we know that the best indicator of mineral exploration and development is seeing a new mine open. The widely held dream of so many explorers of moving a prospective discovery through exploration, permitting and into construction and production is becoming a reality in B.C. Take, for example, the opening of the Copper Mountain copper-gold mine near Princeton, and new mines under construction, such as Imperial Metals’ Red Chris mine in northwestern B.C. These new projects provide a major boost to the B.C. economy, which translates into improved health care and education for everyone — a fact not lost to the leaders of B.C.’s provincial parties in an election year.

Still, the industry, First Nations and government should not lose sight of the need to find the next new mineable deposit, which can only happen through geoscience and exploration. If we’ve learned anything from mineral exploration cycles, it’s that we can’t stop investing in the timely development of B.C.’s mineral resources to coincide with worldwide demand. And it’s important to remember that while explorers require access to large areas to search for elusive deposits, actual exploration and mining in B.C. has used much less than 1% of the provincial land base, or an area smaller than Greater Victoria (540 sq. km). Great mineral and coal resources occur in B.C., and responsible explorers and developers from around the globe know this is true. B.C. is under-explored and vast, covering over 944,700 sq. km — or an area larger than Texas, or France and Germany combined.

Put simply, if we can’t grow it, we need to explore and mine it. Fortunately, many urban, rural and aboriginal communities in B.C. are progressively embracing mineral exploration and development as a means to build capacity, improve training, provide jobs and deliver financial security.

Together, we must keep creating more business partnerships and agreements built on mutual understanding, respect and trust. If we can do this, we will see investment flow to B.C., and there will be shared prosperity from mineral exploration and development for generations to come.

— Gavin C. Dirom is president & CEO of the Association for Mineral Exploration British Columbia, which represents almost 5,000 individual and corporate members and is the predominant voice of mineral exploration and development in B.C. AME BC’s conference, Mineral Exploration Roundup 2013, is being held from Jan. 28 to 31 at the Westin Bayshore in Vancouver. Visit www.amebc.ca/roundup for more information.

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