Miners spend $500M in 2007
January 16, 2008
MINING SPENDING surpassed $500 million in the region last year, placing the industry at the forefront of economic development in the Northwest.
“It’s pretty exciting news for the region and for the city,” said Terrace Economic Development Authority (TEDA) economic development officer Sam Harling last week. “It certainly shows the importance mining has taken on.”
All told, companies spent $170 million on exploration, more than the $128 million spent in 2006 and substantially more than the $100 million spent in 2005.
And from practically zero in 2006, companies spent $385 million in 2007 on actual mine construction and development.
“Of course, a lot of that $385 million came from Galore Creek but there are other projects that resulted in spending,” said Harling.
Those other projects include work to revive the Tulsequah Chief copper-lead-zinc mine south of Atlin which has been closed for decades, the Swamp Point gravel quarry on the coast between Kincolith and Stewart and Table Mountain, a small gold mine run by Cusac Resources right near Hwy37 North as it nears the Yukon border.
Although the Galore Creek copper and gold mine, the largest of the developments, was put on hold late last year when its originally-estimated $2 billion cost ballooned to $5 billion barely five months into construction, Harling said the momentum being created by exploration will lead to more producing properties.
“This is a very strong industry right now in the region and there’s no reason why it can’t continue,” he said.
“When you talk about mining and Terrace, people now know where Terrace is. Terrace is open for business when it comes to mineral exploration and mining,” Harling added.
Closer to home, BRM Resources, a junior Vancouver company, has been conducting an aggressive search for molybdenum on property just above Usk.
“The dollar value of what’s going on in the industry is certainly welcome when you consider what has happened to the forest industry,” Harling said.
He hopes the strong figures will help convince energy and mines minister Richard Neufeld to reverse a decision he made late last year to suspend work on providing power up north past Meziadin Junction.
Neufeld shelved the $400 million Northwest Transmission Line project barely a day after Galore Creek owners NovaGold Resources and Teck Cominco made their own suspension announcement.
Galore Creek was going to pay $158 million of the line’s cost and, to date, was the line’s only customer.
“What we’ve been saying all along is that the province should continue with the permitting [on the line],” said Harling.
“That power will be needed eventually and, as you can see, with the strength of the exploration numbers, there are going to be properties that will need that power,” he added.
Harling’s figures came from provincial mines ministry officials who regularly track regional activity.
Generally speaking, the mining industry says that one viable mine will result from every $350 million the industry spends on exploration and development.
Terrace Standard
