Official Conference Opening – Hon. Randy Hawes Presentation

INTRODUCTIONS

• Good morning and thank you for the kind introduction and warm welcome.
• Thank you also to the Coast Salish peoples whose traditional territory we are on today.
• It’s a pleasure to be here at Mineral Exploration Round Up 2010.
• This is my first time at Round Up as Minister of State for Mining, and this is an exciting time to be involved.
• The Ministry of Energy Mines and Petroleum Resources is proud to be a founding partner and ongoing supporter of Round Up.
• Congratulations to AME BC for hosting and organizing this exciting and informative week.
• The theme of this year’s Round Up is ‘Go for the Gold and Everything Else,’ and I think it’s fitting. In a few weeks, athletes from around the world will be converging right here in Vancouver for the 2010 Olympics, ‘going for the gold.’
• With commodity prices on the way up, the B.C. mining industry will be doing the same. Going for the gold and everything else, as mining helps lead the recovery of the provincial economy.
• Like our athletes, mineral explorers and miners are known for their drive and endurance and I’m confident we’ll see success for both our mining industry and our Canadian Olympic competitors.

ECONOMIC TURNAROUND AND MINING

• The economic turnaround and recovery in world economies has led to higher demand for minerals, with strong copper, coal and gold prices trending upwards throughout 2008.
• Our B.C. operating mines are currently profitable, expected mineral tax revenues are on the rise and direct employment is growing.
• World-class geology, combined with our fiscal framework and regulatory policies, make this province an attractive place to invest in exploration and mining.
• We have mines that are set to expand; and mines that have extended their operational lives. We also could have several major new mines commencing operations by 2013.
• Like I said, this is an exciting time for mining and an exciting time for B.C.
• And we are working hard to keep the positive momentum going.
• There were 88 significant exploration projects in the province in 2009 despite the global financial crisis. 
•  Mineral exploration spending in 2009 was $154 million. This is the 6th highest provincial expenditure in the past 20 years, but down substantially from the $367 million in 2008.
• Exploration activity rallied late in the year as a result of very high copper and gold prices. This is another reason to be optimistic for 2010.
• At year end, there were 30 mine development applications for proposed mines and 6 mine development projects that are fully permitted.
• At New Afton and Copper Mountain, mine construction is underway as we anticipate what will be British Columbia’s next major metal mine.
• And just last week, Taseko Mines Limited received a provincial environmental assessment certificate for its proposed Prosperity Gold-Copper Project.
• The project is expected to contribute approximately $340 million to the provincial GDP annually, and $400 million in provincial revenue and $43 million to local and regional government over the life of the project. 
• Our overview of exploration and mining are available at the back of the room here (Minister can showcase the hard copies here) and online on the British Columbia Geological Survey’s web page.

WHAT GOVERNMENT IS DOING

• The Province has implemented new policies that will help keep mining strong in B.C., generating new investment and ultimately creating more, better-paid, long-term and stable jobs for British Columbians.
• The B.C government has conducted a review of the mineral and placer claim acquisition fee, exploration work requirements, lease acquisition and fees and related issues and is reviewing this with AME BC.
• We’re continuing to discuss this consultation and will modernize the fee structures and work obligations with industry and sector associations.
• In the September Budget update, it was announced that the expiry date for the B.C. mining flow-through share tax credit has been extended to December 31, 2010.
• We have implemented an exemption from the provincial sales tax for machinery and equipment.
• We have eliminated the corporate capital tax. 
• We have introduced a reduction to the B.C. corporate income tax rate.
• We have reduced personal income taxes by approximately 25 per cent.
• And we continue to press the federal government for greater regulatory harmonization.
• The mining industry will see more benefits with the harmonized sales tax coming in July 2010.
• We expect the mining and oil and gas industries to save about $80 million with the HST due to reduced mine operating and capital costs.
• Mining will benefit from savings in areas such as recovery of indirect sales tax payments, reduced compliance and other administrative costs.
• According to leading economists, harmonizing the PST and GST into one tax is the single biggest initiative that British Columbia can implement to stimulate the economy.
• The HST is a good move for mining and the right move for B.C.

JOBS

• Mining jobs are the highest paid jobs in the resource sector, averaging over $112,800, including benefits in 2008. 
• It is one of British Columbia’s most vital sectors, and a strong driver of our economy.
• There are more than 28,000 people employed in mining and mineral sector-related jobs in over 50 communities across our province.
• Over half of Canadian exploration and mining companies are based right here in B.C.
• Mining is now a $6 billion industry for this province.
• Our government wants to encourage more investment in mining and make B.C. even more competitive.

B.C. AS EXPORTER

• Our port connections make B.C. an ideal exporter of mineral resources.
• We’re home to Canada’s largest and most diversified port - the Port of Vancouver.
• And two of our ports - Vancouver and Prince Rupert - are closer to China than any other ports in North America.
• In fact, sailing times from Prince Rupert to China are 30 hours less than from any other West Coast port in North America.
• B.C.’s rail systems provide cost-effective transportation for moving coal and minerals from the B.C. interior to the coast for export.
• And there are tens of thousands of kilometres of roads that support mining activities throughout the province.
• We also remain committed to moving forward with the Northwest Transmission Line.
• The federal government has recently announced $130 million for the project through the Green Infrastructure Fund.
• Electrifying highway 37 could stimulate thousands of jobs and billions of dollars worth of economic activity for British Columbia.
• This project will take advantage of the vast mineral potential of that region and continue to develop the infrastructure of the northwest.
• It will also help to realize the potential of the Port of Stewart.

ASIAN INVESTMENT

• Our rich natural resources combined with attractive business climate and well developed infrastructure have lead to some huge investments in the province from Asian companies.
• Asian companies are investing in British Columbia companies and resources in anticipation of their needs for mineral resources to sustain their economies.
• With the economy on the rise, we saw more than  $2 billion pouring in: including $1.74 billion to Teck Resources from the China Investment Corp. and $56.5 million to Copper Mountain Mining from Mitsubishi of Japan. 

FIRST NATIONS

• Building relationships with First Nations is an incredibly important part of the long-term future of mining in our province.
• It’s these relationships that enable First Nation communities to participate in meaningful partnerships with government and industry that build trust, respect and certainty.
• The Province has been working to create a New Relationship with First Nations founded on the principles of mutual respect, recognition and reconciliation of Aboriginal rights.
• We are proud to be the first Canadian province to implement a revenue sharing approach with First Nations.
• This is a significant step forward for new mine development in British Columbia.

CONCLUSION

• Now -- more than ever -- we need to work together to build a strong, sustainable mining industry.
• Mines create jobs, generate taxes, support infrastructure and generate new economic activity throughout British Columbia.
• I’m excited for the future of exploration and mining in B.C. The positive outlook for mining is good news for the rest of the province.
• We have a lot to look forward to as we go for the gold and I look forward to B.C.’s first major metal mine opening since 1998.
• Thank you and before I conclude, I would like to present Gavin Dirom and all of AME BC with this proclamation announcing Mineral Exploration week in B.C. Jan. 17 to 23, 2010.