Fees levied on BC Mining Industry

Nicole Halseth
News Editor | ote-news@unbc.ca

ew fees are set to be imposed
Ns. the mining industry

by the BC government. Mines
Minister Bill Bennett explained
the decision to the BC legislature
on 27 February, claiming that
responsibility to bear costs for
better services should fall to the
mining industry. He explained
that this move “will give the
ministry an opportunity to bring a
few more resources in to improve
our performance.”

The mining industry is slightly
less than enthused about these
new fees, however. According to
the Globe and Mail, the sector has
responded by saying the move

is “punitive” and “warns it will
undermine already-fragile small-
scale mining companies.”

This move seems somewhat
incongruous with Bennett’s
previous actions towards

the mining sector. From his
influence, the BC government

“restored ministry resources

for services such as permit
approvals” only two years ago.
At the time, Bennett explained
that government cuts had stifled
economic growth in the province
by impeding resource sectors
like mining, forestry, and oil

and gas. The government is now
demanding the mining industry
pay for those services that were
restored two years ago.

The BC government defended its
decision in a discussion paper
released last month, claiming the
fees are needed to provide further
permit services. In the paper, the
government also claimed that
the restorations of 2011 were a
temporary measure, and current
economic conditions necessitate
amore long-term solution, which
these fees are hoped to provide.

In response, opposition NDP
critics claimed the move is “ill-
timed.” According to mining critic
Scott Fraser, “This new tax will

be felt more profoundly by the
smaller exploration companies,

placer miners and prospectors

- the backbone of the industry.”
Fraser also commented further
by saying “How much are mining
companies going to be hammered
by this new stealth tax?”

If fee levels remain at currently
proposed levels, ministry officials
claim it could bring in almost
$5.5-million a year for the
province.

These fees are set to begin
implementation in the fall of this
year. They could range from only
a few thousand dollars for the
processing of a work application,
to around $300,000 for large mine
permits or expansions,

President of the Chamber of
Mines for eastern BC, Jack Denny,
also had something to say on the
matter. He claims these fees may
actually make job creation more
difficult for smaller projects, as
they are already struggling with
expenses and a lack of capital,
and many of those who would be
paying these new fees struggled

substantially in 2013.

Ina statement, Denny said “I find
it difficult to believe that there
are many outside of government
who think the proposed fees

are anything but a cash grab.”

He elaborated by saying “While
there are some big development
projects ongoing, the exploration
boom is over. If the ministry
permitting staff cannot keep up
now ... the solution should be to
simplify the process rather than
punitive application of fees.”

This move follows the recent and
inflammatory decision to reject
the New Prosperity copper-

gold mine proposal. Bennett
commented that “he is no longer
sure he can meet his job creation
targets for mining because of
Ottawa’s decision.”

It seems the mining industry in BC
is heating up. In a resource-based
economy like ours, these decisions
will impact northern communities
and individuals heavily.