VANCOUVER (miningweekly.com) – The mining industry in British Columbia is cautiously optimistic as prices of key metal and resource commodities either rose or stabilised in 2016, new analysis by professional services firm PwC Canada has found.
The trend continued into the first quarter, building on net mining revenues rising to C$7.3-billion in 2016, up from C$6.3-billion in 2015, boosted by an increase in gross mining revenue and a decrease in costs for smelting, refining charges and freight costs.
"The last year was another challenging year for the British Columbia mining industry due to the continued volatility in global metal and mineral prices. However, since the end of 2016, we've seen an upward trend in prices of the commodities that are key to British Columbia’s mining results. British Columbia mining companies continued to work hard to keep their costs under control," provincial mining leader and partner Mark Platt said in a press release.
According to the report, gross mining revenue increased to C$8.7-billion in 2016, from C$7.7-billion in 2015. Cash flow from operations and capital expenditures also showed encouraging improvement year-on-year. The price of global commodities, in particular coal and copper, started to pick up again towards the end of year and held their ground into the first part of 2017, which augurs well for the provincial mining industry in 2017.
Jobs are also slowly returning to the sector as mines advance, open or restart across the province. The report indicates the number of jobs directly related to the survey participants increased to 9 329 in 2016, up from 9 221 in 2015. Northern British Columbia was one of the bright spots with the reopening of two metallurgical coal mines and a third set to open this summer.