The Mining Industry in British Columbia – 2009 report shows the province received pre-tax net earnings of $2.3 billion in the 2009 calendar year despite the economic issues that are still gripping the world. While the total is down from the all-time record of $3.2 billion in 2008, it is still at a historically high level.
"The 2009 financial results for BC's mining industry are very similar to those seen in 2007, which at the time was a record year itself," PwC BC mining division leader and report co-author Michael Cinnamond said.
"The industry weathered the global economic downturn better than most. Even so, the mines in BC were faced with lower shipments and weaker prices across the board last year due to a drop in overall economic activity just about everywhere.”
One of those areas, he highlighted, was coal – the biggest sector in BC’s overall mining industry saw volumes shipped drop 24% and prices almost halved.
Metallurgical coal shipped in the province last year was recorded at 16.9 million tonnes, compared to 2008’s 22.3Mt. To add to the hurt, average coal prices fell dramatically from $US260/t in 2008 to $157/t in 2009.
Total metals and coal shipments from BC mines fell 21% to 21.3Mt from 26.8Mt in 2008, and capital expenditures decreased 33% from $853 million to $568 million.
The data also outlined the performance of copper, zinc/zinc oxide, gold and molybdenum mining last year, with PwC saying copper was the second most significant contributor to revenues at $1.2 billion despite a 26% decline in prices and 14% drop in shipment tonnage.
"BC's mining sector is an important component of the provincial economy, contributing $5.7 billion in 2009," PwC mining division manager and co-author Erfan Kazemi said.
"Overall employment fared well through the downturn, maintaining the 2008 level of employment and average salary. The mining industry paid out $851 million in salary and benefits last year, with the average salary at $110,800."
The firm compiled the report after polling 34 chief executive officers of British Columbia-based mining companies late last month. It noted that 61% of those interviewed considered their businesses to have returned to normal and 50% said they were actively pursuing new properties, acquisitions or mergers.
“The overall results in the PwC CEO poll suggest that the BC mining industry weathered the storm during the last industry cycle downturn at the start of the decade. As a result it has emerged relatively unscathed from the recent global downturn,” PwC said.
The survey contains the feedback of 41 participants with BC operations – 17 metal and coal mines; 13 operations at the permitting stage which had received a permit; three mines in reclamation; and seven mines in the advanced exploration phase.
