MABC: Budget 2012 Stays the Course

VICTORIA, BRITISH COLUMBIA--(Marketwire - Feb. 21, 2012) - The budget released today sets the stage for a steady road ahead for the mining industry, with a continued commitment to seeing the expansion of nine mines, and the opening of eight new mines by 2015. The commitment to improving regulatory efficiency, delivery of services, and reducing turnaround times for permits in the mining and exploration sectors takes the province of British Columbia another step closer to realizing that goal.

The mining industry benefits communities around the province with over 21,000 direct jobs, and more than double that including indirect and induced employment. The mining industry expects to continue to be an economic engine in the provincial economy. As noted in the budget, exploration spending in 2011 was 1,500% higher than a decade ago. "With current growth projections for our industry, we estimate that over 8,000 direct jobs will need to be filled in the mining sector in BC between 2012 and 2015," said Karina Brino, President and CEO of the Mining Association of BC.

In addition to the high average wages that people working in the industry enjoy, the mining industry in British Columbia contributed $414.8 million in provincial tax in 2011. Add to that another $364 million in mineral royalties and mineral land tax. "The payments our industry makes to government translate directly into spending on core government operations and support a stable provincial economy," said Brino.

Of note in the Budget 2012:

• Reviewing the carbon tax is prudent to ensure BC maintains its competitive position relative to other jurisdictions. The mining sector is generally supportive of carbon management legislation, provided that it includes mechanisms to facilitate growth, mitigate international competitiveness, and encourage efficient operations.

• Extending the tax relief for ports will help ensure that our mining products can make it to markets across the globe, supporting a globally diversified trade economy.

• Investing in apprenticeship training, including an Aboriginal Post-Secondary Education and Training Framework and Action Plan, and supporting labour mobility, will help match people to jobs across the province.

The Mining Association of BC welcomes a prudent and conservative fiscal approach by government in the face of global economic uncertainty. In light of the successive credit rating upgrades over the past decade, BC is being recognized as an attractive place to invest.

MABC represents companies involved in the exploration and development, mining and smelting of minerals, metals, coal and industrial minerals in British Columbia. It is regarded as the pre-eminent voice of mining in the province.