North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Like 2013, this year is expected to be another banner year for mining in British Columbia.

An increasingly important industry in Canada's westernmost province, mining takes up a very small portion of British Columbia's vast 944,735 square kilometers (364,764 square miles) land mass - less than one percent - but the industry makes a tremendous impact on the province's economy.

Today, British Columbia has 19 operating mines (nine coal and 10 metal). By comparison in 2001, the province had 15 operating mines (seven coal and eight metal).

In 2012 (the most recent year for which figures are available), mining contributed more than C$8.3 billion in value to B.C.'s economy, and mining exploration spending hit a record C$680 million, up 47 percent increase from the previous year. Exploration spending continued to be strong in 2013, and mining remains one of the province's more important economic drivers.

More than 30,000 people across the province, which is Canada's third-largest with more than 4.4 million people, were employed in mining, mineral exploration and related sectors in 2012. This shows significant growth since 2001 when only 14,700 people held mining-related jobs in B.C.

B.C. mining also employs more First Nations members than any other industry, and the province has signed 10 economic and community development agreements with First Nations.

In 2013, the first checks were delivered to First Nations under terms of revenue-sharing agreements with the New Afton, Copper Mountain and Highland Valley mines.

In addition, mining contributes hundreds of millions of dollars in revenue that help pay for government services like health care and education.

"B.C.'s mining industry has not only helped shape British Columbia over the last 150 years, it is also an integral part of our province's strong and stable economic future. I look forward to 2014 and working to ensure that British Columbia's mining industry remains a cornerstone of our province's overall success," said Bill Bennett, B.C.'s minister of Energy and Mines and Minister responsible for Core Review

New mines

The B.C. government anticipates start-up of production in 2014 at two new mines, Red Chris and Roman, both currently under construction in Northwest and Northeast B.C., respectively.

Red Chris, a C$500-million copper and gold project owned and operated by Imperial Metals Corp., is located just south of Dease Lake. It will provide 750 full-time jobs, according to B.C. officials.

Roman, where an Anglo American plc subsidiary began construction in August, will be a $340-million coal mine located near Tumbler Ridge, B.C. It is expected to provide 375 full-time jobs.

Overall, the long-term outlook for mining in B.C. is very positive. Government officials note that since the start of the BC Jobs Plan, two new mines have opened, and five more mines are under construction or permitted in B.C. The province also has approved seven major expansions of existing mines.

New Afton is a new gold mine that provides 405 full-time jobs near Kamloops, and Mount Milligan is a C$1.5 billion copper-gold mine located northwest of Prince George. Some 350 full-time workers, mostly local residents, are employed at the operation which began production in 2013.

Mount Milligan is owned by Idaho-based Thompson Creek Metals Co. Inc., is located 155 kilometers (94 miles) northwest of Prince George and mid-way between the communities of Fort St. James and Mackenzie.

A phased start-up of the operation began Aug. 15, with production of copper and gold concentrate beginning the following month. The first load of saleable concentrate left the mine for Thompson Creek's load-out facility in Mackenzie on Sept. 24, and the mine celebrated its commissioning in Oct. 8.

The ramp-up at Mt. Milligan continues to progress with mine pit grades as expected, metal recoveries in the mill above expectations and mill throughput slightly below expectations at this stage in the ramp-up, Thompson Creek reported Jan. 13.

The company said it is working through what it believes to be typical ramp-up issues. As part of this process, Thompson Creek has reassigned several senior managers from its molybdenum operations to Mt. Milligan. Management believes the mine will reach commercial production, defined as operating the mill at 60 percent of design capacity for 30 days, in the first quarter of 2014.

Thompson Creek CEO Jacques Perron said, "We are very pleased with the quality of the concentrate, as well as the recoveries of copper and gold at this stage of the ramp-up. Throughput is proving to be a bit challenging, as we continue to experience issues in the grinding and flotation circuits. We believe these typical ramp-up matters will be resolved in due course. We are pleased with the re-assignment of key individuals to the Mt. Milligan senior operations team, and we believe their operational expertise is having beneficial results."

From start-up through Dec. 31, Mt. Milligan produced 10.9 million pounds of copper, 21,100 troy ounces of gold and 41,800 troy ounces of silver in concentrate.

The company expects its second shipment of copper and gold concentrate from the new mine to occur in late January.

New opportunities

Bennett met with various federal ministers in Ottawa Jan. 13 to discuss Taseko Mines Ltd.'s proposed New Prosperity mine, a C$1-billion project, which would provide 500 full-time jobs in the Cariboo region of north-central B.C.

The proposal requires the approval of both the federal and provincial governments to proceed and Bennett encouraged the federal ministers to recognize the great economic and social benefits that the project would create for the local communities as well as British Columbia's proven track record of mitigating environmental impacts.

Five additional mining projects are under construction or permitted, seven major mine expansions have been approved and a further 20 major mines and expansions are moving through the province's environmental assessment and permitting process. Both Gibraltar mine in the Cariboo region and Line Creek in the Kootenays received Mines Act permit amendments that resulted in nearly C$400 million in investment and ensured jobs for 650 workers.

B.C. officials also point out that mining in the Canadian province continues to be one of B.C.'s safest heavy industries and has a lower injury rate than most of the other resource and industrial sectors.