Industry buoyed by strong demand and higher prices

British Columbia’s mining sector had another year of improved financial results and industry growth in 2004, continuing a six-year trend. Higher metals and coal prices driven by strong demand, and an increase in the number of mines in production helped to push the aggregate industry net mining revenues up 29% to $3.5 billion, and contributed to total net earnings of $871 million in 2004–the highest levels since PricewaterhouseCoopers (PwC) began conducting this survey in 1968. These and other findings were revealed in a PwC report titled The Mining Industry in British Columbia–2004, an annual survey and assessment of the overall performance of the province’s mining industry.

The survey summarizes the financial information of B.C.’s 18 mines that are operating or about to commence operations, one smelter, eight mines in active permitting, eight mines in reclamation, and six exploration properties, for a total of 41 participants, up from 31 in 2003.

The B.C. government estimates that the total exploration expenditures by all companies in 2004 was $130 million, up by 136% from 2003. Total mining claims staked in 2004 were 47,600, an increase of 30% over 2003.

Copies of the full survey report are available at www.pwc.com/ca-mining.