VANCOUVER – In its 46th annual mining industry survey, PriceWaterhouseCoopers‘ Digging Deep: The Mining Industry in British Columbia in 2013 report reflected a difficult year for the sector across all commodities.
“These are challenging times for BC’s mineral exploration, development and mining industry,” the report starts out. “Volatile commodity markets, challenging financing conditions, and rising energy and labour costs pose a number of hurdles for companies across the province. As a result, the net income and revenues generated by BC companies fell for the second straight year in 2013. Mining companies were forced to cut costs and some held back on development to try to maintain healthy balance sheets and sustain cash for long term growth.”
The annual report attempts to capture the financial results and major trends in the province’s mineral exploration, development, and mining industry. In 2013 a total of 37 projects participated in the survey – 21 operating metal and coal mines, 14 projects in the development stage, and two exploration stage assets – a comparable sample set to that surveyed in 2012.
Participants reported gross mining revenues of $8.5 billion, down from $9.2 billion in 2012 and $9.9 billion in 2011, when commodity prices were at or near record highs. The decline, attributed to lower commodity prices, higher costs, and some cutbacks in activity, drove net income down to $1.4 billion for the year, compared to $1.8 billion in 2012.
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