VANCOUVER — It has been a busy 24 hours as the Association for Mineral Exploration British Columbia (AME BC) kicked off its Mineral Exploration Roundup 2013 on Jan.27 in Vancouver, BC. Billed as the world's premier technical mineral exploration conference, Roundup started up in style Sunday night with the 9th Annual Chair's Welcome Dinner hosted by AME BC Chair Michael McPhie.
During a brief address, McPhie underlined the importance of ongoing educational initiatives and community relations work geared towards assisting the general public in understanding the importance and breadth of the natural resource sector in British Columbia. Another key tenant of AME BC's recent work has been its continued focus on public geosciences, and the securing of funding and government support for related programs.
Geoscience BC will have a large presence at the conference and will release four updated provincial reports including a summary of its activities during 2012. Roundup's Jan. 29 technical sessions will feature a specific look at public geoscience initiatives.
The first afternoon keynote speaker was Hunter Dickinson CEO Ronald Thiessen, who explained HDI's renewed interest in British Columbia as a mining destination. He discussed how HDI had moved farther afield during the 1990s, but kept an eye on what he called the company's "home jurisdiction."
Thiessen compared capital and operational expenditure requirements for large scale mining operations in Latin America and South Africa, explaining how capital expenditures in emerging jurisdictions can run as high as $40,000 to $60,000 per tonne of throughput out of development. Whereas in British Columbia Thiessen explained that Taseko Mines' recently commissioned brownfield expansion at its Gibraltar copper-gold mine clocked in at just $10,000 per tonne of throughput.
“I think in B.C. we can develop our greenfield assets for roughly $20,000 to $35,000 per tonne daily throughput. In operational terms we're seeing numbers in some more challenging jurisdictions exceeding $20 per tonne to concentrate, in BC our large scale operations are half that number or less,” he added.
From there Thiessen touched on a number of other credentials that underline British Columbia as a desirable destination for the resource industry.
“Many regions met with us to spend our resource dollars within their borders, places across Latin America like Chile and Brazil, as well as Indonesia and many countries in Africa and Asia. I can say after these many years abroad that the opportunities have returned to North America, to the west in particular, and most importantly for us to BC. I believe we are on the cusp of a mining renaissance in Western North America.”
On socio-political risk:
“And then there is resource nationalism, a pox on the resource development industry. Aside from the obvious economic penalty, if you have a non-contributing partner, how can that partner give proper regulatory authority in terms of environmental issues and permitting. Worse is a recent trend of resource nationalism in post-development, which happens prior to company’s actually achieving return on capital.”
On environmental permitting:
“I know that some people think permitting in North America is too challenging, and I tell them that rigorous and arduous permitting is something we need to embrace. The challenges we generally face in this regard will eventually help to instill a sense of confidence in the regulatory process, which has been lacking for some time due to the history or legacy of mining issues. I believe a weak regulatory regime where one of the partners, usually government, is the permitting or regulatory authority is a recipe for disaster — resulting in either a lack of oversight, or worse, the regulations being used to artificially extract concessions from ownership.”
On labour and wage inflation:
“In BC we've had very stable wage inflations, and an efficient and skilled labour force. Comparable mines in Latin America typically have three to ten times the number of workers. Today in Chile, for example, miners are making wages at around 50% of our workers in BC, but when you have that many more employees your unit labour costs are much higher.”
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A. Paul Gill
Very encouraging article. I hope the financiers take notice. There are gold deposits collecting dust in Northern B.C. and base metal discoveries unexplored for lack of capital investment. A good picture of what theinvesting climate is like will be devleoped at the World Outlook Conference held at the Bayshore Inn just after the AME event – February 1 & 2, 2013. International speakers will debate the state of the US economy, China and trends in mining, real estate, etc. That conference provides a good view of where B.C. stands vis a vis the general trends in the world.