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Coal for the future October 11, 2012

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1 Coal for the future October 11, 2012
Ministry of Energy, Mines and Natural Gas

2 B.C. Mining Production: $8.6 Billion in 2011
As one of the world’s top mining jurisdictions, British Columbia is uniquely positioned to meet increasing global demand for mined products. We have rich mineral, coal and clean energy resources, competitive fiscal policies, extensive infrastructure, comprehensive and publicly available geoscience data, and an enviable location at the crossroads of North American and Asia. All of these factors make B.C. an ideal place to invest in mineral development. B.C. is Canada’s largest exporter of coal, largest producer of copper and only producer of molybdenum. The total production value of mining in B.C. was $8.6 billion in This is a big increase over 2010, when the production value was about $7.2 billion. Coal is a key part of B.C.’s economy, accounting for 67% of mining production, and contributing nearly $5.7 billion to the provincial GDP. There are 10 coal mines currently operating in B.C. Coal: $5.69 billion 10 operating coal mines

3 Operating Mines in Northeast B.C.
4 operating coal mines in the northeast Directly employ over ,400 people Produced 5.6 million tonnes in 2011 Clean metallurgical and PCI coal Northeastern British Columbia is an important part of the provincial coal industry. 4 of B.C.’s 10 operating coal mines are located in the northeast. Trend Brule Willow Creek Wolverine These mines currently employ more than 1,400 people. And in 2011, they produced 5.6 million tonnes, a substantial increase from 4.8 million tonnes in 2010. These mines produce clean metallurgical and PCI* coal which is largely exported to Asia, with lesser amounts going to Europe and South America. *PCI = pulverized coal injection Source:

4 Major Mine Development Projects in Northeast B.C.
11 major coal mine development proposals Gething, Carbon Creek, Quintette, Roman and Horizon are all in various stages of the approval process The northeast coal belt is full of exciting potential. There are significant coal resources in this region that have yet to be mined. Gething, Carbon Creek, the Quintette re-start, Roman and Horizon are all in various stages of the approval process. And advanced exploration projects like Suska, Sukunka, Bullmoose, Murray River, Waipiti and the Belcourt-Saxon project are all showing a lot of promise.

5 2011 Northeast Coal Exploration
$44.3 M spent on exploration programs 66,000 m drilled $ MILLION Exploration spending is a good indicator of how desirable a place an area is to invest in mineral development. And exploration expenditures in the northeast have risen dramatically in recent years. According to preliminary estimates from provincial regional geologists, exploration spending in B.C. was just over $44 million in 2011. As you can see from the chart, this means that spending more than doubled from 2010 to 2011. Exploration drilling, at about 66,000 m.

6 BC Jobs Plan Targets 8 new mines and 9 mine expansions by 2015
Already halfway there: 5 new mines approved/under construction 5 mine expansions approved/under construction The BC Jobs Plan was released in August 2011 It identifies mining as one of the province’s 8 key sectors for continued economic growth The Jobs Plan contains a number of targets related to mineral exploration and mining, including approving 8 new mines and 9 mine expansions by 2015. Since the Jobs Plan was released, 5 expansions of existing major mines have been approved: Highland Valley Copper Mine (October 2011) Huckleberry Mine (December 2011) Quinsam Coal Mine (January 2012) Elkview Coal Mine (January 2012) Endako (March 2012) And we count the following 5 new mines as part of those approved under the Jobs Plan: New Afton Mt Milligan Treasure Mountain Red Chris Bonanza Ledge

7 2012 Mineral Exploration and Mining Strategy
Released in May 2012 Builds on Jobs Plan commitments Vision: Seizing global demand to benefit British Columbians 29 action items Pages/MiningStrategy2012.aspx British Columbia’s Mineral Exploration and Mining Strategy outlines the steps the provincial government is taking to ensure a thriving mineral exploration and mining industry in B.C. We’re addressing the skills shortage, building relationships with First Nations, enhancing competitiveness and streamlining regulations To realize the vision of “Seizing global demand to benefit British Columbians”, the strategy is built around 6 key components: Enhance Our Competitive Edge Streamline Regulatory Processes Ensure the Health and Safety of Our Workers Protect the Environment Build Partnerships with First Nations Develop a Skilled Workforce A list of action items is associated with each of these 6 components for a total of 29 specific actions the provincial government is undertaking to ensure that mineral exploration and mining in B.C. continues to grow. The Mineral Exploration and Mining Strategy is available online:

8 Northeast Coal Strategy
Objectives: Obtain First Nations support for coal projects in northeastern B.C. and get these projects through the permitting process efficiently. Key Elements: Peace Northern Caribou Strategy Cumulative effects plan for coal block Revenue-sharing agreements between the Province and First Nations Defined consultation process to provide certainty and speed up licensing and permitting Because the northeast coal belt is such a unique area with so much development potential, the Province is building a special coal strategy for this region The objectives of the northeast coal strategy are to obtain First Nations support and help proposed projects in the region move through the permitting process in an efficient and timely manner.


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