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RENO (MINEWEB) - After more than a decade without a new metal mine being constructedor opened in British Columbia, the BC mining industry "has madegreat strides in 2011 and the outlook for continued growth andconstruction looks very positive," said a new report published byPwC BC Regional Mining Practice. "There is greater investment potential in the province than ever asit continues to bring its projects on line," said the report. "BCis forging ahead." Those surveyed in the PwC study, Forging ahead, the mining industry in British Columbia 2011 , included 17 operating metal and coal miners (including onesmelter operation), 13 operations in the permitted or activepermitting stage, eight advanced exploration stage properties andthree mines in the reclamation stage. The principal products of thecompanies surveyed are coal, copper, zinc, molybdenum, lead, gold,and silver. Among the highlights of the report: --Gross mining revenues increased 25% from Cdn$7.9 billion in 2010to $9.9 billion in 2011. The $2 billion increase was almost allattributable to higher metallurgical coal prices and more coalshipments. --Net income before taxes was consistent with 2010 at C$3.7billion. --The average number of individuals employed by BC mining companiesincrease from 8,195 employees in 2010 to 9,310 employees in 2011.Average 2011 employee earnings increased 7% from $108,100 in 2010to $115,700 per employee. --Pre-tax return on shareholders' investment decreasedsignificantly from 62.9% in 2010 to 46% in 2011 "reflecting thesignificant increase in shareholders' investment in the year." --Capital expenditures increased 135% from $1.25 billion in 2010 tonearly $3 billion in 2011. Projects under construction accountedfor almost $1 billion of total capex. --Met coal shipments increased 10% from 22.3 million tonnes in 2010to 24.5 million tonnes in 2011. Total coal revenues increased from$3.4 billion in 2010 to $5.2 billion in 2011, comprising 59% oftotal BC mining revenues reported last year. --Shipments of copper concentrate decreased from 712,000 tonnes in2010 to 668,000 tonnes in 2011. Total copper revenues decreasedfrom $1.37 billion in 2010 to $1.32 billion in 2011. --Zinc and zinc concentrates accounted for $693 million of total BCmining revenues in 2011, an 8% decrease from the $755 millionreported in 2010. Zinc shipment declined 13% from 332,000 tonnes in2010 to 289,000 tonnes in 2011. --Revenues for silver nearly doubled from $416 million in 2010 to$811 million in 2011. The revenue jump was driven by a 75% priceincrease. --Net mining revenues from gold fell in 2011 from $224 million in2010 to $164 million, a decrease of $70 million or 31%. For BC,gold is primarily a byproduct from copper mining activities. --Shipments of lead and lead concentrate increased 20% in 2011 from70,000 tonnes in 2010 to 84,000 tonnes. The effects of higher leadprices and increased shipments generated a 36% increase in netmining revenues from lead from $157 million in 2010 to $213 millionin 2011. The Government of British Columbia estimates total mineralexploration expenditures in BC of $463 million for 2011, up from$322 million. Total claims tenured in 2011 cover 5.1 millionhectares, a 19% increase from the 4.3 million hectares of claimsstaked in 2010. In 2011 the BC mining industry made total payments to thegovernment of $805 million, up $114 million from the payments of$691 million made in 2010. Direct tax payments rose by $81 millionfrom $509 million in 2010 to $590 million in 2011, mainly due toincreases in coal mineral taxes. As the demand for BC minerals is expected to grow over the next 10years, there will be a declining supply of workers available formining occupations at the same time as the demand for workersgrows. Labor demand in the industry will be 29% higher in 2021compared to 2011 demand, while labor supply will be 4% lower in2021. "In BC, close to half of the mining labour force could be eligiblefor retirement by 2020," said PwC. "With more than 20 majoroperating mines, 300 mineral exploration projects and 30 newaggregate mines, at least 15,000 new workers might be needed tomeet the labor requirements." "BC has a lot of reasons to be optimistic about mining," saidMichael Cinnamond, leader of PwC's BC Mining Industry Practice andco-author of the report. "In addition to record breaking revenuesin 2011 there were four new metals mines under construction,including Copper Mountain which went into commercial production,and there are many more projects in the permitting process." "However, there is no room for complacency and the BC miningindustry is working hard to address land access rights, buildpartnerships with First Nations communities, and plan for futureinfrastructure and workforce needs," he stressed. SUBSCRIBE to Mineweb.com's free daily newsletter now. We are high quality suppliers, our products such as Custom Drawstring Bags , China Custom Printed Cycling Jerseys for oversee buyer. To know more, please visits Personalized Pillow Cases.
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