Mineral Exploration in BC: Challenges and Opportunities

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1 Mineral Exploration in BC: Challenges and Opportunities Dan M. Jepsen, RPF President & CEO Association for Mineral Exploration BC Minerals North Smithers, BC Friday, April 18, 2008

2 About AME BC AME BC promotes a healthy, sustainable and environmentally sound mineral exploration and mining sector in British Columbia for its members. Established in 1912 in Vancouver, BC 4,620 individual & 370 corporate members Hosts Mineral Exploration Roundup over 6,700 registrants in

3 BC Mineral Exploration and Mining Highlights 28,000 employed in BC $99,900/year wages and benefits $8 billion industry 24 major projects under review 19 in Northern and Central BC 3

4 Mineral Exploration and Mining Highlights BC companies raise over 50% of global mineral exploration financing Over 850 companies call Vancouver home Over 700 BC consultants and suppliers 4

5 BC s Competitive Advantage Proven mineral potential - great geology Expertise in geosciences, exploration & mine development Rail, road & port infrastructure Skilled workforce Low cost power Competitive tax structure and incentives 5

6 Provincial government support Mineral Titles Online state of the art mineral tenure acquisition Publicly available geoscience data Trade Missions 6

7 Exploration Expenditures in BC Data Courtesy: BC Ministry of Energy, Mines and Petroleum Resources 7

8 Commodity Prices (US$) * % increase Gold (oz.) $263 $ % Silver (oz.) $4.07 $ % Copper (lb.) $0.75 $ % Molybdenum (lb.) $1.75 $ % Zinc (lb.) $0.42 $ % *Prices as of April 7,

9 Fraser Institute Survey: Policy Potential Index 2007/08 (19/68) 2005/06 (23/64) 2006/07 (30/65) 2004/05 (44/64) 2003/04 (45/53) 2002/03 (44/47) 2001/02 (45/45) 9 Honduras Zimbabwe Ecuador Panama Bolivia India Indonesia Mongolia Philippines Venezuela Mali Kazakhstan Colombia Pap./N.Guinea Nunavut China Wisconsin DRC (Congo) South Africa Tanzania South Dakota Turkey Russia Washington New Zealand Argentina California Colorado Montana Brazil Burkina Faso NWT Idaho Alaska Zambia Namibia Spain Minnesota Queensland Victoria Peru New SthWales NewMexico West. Australia Mexico Ghana Nfld./Labrador Nthn. Territory Tasmania Brit. Columbia Ontario Nova Scotia Yukon South Australia Arizona New Brunswick Saskatchewan Botswana Sweden Ireland Wyoming Utah Chile Manitoba Alberta Finland Nevada Quebec

10 Challenges 1. Mine Permitting - Major Projects Management Office 2. Mineral Reserves/Geoscience 3. Aboriginal and Community Engagement: Social Licence 4. Land Access and Mineral Tenure 5. Labour Shortage/Education and Training 6. Infrastructure 7. Climate Change Initiative

11 Mine Permitting Number of projects under consideration (both EA and provincial mine permitting): 2001: : 23 Tulsequah Major projects management office to streamline environmental review process

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13 Hit 25 year low in 2004 in Canada; rebounded slightly in 2005/06 Mineral Reserves Canada (1980=100) adapted from NRCan Current discoveries unlikely to meet global demand for metals (esp. in China, India)

14 Geoscience BC government has committed $37 million toward Geoscience BC since 2005

15 BC Geological Survey Geoscience Geological Survey of Canada Treaty Glacier Federal commitments for data to lead to new discoveries (Targeted Geoscience Initiative)

16 Aboriginal and Community Benefits/ Social Licence Partnerships are key Engagement and cross-cultural understanding critical Provincial resource revenue sharing model needed Government commitment to consult ($30M) welcome 16

17 AME BC Initiatives Cultural Awareness Workshops ACE Guidebook Stepping Stone newsletter 10 Principles for Sustainable Relationships between the Mineral Sector & Indigenous Peoples Kutcho Community Visits 17

18 Land Access and Mineral Tenure Access to land a key issue throughout BC 2-Zone Model Land use plans continue to erode land base First Nations land title issues Duty to Consult and Accommodate Mineral Tenure Act amendments threat to certainty; working with government to best approach this 18

19 Labour Shortage Up to 100,000 workers needed over the next 10 years throughout Canada 40% of personnel across Canada plan to retire within 10 years Majority of workers in BC over 45 years old (52%) Average planned retirement age: 60 85% male; 4% Aboriginal 7,500 workers in next 5 years

20 Infrastructure Working with industry and governments on Northwest Transmission Line Kemess Power Line Worked with Water Highway BC to secure Hydrometric funding

21 2008 Initiatives: Summary Labour Market Task Force Strategic planning AME BC 5 year strategic plan Aboriginal community engagement MOUs Continue to work with all governments on addressing issues Leadership on issues including Permitting Asia Pacific gateway Pine beetle epidemic Infrastructure Hydroelectric Water monitoring 21

22 Summary Commodity prices, improved regulatory environment have made BC a preferred destination for mineral exploration and mining Key challenges remain in mineral reserves; geoscience; Aboriginal and community benefits; land access; and labour shortage Opportunities exist to address these challenges so that all British Columbians can benefit

23 Thank you! For additional information related to AME BC s activities and to inquire about corporate membership contact: Association for Mineral Exploration BC Suite West Pender Street Vancouver, BC V6C 3B2 Tel: (604) Fax: (604) Web: 23