Optimism returns to B.C.‘s mining sector as revenues rise by over a third in the last year
British Columbia's mining industry remains upbeat in 2017, as prices for most metals and minerals produced in the province continue to steadily recover from multi-year lows. Although most commodity prices remain below the record highs seen in 2011, the recent increases are part of an upward trend in the mining cycle, according to PwC Canada's 50th edition of their annual report on the mining industry in British Columbia.
Strong performance for the sector in 2017 has meant higher prices - leading to a 35% increase in gross revenue from mining operations across the province. Gross mining revenue from B.C. operations came in at CA$11.7 billion in 2017 compared to CA$8.7 billion in 2016.
"Confidence has returned to the B.C. mining industry. Commodity prices have increased and we haven't seen such positivity since the recovery following the 2008-09 global financial crisis. We are cautiously optimistic that the worst is behind us and that the industry will continue to recover," says Mark Platt, B.C. Mining Leader, PwC Canada.
The survey, part of PwC Canada's Canadian mine series, also highlights some of the opportunities and challenges for the mining sector, which is a key contributor to the B.C. economy and Canada's GDP. The industry is well positioned as a key producer and supplier in the new low-carbon economy, with B.C. producing metals and minerals used in, or that are instrumental in producing components for, everything from wind turbines to electric vehicles.
The industry has come a long way since 1968, the first year that the survey was prepared, when the price of gold was trading at about US$35 per ounce, copper was trading around US$0.50 per pound and the Britannia Mine, now a museum, was still producing copper, gold, silver and other metals and minerals.
To access the report, please click here.
About PwC Canada
At PwC, our purpose is to build trust in society and solve important problems. More than 6,700 partners and staff in offices across the country are committed to delivering quality in assurance, tax, consulting and deals services. PwC Canada is a member of the PwC network of firms with more than 236,235 people in 158 countries. Find out more by visiting us at www.pwc.com/ca.