VANCOUVER, BC – PwC today released its 2019 survey of BC mining entitled ESG: Resilience and opportunity in uncertain times. Published annually, the report highlights the continuing importance of mining to the BC economy and shows how commodity price volatility in 2019 slowed growth in the sector as the year progressed.
According to PwC, price volatility led to a decrease in overall revenue and net income for BC mining companies in 2019. Gross revenues fell $1 billion from the year previously to $11.4 billion, cash flow decreased from 2018, and direct employment dropped slightly to 11,784 workers at BC’s operating mines, smelters and major projects. Despite these challenges, direct payments to government from mining reached $1,057 billion, up from $953 million in 2018 and $884 million in 2017, a 20 per cent increase in two years. The growth in direct payments is attributed to steady increases in employment taxes, the carbon tax, taxes on fuel and minerals.
“PwC’s report underscores the continuing importance of mining to the BC economy and a rising standard of living in cities and towns across our province. The industry supports billions in economic activity, more than 35,000 jobs and spends more than $3 billion annually on goods and services in 215 BC communities," said Michael Goehring, President & CEO of the Mining Association of BC. “With the right policies in place, mining offers British Columbians a significant opportunity to help our economy grow and recover from COVID-19.”
“The numbers point to the need for policy makers and industry to work together to improve our province’s fiscal and regulatory conditions so our mines and smelters can better compete and succeed in global markets,” said Goehring.
ESG (Environment, Social and Governance) is a key focus of this year’s report. According to PwC, long before ESG became topical, BC’s miners began to improve their environmental, social and governance performance. Today, BC miners operate to some of the world’s toughest regulatory standards, are leaders in advancing economic reconciliation with Indigenous nations, and are continually improving their governance and diversity. British Columbia is also a leading exporter of metals and minerals essential to the low-carbon economy.
“The leadership that BC’s mining industry has taken on environmental, social and governance performance is one of the reasons the industry has been able to keep operating through COVID-19,” said Goehring. “Our ESG profile is also an important part of an emerging BC brand of responsibly produced, low-carbon minerals and metals.”
To download the PwC report on the BC mining industry, click here.
About the Mining Association of British Columbia:
MABC is the voice of mining in British Columbia, representing operating steelmaking coal, metal and industrial mineral producers, as well as smelting operations and advanced development companies in the province. Our mandate is to encourage the safe, responsible development and operation of mining and related facilities across British Columbia. The mining industry generated more than $12 billion in economic activity and supported over 35,000 direct and indirect jobs in 2019, while contributing more than $1 billion in direct payments to the provincial government.