The British Columbia mining industry posted record financial results in 2008, according to a PricewaterhouseCoopers (PwC) report, The Mining Industry in British Columbia — 2008. Aggregate pre-tax net earnings for the industry were up by 88% to $3.2 billion, the highest amount in the 41-year history of PwC's annual survey. Returns on shareholders investments in BC's operating mines, based on pre-tax earnings, reached an unprecedented 98% in 2008, up from 46% the prior year.
British Columbia's mining sector achieved these impressive results amidst a crashing economy in the later part of 2008, which was nothing short of outstanding. A coal price increase of 225% to US$261/tonne over the prior year was the primary driver of the record results; coal represents 86% of total product shipments in the British Columbia mining sector for 2008. However, if you fast forward to April 2009, the one-year prices announced were in the US$125/tonne range, a significant reduction from prices realized in 2008, but still high compared to historical averages.
PwC's 2008 survey summarizes the 2008 year-over-year financial information of 18 operating metal and coal mines (including the Trail Smelter), nine operations in the permitted or active permitting stage, six mines in the reclamation stage and seven advanced exploration stage properties, all in BC. There were a total of 40 participants in the PwC survey.
Click the PDF to download the complete survey.
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