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By Michael Goehring, President and CEO, Mining Association of British Columbia
The views, statistics, and opinions expressed by third parties are those of the authors for which PwC Canada takes no responsibility and disclaims all liability, and the above disclaimer applies to any such third-party comments.
Over the past few years, critical minerals have moved from a broad policy construct to the forefront of global economic and national security considerations. They are now recognized as essential to our sovereignty and long-term prosperity. The question facing British Columbia is how we will ensure projects are delivered in a predictable, transparent, and timely way.
There are encouraging signs. The BC government has begun to accelerate the movement of projects through the permitting process. Five mining projects have received approvals over the past 12 months, with three now under construction. Where there was once inertia, there is now momentum.
This is a welcome policy change that sends a positive signal to global investors that British Columbia is looking to become more competitive and attract capital.
However, momentum alone is not enough. The next phase will determine whether this progress is into the future. It will be fundamental to ensure changes to permitting become systemic and durable—a competitive advantage for British Columbia. This means permitting must evolve from a series of individual successes into a system that consistently delivers timely and predictable outcomes for all projects—not just those designated as priorities.
Permitting should be a lever to make British Columbia a destination of choice for investment. Given capital is mobile and projects compete across jurisdictions, investors will put their capital in regions where they can achieve the most secure and timely returns. If British Columbia can offer both regulatory certainty and speed, it will attract the investment needed to expand and sustain the sector over the long term.
There are early indications that governments understand this. At the federal level, new initiatives are beginning to align environmental assessment processes and reduce duplication. Substitution agreements, where federal and provincial reviews are coordinated, show how approvals can be delivered more efficiently. Provincially, commitments to accelerate permitting and prioritize critical mineral development are starting to produce results.
Beyond permitting, infrastructure decisions are also beginning to align with the needs of the mining sector. Strategic investments such as the North Coast Transmission Line have the potential to unlock entire regions, enabling multiple projects to proceed rather than advancing one project at a time. This type of infrastructure investment is essential if British Columbia is to realize the full value of its substantial minerals base.
Fiscal policy too needs to pull in the same direction. In the competition for mining investment, costs are vital, especially at early stages of project development, when companies are spending heavily on technical work and feasibility studies without cash flow. Expanding the provincial sales tax to these inputs raise costs at precisely the time when projects are most vulnerable. Other jurisdictions, including Ontario, provide rebates or exemptions for these activities. If British Columbia wants to attract greater investment and move projects into construction, its tax policy must support that objective. Layering additional costs onto a growth sector is counterproductive.
Government must also address the implications of the BC Court of Appeal’s Gitxaala decision. Economic reconciliation is a core value of British Columbia’s mining industry. The province’s mining sector has partnered with First Nations for decades and will continue to do so. The provincial government must restore certainty and clarity to support development and investment in British Columbia’s mining industry and other resource sectors.
The urgency of the moment can’t be overstated. Global competition for investment capital is fierce. The United States, for example, is moving aggressively to accelerate its own mining industry through policy and regulatory reforms. Other mining jurisdictions, including within Canada, are also looking to grow their critical minerals sectors. Capital is quickly responding to these changes.
The opportunity in British Columbia is significant. But British Columbia can’t assume investment will come simply because the province has a robust mineral endowment.
The province’s mining and critical minerals industry represents tens of billions of dollars in potential investment, alongside substantial economic and employment benefits. In many regions, particularly in the north, mining plays a key role in supporting communities and can help offset ongoing mill closures in British Columbia’s forestry sector. Twenty-two percent of all mining-related employment in the province is located in Metro Vancouver and Vancouver Island—where there are no mines—due to the location of head offices and corporate functions and a sizable mining supply chain.
However, this opportunity is time-sensitive. Global investors focus on government actions as well as words. We are at an inflection point, and continued progress on permitting, infrastructure, and other important policy areas is essential to build confidence. Continued action will demonstrate British Columbia is focused on sustaining the momentum in the mining sector.
While there’s more work to do, the past year has shown that change is afoot. The task now is to incorporate the changes and consistently apply them across every project. If British Columbia can do that, it will help secure Canada’s role as a reliable and responsible supplier of the critical minerals, precious metals, and steelmaking coal Canada and our allies need.
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