MABC: Budget 2011 Reflects Rising Contribution from Mining

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 15, 2011) - The Mining Association of British Columbia (MABC) noted the increased contribution from the BC mining sector to the Province's fiscal position and is encouraged by continuing signs of economic recovery.

"The mining industry in BC is undergoing a renaissance, with new mines and major mine expansions contributing to BC's economic recovery," stated Pierre Gratton, President and CEO of MABC.

Key economic and fiscal results highlighted in Budget 2011 include:

• Mineral exploration expenditures exceeded $320 million in 2010, the third-highest total in the province's history.
• Metallurgical coal and metal revenues in 2010 exceeded original budget estimates by $80 million.
• Metallurgical coal and metal revenues are forecast to increase by approximately $120 million in 2011/12.

These projections reflect the record prices for metallurgical coal, copper and gold in addition to the strong price recovery of other major BC mineral and metal products, combined with rising overall production. Over the past decade there have been four major coal mines and one major metal mine opened in BC, while three new metal mines are currently in construction. Major mine expansions at Endako, Highland Valley Copper, MAX and Gibraltar add to BC's strengthening mining sector. In 2010, new mine development expenditures exceeded $1 billion.

"The province's responsible tax and fiscal policy has laid the foundation for the mining sector's growth, and we are now seeing the results: thousands of new, high-paying jobs, rising government revenues and growing exports," added Gratton. "Continuing fiscal prudence and competitive tax policy – including maintaining the HST – will help to ensure our sector's continued growth."

MABC represents companies involved in the exploration and development, mining and smelting of minerals, metals, coal and industrial minerals in British Columbia. It is regarded as the pre-eminent voice of mining in the province.