{"id":81769,"date":"2020-10-23T14:39:00","date_gmt":"2020-10-23T14:39:00","guid":{"rendered":"https:\/\/resourcework2.devstudio.work\/?p=81769"},"modified":"2024-11-12T02:42:23","modified_gmt":"2024-11-12T02:42:23","slug":"bc-mining-carbon-price","status":"publish","type":"post","link":"https:\/\/resourcework2.devstudio.work\/?p=81769","title":{"rendered":"BC mining in deep carbon pricing trouble"},"content":{"rendered":"\n

Mining in BC supports more than 35,000 workers and their families, all over the province, and pays annual wages averaging an incredible $123,700. And our 14 major mines and two big smelters pay governments more than $1 billion a year in taxes \u2014 money that goes to education, healthcare, and other public services.<\/p>\n\n\n\n

Quite apart from the money, BC\u2019s miners are also leaders in environmental protection and sustainability, having already lowered emissions to the point equivalent to taking 1.3 million to 1.9 million passenger vehicles off the roads. BC\u2019s steelmaking (metallurgical) coal is estimated to result in 50% fewer emissions than Australia\u2019s. A tonne of BC copper results in 23% fewer GHG emissions copper from Chile. Our aluminum results in 85% fewer GHG emissions than aluminum from Russia.<\/p>\n\n\n\n

However, our miners, through the Mining Association of BC, point out that, at $40\/tonne, BC\u2019s carbon tax is the highest in North America and among the highest in the world. This impacts mine operations, making them more expensive despite the strong environmental record. And to boot, it makes it more difficult to get new mines to start up as some older ones come to an end over the next 20 or so years.<\/p>\n\n\n\n

\u201cKey mining and smelting operations in the U.S., Australia, Russia and the Middle East pay no price for carbon. Chilean miners only pay carbon tax on their electricity generation at $5 per tonne CO2e (USD). Clearly, this places BC\u2019s mining industry at a cost disadvantage with firms in these competing nations.\u201d<\/p>\n\n\n\n

In short, while mining products make up 24% of BC\u2019s exports, BC\u2019s level of carbon tax makes it tougher and tougher to compete with miners in countries that have no carbon taxes, or much lesser ones.<\/p>\n\n\n\n

The industry notes: \u201cWith the exception of BC, all jurisdictions with carbon pricing regimes \u2014 whether a tax or an ETS \u2014 provide support for their EITE industries to protect their firms and workers and prevent carbon leakage. This includes every other Canadian province, including the provinces of Ontario, Quebec and Alberta, where there is significant mining activity.\u201d<\/p>\n\n\n\n

EITE stands for \u201cenergy-intensive, trade-exposed\u201d \u2014 industries and companies that can\u2019t just pass on carbon costs to buyers, because the prices of their products are set by competitive international markets. <\/p>\n\n\n\n

In 2018, BC\u2019s miners, through the BC government\u2019s Mining Jobs Task Force, made 25 recommendations<\/a> to strengthen the competitiveness of BC\u2019s exploration and mining sectors, and to identify a collective, long-term vision for BC mining.<\/p>\n\n\n\n

\u201cAs the Task Force identified, the lack of protection for mines and other EITE industries like pulp and paper or forestry under BC\u2019s carbon tax, is the single greatest barrier to the competitiveness of BC\u2019s mining industry. This is the key competitiveness concern of MABC\u2019s members: we are not competing on a level playing field, even within Canada.\u201d<\/p>\n\n\n\n

They seek \u201ctargeted, transparent and temporary support to EITE industries.\u201d Adds MABC: \u201cBC\u2019s mining sector has among the lowest GHG emissions profile in the world. Yet, we are the only jurisdiction in the world with a carbon price that does not provide meaningful support for its mining industry and workers. <\/p>\n\n\n\n

\u201cFiscal and policy changes are needed to strengthen BC\u2019s mining sector to allow it to compete and succeed in global markets. As the voice for the mining industry in BC, MABC is calling for:<\/p>\n\n\n\n

    \n
  1. \u201cA change to the carbon tax to level the playing field for BC mining so it protects both the environment and jobs;<\/li>\n\n\n\n
  2. \u201cAction to improve the clarity, predictability and timeliness of BC\u2019s regulatory framework for BC mining.\u201d<\/li>\n<\/ol>\n\n\n\n

    The case is well put in these new reports from MABC.<\/a><\/p>\n\n\n\n

    And while the BC mining sector is targeting BC\u2019s carbon tax today, the national mining and minerals sector has also called for tax and other measures<\/a> to address Canada’s \u201cwaning mineral industry competitiveness.\u201d <\/p>\n\n\n\n

    And miners are concerned about Ottawa\u2019s undefined new rules<\/a>, under the Strategic Assessment of Climate Change, that will require proposed mines (and oil\/gas projects) to describe how they will achieve net-zero emissions.<\/p>\n\n\n\n

    It all takes on more importance, and urgency, as the world moves into a lower-carbon future that will increasingly need metals, critical minerals and rare earths. MABC notes that electric vehicles require up to five times the amount of copper as a traditional combustion engine. And that the average wind turbine requires about 260 tonnes of steel \u2013 made with 170 tonnes of steelmaking coal.<\/p>\n\n\n\n

    Canada already supplies 13 of the 35 minerals that the U.S. has identified as critical. And it can do and provide much more, if government barriers are fixed.<\/p>\n","protected":false},"excerpt":{"rendered":"

    BC’s mining industry contributes $7.4 billion to BC\u2019s economy (GDP). It spends $3 billion to purchase goods and services from 3,700 small, medium and Indigenous businesses in 215 BC communities. And it spends $330 million on exploration.So how is this critical industry coping with the carbon price? And why\u00a0do governments seem set on making it more difficult and expensive for our mines to operate, and more difficult to compete in world markets?<\/p>\n","protected":false},"author":9,"featured_media":84608,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[260,141,11],"class_list":["post-81769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mining","tag-carbon-price","tag-carbon-pricing","tag-mining"],"acf":[],"yoast_head":"\nBC mining in deep carbon pricing trouble -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/resourcework2.devstudio.work\/bc-mining-carbon-price\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BC mining in deep carbon pricing trouble -\" \/>\n<meta property=\"og:description\" content=\"BC's mining industry contributes $7.4 billion to BC\u2019s economy (GDP). 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