Canada’s mining sector is expected to rebound from last year according to the latest report from PWC.
2015 was a tough year for mining overall and was compounded by the closure announcement of the Huckleberry Mine in Houston
MYPRINCEGEORGEGNOW asked Canadian Mining Leader, Liam Fitzgerald about the closure and while he doesn’t know too much about the mine, he did provide a couple reasons on why these decisions are made.
“When you look at closures overall, they are mostly related to either non-core assets coming off-line or when you’re looking at our cost containment strategy some companies had to make tough decisions on what was a profitable mine as well as reining in their costs.”
Despite the closure, BC’s mining sector was given a favourable review overall during the 2016 Global Mine report due in large part by the level of promotion from the provincial government.
“They have done a very good job on promoting mining because the provincial government has produced and expanded the Mining Exploration Tax Credit so it is a very good province for exploration and it will continue to be. It is the best province for incentives compared to Ontario and Quebec.”
Fitzgerald would also like to see more balance from BC when it comes to metals.
“BC does rely a little bit more on the base metals so they are a little more reliant on the demand side which still tends to be soft compared to the precious metals such as New Gold where they are seeing a little more bounce.”
The 2016 report also revealed the first ever collective net loss for the Top 40 companies which totalled 27 billion dollars.
(files from Brendan Pawliw with MY PRINCE GEORGE NOW)