While the forest industry remains a vital part of the B.C. economy, last week’s announcement that the Red Chris mine expansion would go ahead is another example of how mining is becoming the new “forestry” in this province.
Historically, both forestry and mining played enormously important roles in this province’s economic development. But forestry has long been identified as our number one industry, and much of our provincial heritage is tied to it.
But the momentum is shifting to mining and away from forestry. While the mining sector is thriving, the forest industry continues to struggle and is in a state of genuine crisis.
For example, the B.C. government has identified 35 private sector resource projects as being “critically important,” and 14 of those projects are mines (10 are LNG projects and 11 are clean energy projects).
The mining sector generates about $18 billion in economic activity annually and employs about 35,000 people, who make an average annual wage of more than $125,000.
In contrast, a recent federal report noted that in less than a year, more than a dozen B.C. sawmills employing more than 2,000 workers have closed. There have also been 40 curtailments of mill operations, leading to 1,000 temporary job losses.
The report cited a plethora of factors fueling the crisis. Unstable access to affordable fibre, little investment in manufacturing, excessive regulations, weak innovation and low domestic demand for wood-based products are some of them.
There are also the lingering impacts of the mountain pine beetle infestation and the increase in wildfire activity, which can consume huge stands of harvestable timber on an annual basis.
Adding to this lengthy list is, of course, the ongoing financial pressure caused by sustained U.S. softwood lumber duties, which have increased under the administration of U.S. President Donald Trump.
But the report notes the bulk of the problems are homegrown, not international or national.
Back to the Red Chris mine expansion for some healthier economic news.
The expansion in the northwest copper and gold mine will create 1,800 construction jobs and protect the 1,500 jobs currently in place in the massive 230-kilometre-sized site, about 80 kilometers south of Dease Lake.
The decision to greenlight the mine expansion was made in conjunction with the Tahltan Central Government, which is the local First Nations, and which will benefit significantly from an economic perspective.
This kind of partnership with local First Nations is the new model mines, and most other critical resource projects will have to employ going forward.
As Red Chris and other major mines such as Highland Valley and Eskey Creek are expected to thrive economically (helped in no small part by the federal government’s enthusiasm for critical mineral projects), don’t expect the provincial forest industry to bounce back anytime soon.
That industry’s many problems appear to be deeply entrenched, and there are no easy answers out there.
Economic momentum, it seems, has indeed swung towards mining and away from forestry, the one-time flagship industry of this province.
Keith Baldrey is Global TV’s legislature bureau chief.
Keith.Baldrey@globalnews.ca
