Premier Christy Clark announced today government will extend the $10-million B.C. mining flow-through share tax credit program for 2014 to support mining exploration investment.

"B.C.'s mineral exploration and mining industry is a great comeback story," said Premier Clark. "It's a vital part of our strong economy, supporting good paying, secure jobs in communities across the province -and the best is yet to come."

The B.C. mining flow-through share tax credit - projected to be valued at $10 million - helps junior exploration companies attract investment and continue making important resource discoveries in the province. It provides an incentive which can be used to raise additional revenue for mineral exploration and development.

"Resource development is the backbone of our way of life in B.C.," said Bill Bennett, Minister of Energy and Mines and Minister Responsible for Core Review. "We're extending the tax credit because junior exploration companies are on the front lines. It's their discoveries that expand the mining sector and the province's economy by finding new opportunities which create jobs not just in our rural communities, but in the downtowns of urban centres like Vancouver as well."

The preliminary regional estimates for exploration expenditures in 2013 are $476 million, which is the second highest on record. Over the past 10 years, approximately $3.5 billion has been spent on mineral exploration throughout the province. About 30,000 people are employed in the mineral exploration, mining, and related sectors, in over 50 communities across B.C.

"Today's announcement demonstrates that the provincial government is committed to encouraging investment in mineral exploration," said Gavin C. Dirom, president & CEO of AME BC. "By extending this tax incentive into the future, the provincial government will ensure our world-class industry continues to be globally competitive and attractive to investors."

Premier Clark also announced that, due to recent streamlining and regulatory initiatives, government has exceeded its BC Jobs Plan goal for permitting turnaround times.

Notices of Work permit applications are now processed in 55 days on average, a considerable reduction from an average of 110 days in 2011, demonstrating government's commitment to an efficient and barrier-free permitting process.

Since the BC Jobs Plan was announced in 2011, two new mines - creating more than 800 jobs - have begun production. Five more mines have been permitted or are under construction including Red Chris and Roman, which are expected to open this year, creating another 675 jobs. In addition, seven mines have received permits for major expansions which have extended their operating life and added a total of over 300 jobs.

British Columbia currently has over 20 major mines and expansions moving through the environmental assessment and permitting process.

Premier Clark proclaimed Jan. 26 to Feb. 1, 2014, Mineral Exploration week.

Quick Facts:

• The production value of mining in 2012 was $8.3 billion. In 2001, it was $2.8 billion.
• Today B.C. has 19 operating mines (nine coal and 10 metal). In 2001, there were 15 operating mines (seven coal and eight metal).
• B.C.'s mining industry and related minerals sectors employed over 30,000 people in 2012. In 2001, the industry employed 14,700 people.
• In 2012, the average mining salary (with benefits) was $121,000. In 2001, the average was $81,000.
• BC mining flow-through share tax credit will be extended, subject to the final approval of the legislature in spring 2014.
• B.C is the first province in Canada to share direct revenue generated from mining with First Nations. Three agreements have been reached and a number are under negotiation.
• New Afton mine, near Kamloops, started production in June 2012, and Mt Milligan mine, near Prince George, started production in August 2013.
• The British Columbia Geological Survey has supported the mineral exploration industry for more than 100 years. It acts as the provincial custodian of all geoscience data, providing maps and other information, delivered via MapPlace, an award-winning Internet display tool.

Learn More:

Association for Mineral Exploration British Columbia: http://www.amebc.ca/Home.aspx

Mining Association of BC: http://www.mining.bc.ca/

Ministry of Energy and Mines: http://www.gov.bc.ca/ener/

British Columbia Mining Flow-Through Share Tax Credit: http://www.sbr.gov.bc.ca/documents_library/bulletins/pit_001.pdf

A backgrounder follows.

Media Contacts:

Sam Oliphant
Press Secretary
Office of the Premier
250 952-7252

Jake Jacobs
Media Relations
Ministry of Energy and Mines
250 952-0628

BACKGROUNDER

Ministry of Energy and Mines

Exploration Numbers -

• Mineral exploration has grown exponentially since 2001. In 2001, exploration spending was $29.1 million. In 2013, it was $476 million.
• 2013 exploration spending is the second highest on record. 2012 was the highest at $680 million.
• B.C. accounts for approximately 19 per cent of all exploration spending in Canada. In 2001, that figure was less than six per cent.

Exploration Spending by Year:

• 2013 - $476 million
• 2012 - $680 million
• 2011 - $463 million
• 2010 - $322 million
• 2009 - $154 million
• 2008 - $367 million
• 2007 - $416 million
• 2006 - $265 million
• 2005 - $220 million
• 2004 - $130 million

BC Mining Flow-Through Share Tax Credit -

• Subject to the approval of the legislature, government will extend the BC mining flow-through share tax credit that was originally scheduled to expire on Dec. 31, 2013, to Dec. 31, 2014.
• The BC mining flow-through share tax credit provides an additional incentive for raising revenues for mining exploration in B.C.
• Offering flow-through shares can help companies fund resource exploration which further strengthens our economy.
• Companies can transfer unused income tax deductions to their investors through a non-refundable 20 per cent tax credit
• The tax credit reduced personal income tax revenue by $10 million in 2012-13.
• Government is projecting the B.C. Mining Flow-through tax credit to be approximately $10 million this year.

Permitting -

• As of Dec. 31, 2013, the average turnaround time for all Notices of Work (placer, aggregate and exploration) is 55 days.
• This is a reduction from 110 days in 2011 and has surpassed the BC Jobs Plan goal of 60 days.
• The turnaround time for mineral and coal exploration Notices of Work is 44 days.
• In 2013, the Ministry of Energy and Mines processed 878 permits in 2013 and 831 permits in 2012.

Media Contacts:

Sam Oliphant
Press Secretary
Office of the Premier
250 952-7252

Jake Jacobs
Media Relations
Ministry of Energy and Mines
250 952-0628