Deep in deficit, wrestling with a stalled economy and under the threat of American tariffs, B.C.’s eco-focused New Democratic government has turned to an unlikely economic ally: the mining sector.
Premier David Eby has peppered his speeches over the last two months with support for new and expanded mines. His government is poised to introduce legislation within weeks to fast-track at least four major mining projects, with the rationale they’ll generate much-needed jobs and revenue.
“The success of our natural resource sector, the mining sector and your success as prospectors is key to the success of our province as a whole,” Eby told the Association for Mineral Exploration (AME) Roundup conference on Jan. 23.
“I believe we’re at a watershed moment as a country, and certainly a key moment in the province, where there is a consensus about the need to accelerate to ensure we’re developing these resources so we ensure prosperity for a country as a whole.”
In his latest cabinet, Eby created a dedicated Ministry of Mining and Critical Minerals with a mandate to reduce the average 10-year environmental approval process for a new mine to a new globally competitive timeline, and then enshrine that in legislation as a guarantee for investors.
In his throne speech last week, the premier described mining and natural resources as “foundational to the success of our province” and part of a new approach to “unlock the incredible potential here in British Columbia.”
It is, to put it mildly, quite a pivot for the B.C. New Democrats.
Until recently, most NDP MLAs had never even seen a mine. Almost all the party’s seats are located in urban Metro Vancouver and Vancouver Island, far away from the interior and northern communities where mines are located. The NDP had for years lumped mining in with forestry and natural gas as a dirty relic of the province’s past, not aligned with a future of renewable energy, land protection, Indigenous reconciliation and aggressive climate goals.
But several separate threads have come together to flip that dramatically.
B.C. has a wealth of critical minerals, including silver, copper, nickel, cobalt and molybdenum. Its “golden triangle” of mining and exploration northwest of Stikine is home to much of the country’s copper reserves, and a massive amount of gold.
Eby began noticing the industry in mid-2023, when then-U.S. President Joe Biden introduced a $500-billion investment in clean technology such as solar panels, electric vehicles and wind turbines. Biden cited Canada’s abundance of critical minerals vital to building the needed electronics, batteries and circuitry, saying the country could be a great partner to replace the unreliable and hostile China. In response, Eby started work on a new critical minerals strategy.
Two years later and it is now the Americans, under President Donald Trump, who have become the unreliable and hostile partner.
Eby has moved to use critical minerals as counter-leverage, citing things like germanium. The U.S. military needs it for night vision goggles, but China has banned any exports to the U.S. The only other source is at a smelter in Trail, B.C., operated by Teck Resources.
“If the U.S. doesn’t get germanium from Canada, it can’t get it anywhere,” Eby threatened in January.
Mining has grown into a key pillar of B.C.’s response to Trump.
“We have a huge advantage here in British Columbia with our geographic positioning,” Eby said earlier this month. “With the instability that the Americans seem committed to create in the global economy, is an opportunity for us to build new relationships and to offer that stable, responsible, consistent supply of critical minerals, metals and other materials around the world.
“We know that we have what the world needs, and we’re going to use that to our advantage to strengthen our economy here at home and strengthen the Canadian economy as a whole.”
The sheer economic impact of mining is another subtext for the B.C. NDP’s sudden support. The Eby administration has run the government from an almost $6-billion surplus in 2023-23 to a projected record $9.5-billion deficit in 2024-25.
B.C. has 17 proposed mining projects on the books, with the potential to bring in $36 billion in investment, $11 billion in tax revenue and $23 billion in labour income for workers. Mining represents an economic life raft for provincial New Democrats in an ocean of red ink.
Still, the abrupt pivot in the third term of government runs the risk of clashing with the NDP’s earlier priorities for a nation-leading pollution reduction climate plan, and Indigenous consultation and consent on natural resource projects. Already, environmental groups and Indigenous leaders have warned that fast-tracking mines can’t come at the expense of both previous commitments.
In addition, the mineral exploration sector is decrying the government’s new mineral staking system, which requires First Nations consultation and could reduce the exploration required for new mines. It’s calling for a change before the new rules come into effect in late March.
In the meantime, the Eby government appears to be going full steam ahead on its larger mining goals. The premier told the sector in a speech last month that he’s prepared to tackle the Indigenous consultation and environmental issues to help it grow at a record pace.
“I want to tell you that is a core priority for every minister, for every mandate letter, it is a focus,” Eby said.
“We need to grow our economy, we need to expedite permits, we need to get metals and minerals out of the ground.”
National Post
Rob Shaw is a veteran political reporter for CHEK News, based at the B.C. legislature in Victoria. He’s the co-author of the national bestselling book, “A Matter of Confidence,” and host of the weekly podcast Political Capital.