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BC tracks third highest expenditure in mineral exploration in a decade

Photographic Portrait of Iain Thompson
Iain Thompson

EY Canada Mining and Metals Consulting & West Leader

01 Mar. 2024
Related topics
Mining and metals
Energy and resources

Robust spend bodes well as the country prepares to meet critical mineral strategies and support the global energy transition.

Co-authored by:

British Columbia’s exploration industry has found itself resilient in the face of global headwinds, remaining strong through the impact of climbing interest rates, economic turbulence and geopolitical tensions that have plagued the industry in the years since the onset of the COVID-19 pandemic.

Despite a troubling year of firsts, however, with drilling decelerating and exploration marking its first decline in almost a decade, BC still managed its third-highest exploration expenditure in 10 years, thanks in part to the continued strength of the copper exploration sector and the province’s Northwest region, where a surge in exploration activity was responsible for 69% of spend in 2023.

How EY can help

But with early-stage exploration down 10% from 2022, and tightening financing conditions taking a toll on grassroots exploration, it will be critical that the industry stay the course to meet the demand for metals needed to support decarbonization efforts for the future.

 

The British Columbia Mineral and Coal Exploration Survey 2023 analyzes the survey responses, financial reports and press releases from 175 mineral and coal companies operating in BC, responsible for 244 projects across the province. The report provides a deep dive on:

 

  • How provincial spending compares to global trends
  • Spending intentions, the cyclicity of exploration and the important role BC will play in mineral exploration over the coming year
  • The impact of the federal critical mineral exploration tax credit on copper and coal mining
  • Lifecycle trends, in particular the divide between junior and larger exploration projects and their differing landscapes

BC tracks third highest
expenditure in mineral exploration
in a decade

 

Insights from the BC Mineral and
Coal Exploration Survey 2023

Download report

Summary

While headwinds prevail, and economic and geopolitical unrest continue to place pressure on exploration budgets, the need for new resources and sustainable pathways to production will demand continued exploration as the mining industry’s interests evolve to meet net-zero and electrification objectives.

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    About this article

    Photographic Portrait of Iain Thompson
    Iain Thompson
    EY Canada Mining and Metals Consulting & West Leader
    Strategy and transformation consultant. Solution architect. Diversified, seasoned leader.
    Related topics
    Mining and metals
    Energy and resources

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