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Special Report on British Columbia
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British Columbia, with a wealth of mineral riches and a supportive government, is quickly emerging as one of the most favorable places in the world for mining development.
The following is extracted from the May 2007-1 Special BC Issue
CLICK HERE to read Lawrence Roulston's Special Report on BC Companies
The increased appeal of B.C. comes at the same time that political uncertainties mount in many parts of the world. Leftist governments in parts of Latin America, on-going violence in parts of Africa, arbitrary taxes on mining and corrupt governments in some third world countries, growing racial tensions and religious conflicts are all serving to make North America a more comfortable region for investment.
A complex geological history has generated literally hundreds of metal deposits. There are a multitude of discoveries that were never developed. As the mining industry returns to the province, investors will find many of the best prospects held by the small companies.
CLICK HERE to read more about Roulston's BC Companies with Potential for Big Payoffs
Running Out of Suitable Deposits
Vancouver has been at the center of worldwide mineral exploration for decades. The political turn-around in the early 1970s that drove the mining industry away spurred Vancouver-based geologists to fan out around the world, leading to major metal discoveries in every region of the planet.
Over the past half century, the mining industry had the luxury of picking the best metal deposits in the world to be developed into mines. For much of that time, the major mining companies had free access to pretty much every part of the world. Metal deposits were often cast aside by companies that had the option of developing bigger and better deposits in other places.
Low metal prices in the late 1990s led to a near shutdown of mineral exploration. When economic activity took off worldwide over the past few years, there was a shortage of metal deposits to develop into new mines. The mining industry reacted by buying existing production. While the surviving companies are getting bigger, industry production has been flat.
After decades of exploration, most of the world has been looked at. There will undoubtedly be big, new discoveries… but not at the pace that the industry enjoyed in earlier decades as they made the first exploration pass.
As the mining industry looks for ways to expand, some of the deposits that were found in decades gone by are being re-evaluated. Shareholders of the small companies that now hold those deposits are seeing big gains in the values of their holdings.
A Supportive Government
British Columbia’s mineral exploration and mining industry produces billions of dollars for the province each year. After decades of decline, the government is now committed to further enhancing the economic benefits of mining.
The government has committed to making B.C. an ideal place to invest. The new B.C. Mining Plan has reduced mining regulations, reduced taxes and taken other steps aimed at making the province more investor friendly. British Columbia now has competitive taxe rates, reasonable mining regulations, high quality and accessible geological data and attractive exploration incentives, making it one of the most favorable places to explore.
Land claims of the First Nations, or aboriginal peoples remain a stumbling block in some areas. However, the First Nations in many areas are now embracing mining development as a way to generate jobs and financial security for their communities. The perception of widespread difficulties with land claims is largely a legacy of the past, but remains an impediment for some investors. Few companies face any real difficulty, and over time the perception will converge with reality.
The start of development of the Galore Creek mine will signal to the world that the system works and that B.C. is indeed one of the most favorable places in the world for mine development. As the mining industry returns to the province, they will find that many of the best prospects are held by small mining companies. Astute investors are already building positions in the companies best situated to benefit from the re-emergence of B.C. as a mining powerhouse.
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