Red Chris Mine in northwest B.C. began operation this summer after protests and multiple reviews of its tailings facility. It processes one of the world's largest copper-gold deposits

Hydro break proposed for struggling mines

Deferred electricity payments would be repaid with interest, Energy and Mines Minister Bill Bennett says

The B.C. government is considering a payment deferral program for mines’ electrical bills, to help keep mines running during an extended slump in metal and coal prices.

Energy and Mines Minister Bill Bennett is taking a proposal to cabinet that would allow mines to defer a portion of the BC Hydro bills, with repayment to begin when prices of copper and other mineral commodities reach a certain stage.

Imperial Metals announced this week that Huckleberry Mine. a copper mine south of Smithers, is suspending pit operations and laying off 120 of 260 employees. Bennett told Black Press the continued slump in world commodity prices means more job losses are on the way.

Electricity deferrals were used by the NDP government in the 1990s and Social Credit in the 1980s. Bennett said unlike the NDP program that varied rates with commodity prices, he is proposing that mining companies repay deferred funds with commercial interest, with no net burden to taxpayers or BC Hydro ratepayers.

“If we can’t figure out something to help reduce operating costs, there’s going to be not just layoffs, there’s going to be mines shutting down,” Bennett said. “I don’t expect bankruptcies and I don’t expect shutdowns forever, but you definitely would see temporary shutdowns until commodity prices come back. And you may see that anyway, even with the program.”

The province loses income tax revenue and BC Hydro loses power sales when industries scale back or shut down, which would put pressure on government services and BC Hydro rates. That gives the province incentive to use a deferral program, he said.

Bennett vowed that the rate deferral would not be approved if BC Hydro price caps in the current rate plan were affected.

Hydro rates jumped nine per cent in 2014, followed by annual increases of six, four, 3.5 and three per cent in the 10-year rate plan. Starting with the proposed four per cent increase in 2016, the independent B.C. Utilities Commission (BCUC) is reviewing if rate increases can be lower than what is capped in the rate plan.

 

Just Posted

Trial date delayed in case of slain Oak Bay sisters

Case of Andrew Berry, charged in deaths of daughters, will reconvene in three weeks

GALLERY: Snow Day in Oak Bay

Giant snowmen, tobogganing, and a quiet golf course

BC SPCA proposes fines for animal mistreatment, reduction in commercial trade

Animal welfare group’s ideas brought to Victoria councillors

Duncan family says care home switched mom’s cat with robot cat

Staff alleged to have said they were taking cat for bath, then replaced her with robotic stuffed toy

New Victoria graving dock will offer high-paying jobs

New facility will reuse and treat any water required for repair process

GALLERY: Snow Day in Oak Bay

Giant snowmen, tobogganing, and a quiet golf course

New charges against ex-Trump campaign associates

More charges were laid Thursday against President Donald Trump’s former campaign chairman and his business associate

Sooke mom hopeful for funding to treat child’s debilitating arthritis

Jillian Lanthier ‘prays’ for $19,000 per-dose drug for her son

Man accused in death of Winnipeg teen Tina Fontaine not guilty

Raymond Cormier was accused of killing Indigenous 15-year-old and dumping her body in the Red River

Okanagan real estate agents brace for speculation tax impact

“There’s a real potential for a domino effect to hurt the market in Kelowna.”

Human remains found near Campbell River

Human remains were found in a rural area outside Campbell River, RCMP… Continue reading

Alberta drops B.C. wine boycott, Notley says Horgan ‘blinked’ on pipeline

B.C. government announces court reference on proposed diluted bitumen restriction

Tofino Bus will cover Victoria–Nanaimo route after Greyhound announces cut

Although its name says ‘Tofino’, this bus company serves all of Vancouver Island

UPDATE: Northern Health dealing with lack of 121 registered nurses

Auditor General says officials need to improve internal management, track effect of new policies

Most Read