The continued drop in commodity prices – particularly metallurgical coal and copper – has hit British Columbia’s mining sector with a number of mines being put into care and maintenance until prices recover, the annual PwC BC Mining Industry Survey for 2015 has found. Yet there are signs that the worst could have passed as some companies are now advancing mining projects.
“What we saw in 2015 was another tough year of continued downturn in commodity prices, which remain the biggest threat to the industry’s profitability,” said Mark Platt, Partner and Leader of PwC’s BC mining practice.
“Still, BC’s mining industry is proving resilient. While most mining companies have been cutting spending and curtailing operations to held withstand the current price environment, other are raising money and advancing projects.”
According to the survey, gross mining revenues fell to CAN$7.7 billion in 2015, compared to CAN$8.2 billion in 2014. Cash flow remained steady, however, at CAN$1.7 billion. CAPEX fell to CAN$1.2 billion in 2015 from CAN$1.5 billion in 2014.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/11052016/another-tough-year-for-bc-miners-2016-746/