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

Houseboat company sues province, Sicamous over 2012 flooding

Sixty-day trial now underway in BC Supreme Court in Kelowna

Open letter to Premier John Horgan

LETTER: Group called First Things First Okanagan promotes action on climate change

Salmon Arm RCMP arrest one male on child pornography charges

Search of Canoe residence leads to seizure of computers

Sicamous senior falls victim to timeshare scam, loses thousands

RCMP warn of common phone-fraud technique employed

Truck burns on Trans-Canada Highway near Chase

Trailer ignites, creating smoke seen in neighbouring community

Lt.-Gov. Guichon believes she made the right decision

Outgoing Lt.-Gov Judith Guichon said her most memorable moments weren’t surrounding the election

Okanagan Eats back for another year

Okanagan Eats features vendors, chef demos, and so much more. This isn’t your average food show.

VIDEO: Smokers talk pot rules at annual 4-20 event

Annual pot protest-meets-festival in Vancouver attracted hundreds to vendors, concert

New funds, recruits set to alleviate B.C. sheriff shortage

The Government of British Columbia announced new sheriff graduates, funding for more classes

Kelowna General Hospital receives donation towards JoeAnna’s House

Shuswap Hospital Foundation contributes $15,000 to project

Farnworth says five years too long for feds to deal with organized crime in medical pot

Needs to be dealt with much sooner than that, B.C. Public Safety Minister says

UPDATED: Unions, CP Rail come to agreement, avoiding work stoppage

Locomotive engineers, conductors and signals specialists seeking new collective agreements.

B.C. woman known to hitchhike around province missing

Aislynn Hanson, 18, last seen April 13; known to travel throughout B.C. by hitchhiking

B.C. court relies on Facebook to track down missing defendant

A court in Princeton, B.C. relied on Facebook to track down a B.C. missing his court date

Most Read