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

Terrace users on Facebook post warnings about vehicle break-ins

RCMP say it’s important to always lock your doors

Oil tanker ban to be reviewed by committee

Indigenous groups for and against Bill C-48 travel to Ottawa to influence the Senate’s decision

Supportive housing project delayed until end of winter

Rainy conditions have stalled groundwork for the 52-unit development on Olson Avenue

Tyler Dozzi breaks national record, ‘running like a madman’

Terrace runner sets new time in Boston in his last U20 race

B.C’s salmon advisory council skips Terrace

Public engagement tour excludes all non-coastal communities

Omar Khadr wants changes to bail conditions

‘My life is held in suspension’, says the former Guantanamo Bay detainee

Lions announce seven members of coaching staff not coming back for 2019

The operational moves come two days after the Lions announced DeVone Claybrooks as the team’s new head coach

$12K awarded to atheist family who oppose Christmas, Hanukkah in B.C. classroom

Gary Mangel,May Yasue said holidays, Remembrance Day and Valentine’s Day not appropriate in preschool

Coach accused of sexual assault says apology letter was misinterpreted

Dave Brubaker has pleaded not guilty to one count of sexual assault and one count of invitation to sexual touching

Give the gift of nature this holiday season

Please don’t be mad, but I bought you a moose

Aboriginal poet faces backlash for calling out NHL-themed totem poles

Rebecca Thomas says she received backlash for asking a drugstore chain to remove NHL merchandise

No plans yet for free WiFi on BC Transit buses

BC Transit says they are monitoring the roll-out of free WiFi on Translink vehicles

Some Kotex tampons recalled in Canada and U.S.

In some cases, tampon users sought medical attention “to remove tampon pieces left in the body.”

Sex-assault squad investigated eight incidents at Toronto all-boys’ school

The interim president of a Roman Catholic all-boys school rocked by student-on-student abuse allegations said the football program was cancelled for next year.

Most Read