B.C.’s Mining Suppliers.
Economic benefits from mining operations extend far beyond mine sites and the communities that surround them. In fact, many B.C. communities benefit from a single mining operation. For example, Copper Mountain Mine near Princeton had a feasibility study prepared by an engineering firm in Vancouver, conveyor systems supplied by a company in Surrey, belting from a firm in Burnaby, explosives from a company in Williams Lake, fuel and steel balls from companies in Kamloops and haul truck tires from a company with a head office in Vernon.
Mining suppliers can generally be separated into three categories:
- Suppliers (heavy equipment sales, wear-parts manufactures, fuel service providers)
- Contractors (construction, transportation)
- Consultants (engineering, taxation, legal)
Mining.com has identified over 1,100 supplier firms active in B.C. in 2020.
Economic and Social Impacts
Various studies conducted in B.C. and in other provinces have demonstrated that for every direct job at a mining operation at least two indirect supplier jobs are supported. B.C. studies have also demonstrated that B.C. mining suppliers have a significant impact on the B.C. economy each year.
- PwC’s Economic Impact Analysis, published in 2011, found that in 2010 mining suppliers generated $2.7 Billion of the estimated $8.9 Billion total economic output of B.C.’s mining industry and generated $253 Million in federal, provincial and municipal taxes.
- The 2011 study also found that in 2010, B.C. mining operations supported 8,195 direct employees and 16,590 indirect supplier jobs (not including outward transportation workers).
- The One Province, One Economy study commissioned by MABC and MSABC in 2019 found that 3,730 supplier, contractor and consultant firms located in 215 B.C. communities benefited from $2.9 Billion in spending by 17 major mines and 2 smelters in 2018. This does not include spending by smaller operations or for exploration and development projects.
- $265 Million of the spend noted above went to 120 Indigenous-affiliated suppliers located in communities across B.C.
Other studies include:
- Coal Association of Canada: Economic impact analysis of the coal mining industry in British Columbia, 2013
- Canadian Association for Mining Equipment and Services for Export (CAMESE): Pan-Ontario mining supply and services sector economic impact study, 2014
- Saskatchewan Industrial and Mining Suppliers Association (SIMSA): Economic Impact Analysis of the Saskatchewan Mining Supply Chain, 2016
MSS and METS
The name used to describe the mining suppliers sector may be different depending on the jurisdiction. For example, the term Mining Supply and Services Sector (MSS) is frequently used in Canada while the term Mining Equipment, Technology and Services Sector (METS) is frequently used in Australia.