AME BC History - 1980s

The 1980s, under President D.K. Mustard, began on a difficult note. On February 27, 1980, the government unilaterally declared a seven year moratorium on uranium exploration and terminated the Bates Commission on Uranium following AME BC’s submission to the commission and a later meeting with Cabinet. The first of many meetings on the future development of South Moresby Island began with AME BC being given only an “observer” status.

On April 18, 1980, past president Ed Scholz died and with the cooperation of Placer Development, AME BC created the Ed Scholz medal, awarded annually for excellence in mine development. Manager F.G. Higgs resigned during the summer of 1980 to be replaced by acting manager Dave Wilson, and then J.M. Patterson that fall. Two briefs, Access to Minerals and Deregulation, were presented at the 1980 Mines Ministers Conference.

Also in 1980, many members assisted in the BC government prospecting schools and started a Prospectors’ Tent. Schools were held throughout the province and continued through the 1990s.

AME BC’s flagship publication, Mining Review, made its appearance with a premiere issue in January/February 1981. Published by Naylor Communications Ltd. in North Vancouver, it had 66 pages, plus an 8-page Chamber Report. The feature article, “Canada’s North: A Development Nightmare” focused on the need for governments to develop rational land use plans to address the growing conflict with government and regulatory bodies and with other resource users.

AME BC, accompanied by the Mining Association of British Columbia, presented a brief in April 1981 to the Cabinet Committee on Economic Development showing how government expenditures on services to the exploration industry such as mineral titles and geological services had failed to keep up with inflation. The Slocan Valley Planning Study began early in the year. Chamber membership revenues peaked in 1981 but, like the mining industry, began to decline. This was a significant loss to AME BC as by far the bulk of its funds came from the mining industry.

Stan Leaming took up the duties of the front desk at AME BC in January of 1982, keeping up the association’s tradition of providing information and education. In March of the same year, AME BC, under its new president, R.J. Cathro, sent a brief entitled “The Decline of the Canadian Mining Industry During the 1970s” to the Hon. Judy Erola, Minister of State (Mines) beginning what has become an ongoing effort to inform politicians of the value of mining and the damage that can be done by poor federal and provincial mining policies. AME BC wrote and published Canada’s first Exploration Safety Manual and upgraded the mezzanine. During 1982, Revenue Canada began a reassessment of many directors and employees of Vancouver based junior mining companies and AME BC began its lobby to get fairness back into the tax system.

Early in 1983, AME BC introduced the Hon. Judy Erola to the junior mining community of Vancouver and the Vancouver Stock Exchange. Shortly thereafter, with her help, AME BC met with the Minister of Revenue Canada to present AME BC’s view on the reassessment practices. In September of that year, Bill Plumb replaced Stan Leaming at the front desk. AME BC presented a brief to the 1983 Mines Ministers Conference on the Importance of the Vancouver Stock Exchange and Junior Mining Companies.

In 1984, the Annual General Meeting of AME BC became a part of the Cordilleran Roundup, a Chamber-sponsored affair involving provincial and federal geological surveys and the mining industry. Introduced for the first time was the core shack, containing exhibits of core, rock samples and maps of interesting prospects. This concept was quickly copied by other organizers of similar conferences. Meetings continued throughout the year on a number of environmental issues such as South Moresby Island and the Slocan Valley. President D.C. Rotherham and members of the executive committee met with Hon. Stephen Rogers, Minister of Mines, and briefed him on the declining competitive position of British Columbia regarding mineral exploration and mining. By the end of 1984 most of the oil and gas companies who became mineral explorers and many of the well established major mining companies no longer explored in British Columbia. Late in the year, the second floor of AME BC was completely renovated.

The Cordilleran Roundup, which proved to be so successful in 1984, was repeated in January 1985, but moved from the Holiday Inn to the Hotel Vancouver to accommodate the 850 who attended and provide room for commercial displays. Much of 1985 was occupied with improving rules and regulations of junior mining company financing, in particular the flow-through share concept. The provincial Wilderness Advisory Committee, which was set up to look at South Moresby Island and a number of other environmental issues, occupied much of AME BC’s time. In the fall, AME BC met with the Hon. Hugh Curtis, Minister of Finance, pointing out that British Columbia was no longer competitive in Canada, and presented him with a number of options to help make it more competitive. Junior mining companies were now spending a much larger percentage of the exploration dollars being spent in Canada.

In 1986, the Cordilleran Roundup, now an annual conference, was attended by about 1,000 people. Pat Dunn, secretary and accountant for 17 years with AME BC, retired in March. The Wilderness Advisory Committee published its report, The Wilderness Mosaic, for the Ministry of Environment in March. The report proposed over a dozen study areas to be designated as recreation areas, including the areas surrounding the Tatshenshini, Alsek and Stikine rivers. The protectionist movement in BC gained momentum with the report’s publication and a significant part of AME BC’s time was taken up with representations concerning withdrawals proposed for parks, buffer zones, and recreation areas. Aboriginal land claims became a greater issue during 1986 with President C.A. Aird and other mining officials meeting with the Department of Indian Affairs and Northern Development and other government officials in Ottawa. In September of that year, a Chamber initiative, a conference entitled “The Canadian Mineral Industry: Emerging Challenges and Opportunity” was successfully carried out at the Banff school. Flow-through shares and their importance to the mining industry was the focus of an Ottawa visit in November by Chamber officials.

Exploration expenditures in BC were up in 1987. Several contributing factors for the improvement were responsible, including the federal government’s pending free trade agreement, and better base metal prices. The Mineral Development Agreement between Canada and BC signed in 1984 also committed the government to spend $10 million over five years on mineral development programs in the province and allowed the production of many new geological, geochemical, and geophysical surveys. There was also praise for Bill 66, the Mineral Tenure Act, which combined the former mineral and mining (placer) acts into a single piece of legislature. Twelve potential metal mines were in the development review process.
In 1988, exploration expenditures hit a record $227.6 million. In addition, projects under development during the year were expected to increase BC’s gold production of 425,000 ounces by 50%, with significant additional silver and asbestos production. New project developments involved estimated capital expenditures of $270 million and estimated employment for more than 900 persons. Land use issues were numerous and varied and usually involved the alienation of Crown lands for single use purposes, specifically excluding mining and exploration activity. AME BC’s BC Land Alienation Committee spent a considerable amount of time on these issues. AME BC’s Taxation Committee also addressed revisions to flow-through share issues and provided useful input to Energy, Mines and Resources officials regarding draft regulations and administration of the new Canadian Exploration Incentive Program. Representation by AME BC’s BC Mining Laws Committee resulted in modifications to the new Mineral Tenure Act and Regulations. The Public Mine Financing Committee maintained liaison with the Vancouver Stock Exchange and the Superintendent of Brokers. The Cordilleran Roundup in early February attracted 1,500 participants. AME BC’s President was Nick Carter and staff included Jack Patterson, Managing Director; Dan Pegg, Information Officer; and Sheila Holmes, Secretary. Pat Dunn, though retired, still assisted with accounts.

The mineral exploration and mining sector had a transitional year in 1989. Major modifications to flow-through share financings contributed to reduced levels of activity by junior companies and major companies assumed a more dominant role. Although mineral production increased to $4.1 billion and five new mines opened, exploration expenditures dropped due to lower gold and silver prices and difficulties experienced by junior exploration companies in securing equity financings. AME BC’s 5,000 copies of its Safety Manual printed in 1982 had sold out by 1988, and arrangements were made for a printing of 9,500 copies of a revised manual with generous assistance of a significant grant from the BC Ministry of Energy, Mines and Petroleum Resources. The Building Committee coordinated a $225,000 renovation of the AME BC premises. The BC Land Alienation Committee had another busy year involving representations concerning a number of potential regions, including the Lower Stikine River Recreation Corridor, which through the efforts of this committee and others, evolved into the Stikine River Management Committee, in recognition of other resource values in the region. AME BC’s Executive Committee focused on representations with government on issues including renewal of Mineral Development Agreements, changes to flow-through share financings, and proposed withdrawals of land from mineral exploration and mining.