NEWS RELEASE
Mineral Explorers Press for Fair Market Compensation in Flathead
Land Use Planning and Existing Legislation Continueto Take Backseat to Special Interests
Vancouver, BC – February 16, 2011 – Today the Association for Mineral Exploration British Columbia (AME BC) expressed serious concerns regarding an agreement on the protection of theTransboundary Flathead Watershed Area. "AME BC remains appalled by the lack of due process in reaching a timely and fair compensation agreement forthe taking of mineral titles in the Flathead", stated Gavin C. Dirom,President & CEO of AME BC. “Equally galling is that the Governor of Montanaannounced compensation for Canadian interests on Canadian soil at a pressconference on February 14 - before the agreement was signed.”
"Governments on both sides of the border are now playing the role of broker between parties,”continued Mr. Dirom. “The responsibility really resides with the provincial government for taking the original decision in February 2010 to ban mining and energy development in the Flathead. This lack of leadership and lack of openness and transparency from our provincial government concerns us. AME BC is hopeful that a new premier in BC will resolve this matter in a swift and fair manner so that we can all move on to a more certain and collaborative future of responsible mineral resource development."
After acquiring the legal rights and appropriate permits, mineral title holders had invested in the Flathead, in good faith, under an existing land use plan that welcomed mineral exploration and development in a region estimated to contain $7 billion of undeveloped sub-surface resources. Fair market compensation for the taking of these mineral title rights is encapsulated within provincial regulations. Under an agreement signed on February 15, the Nature Conservancy of Canada and the U.S.-based Nature Conservancy will contribute $9.4 million to implement environment protection provisions that include the cost of addressing some of the existing mineral, oil and gas, and coal tenures. In the summer of 2010, a previous estimate of the value of “sunk costs” in payments made to government was in the order of $17 million; AME BC has repeatedly expressed concern that these costs do not equate to fair market compensation. “Receiving a fraction of sunk costs is like winning the lottery jackpot, having the lottery corporation change its rules,and only refunding the cost of the lottery ticket to you,” said Mona Forster, Chair of AME BC. “Only yesterday, we thanked the government for its recognition of the role mineral exploration and mining play in our province in their provincial budget address. Today, it has been confirmed that broader stakeholder consultation takes a back seat to backroom negotiations between special interest groups and neighbouring governments that demand and get what they want - regardless of existing legislation or science-based land use planning.
“Our provincial government has willingly walked away from billions of dollars of undeveloped sub-surface resources, flouted its own regulations, and chosen to elevate the interests of organizations resident outside of BC and Canada over the interests of British Columbians.”
About AME BC:
AME BC is the predominant voice of mineral exploration and development in British Columbia. Established in 1912, AME BC represents thousands of members including geoscientists, prospectors, engineers, entrepreneurs, exploration companies, suppliers, mineral producers, and associations who are engaged in mineral exploration and development in BC and throughout the world. Through leadership,advocacy, and partnerships, AME BC promotes a healthy environment and businessclimate for the mineral exploration industry.