Province to assess northwest power line
September 26 2008 | By Gordon Hoekstra, Prince George Citizen
At the same time as a report was released Friday that said building a power line in northwest B.C. could spark mining development creating thousands of jobs, Premier Gordon Campbell said the province was taking the first step in bringing power along the Highway 37 corridor.
The report -- funded by the Mining Association of B.C. and the Northern Trust, an economic development fund -- found that a power line has the potential to attract more than $15 billion in investment and create 10,700 jobs. The report did caution that the estimates are largely based on 10 mines being built, some of which are still in the preliminary stages of development.
The province put a $400-million proposal to bring power up Highway 37 on hold last November after the Galore Creek mine, which was going to contribute $158 million to the power line, halted plans to build its mine.
Communities in northern B.C., including Prince George, have been calling on the provincial government to keep moving forward on the power corridor by continuing, at a minimum, an environmental assessment needed before construction can start.
Campbell promised to do just that in a speech at the Union of B.C. Municipalities' annual convention in Penticton Friday, saying the province would put up $10 million for the assessment. "The communities in the North have a vision to further open their region to economic opportunities on a global scale, and today I want them to know that we share their vision and we are going to pursue the Northwest Transmission Line," said Campbell.
Mayor Colin Kinsley, who heard the premier deliver his message in Penticton, welcomed the announcement. "It's what we've been asking for," said Kinsley, referring to a North Central Municipal Association resolution passed last May calling the power line critical to the communities of northwest B.C.
Although the proposed mines would be built in northwest B.C., 500 to 800 kilometres northwest of Prince George, the projects are viewed as important to sustaining and growing the city's role as a mining service and supply centre.
Acknowledging that not all of the 10 proposed mining projects may get off the ground, Northern Trust CEO Janine North noted that none will start without the transmission line.
That's why it is so important to get the transmission line in place while mineral prices are high as a result of an upswing in the commodity cycle, said North, who is headquartered in Prince George. Bruce Sutherland, chair of the Northern Trust, said the announcement was a huge plus for mining in northern B.C. because it sends the right signal to the global mining community.
Sutherland owns WolfTek Industries, an industrial manufacturing firm in Prince George that is trying to break into the mining sector. He said the mining sector offers a much-needed economic diversification opportunity and alternative to the forest sector in northern B.C.
There are numerous spinoff benefits to the northwest mining projects for Prince George, including supplies and servicing, and transportation, said Sutherland. "You name it, it will flow through Prince George. Why? Because we're the hub -- north, south, east and west."
The proposed 287-kilovolt power line along Highway 37 will extend 335 kilometres from Terrace to Mezidian junction and north to Bob Quinn Lake.
The mining association and northern trust's report -- which contemplates an even longer line -- noted the potential benefits are dependent on the mining projects going into production. Reaching production is, in turn, dependent on mine feasibility, the continued strength of commodity markets, electrical power and addressing the concerns of First Nations.
Bill Adsit, president of the Tahltan Nation Development Corp., said that in principle they support the new power line. "However, first there must be a process that considers all potential social, cultural and environmental factors," he said.
NDP energy and mines critic John Horgan questioned why the province is putting up $10 million in taxpayers money for the power line when it said it was not going to do so until mining companies invested in the project.
Issues around voltage of the line and First Nations concerns still haven't been resolved, so there's plenty to do without subsidizing the mining industry just yet, said Horgan. "I don't want northerners left with the impressions the NDP is not interested in mining development for communities and First Nations, but it should be driven by the private sector, not the public sector," said Horgan.
