Two Chinese coal companies and a steel maker are working with a Chinese company based in Vancouver to develop hundreds of millions of dollars worth of unique underground mines in northern B.C. that will provide thousands of jobs.
"It's a very big deal," said Jobs, Tourism and Innovation Minister Pat Bell from China on Tuesday, where he met with the companies to discuss moving the projects' environmental assessment and permitting on a dual track.
The province introduced the process to provide mining companies the opportunity to have the assessment and permitting take place simultaneously, although few companies have taken advantage of it, noted Bell, the MLA for Prince George-Mackenzie.
The private Chinese companies -- which already have their financing in place -- are interested in using the dual track because they want to get the projects up and running quickly, said Bell, who is in China largely to promote the use of wood in apartment buildings.
The Chinese companies include coal producers the Kailuan Group and Huiyong Group, and steel company the Shougang Group. The trio are working with Canadian Dehua International Mines Group Inc. based in Vancouver, headed by president Liu Naishun.
Canadian Dehua has leased several mining properties in northeastern B.C., including the Gething, Murray Ridge and Bullmoose properties.
The companies want to enter the six-month environmental process late this year or in early 2012, with construction taking place in 2012 or 2013, said Bell.
The three underground mines would add eight million tonnes of coal production, approximately doubling the production in the area.
Each underground mine would bring with it 300 or 400 jobs, or more, plus support another 5,000 to 6,000 spin-off jobs, said Bell.
The companies bring specific expertise in underground coal mining, and the projects may not have been developed without that knowledge, noted Bell. There is only one underground coal mining operation in British Columbia, on Vancouver Island. The coal mining projects in northeastern B.C. -- in the Tumbler Ridge area, about 175 kilometres directly north of Prince George -- are all open pit mines.
The Tumbler Ridge coal area produces metallurgical coal, important in steel making, and in demand in China's surging economy.
Prince George, a supply and service centre for the mining sector, would be expected to benefit from new mines in northeastern B.C. There are also Prince George residents who already work in the coal mining sector in the Tumbler Ridge area.
Bell also toured the site of a wood-frame building project in Tianjin, about 160 kilometres southeast of Beijing, and took part in proceedings at the Green Building Show where B.C. and Canada have another demonstration project.
Lumber exports to China reached historic levels in 2010, shipping 2.8 billion board feet, nearly double the amount from 2009. This year, the province hopes to top four billion board feet to China.
Bell said he would like to build economic relationships in others sectors in China, including tourism and international education.
