October 1, 2008

British Columbia puts up $10 million for assessment of Highway 37 power line

PRINCE GEORGE, B.C.

At the same time as a report was released last week that said building a power line in northwest B.C. could spark mining development and create 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 cautions 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 to contribute $158 million to the power line, halted construction.

Communities in northern B.C., including Prince George, have been calling on the provincial government to move 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 last 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,” Campbell said.

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 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.

The proposed 287-kilovolt power line along Highway 37 will extend 335 kilometres from Terrace to Mezidian junction and north to Bob Quinn Lake.

Canadian Press

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