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British Columbia
Northern British Columbia covers about 68% of the province's landmass and is home to 354,000 people, 8% of the province's population. Resource industries continue to drive the northern economy and will continue to do so for the foreseeable future, with increasing tourism, transportation and fossil fuel development viewed as promising opportunities for the region. |
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Key Industries
Forestry
Over forty percent of the province's Annual Allowable Cut (AAC), totaling approximately 35 million cubic metres, comes from the northern interior of British Columbia. In addition, the region has 20 percent of the province's lumber mills (41 percent of the province’s annual capacity), approximately 35 percent of the pulp mills (24 percent of the annual capacity), 27 percent of paper mills (25 percent of the annual capacity), 10 percent of veneer mills (13 percent of the annual veneer capacity), 18 percent of plywood mills (18 percent of the annual capacity), and 15 percent of the chip mills (17 percent of the annual capacity).
Energy
Virtually all of British Columbia's oil and gas production occurs in the Northeast region. Gas production generated more than $5.8 billion of sales in 2006, while oil production was valued at over $1 billion. Northern oil and gas production resulted in a flow of more than $2.14 billion to government revenues.
Hydroelectricity
Approximately 25 per cent of the province’s 14,500-megawatt installed electrical generating capacity is produced by facilities in Northern British Columbia’s Peace-Williston system. A further 890 megawatts of dependable, peak capacity is owned by Alcan as part of the Nechako reservoir system in northwestern British Columbia.
Mining
Mining in northern British Columbia generated over $1.9 billion of net revenues in 2006, accounting for more than 30 per cent of provincial mining revenues. Mines in the northern region produce coal, molybdenum, gold, silver and copper. In 2006, over 70 per cent of mineral exploration in British Columbia occurred in the North, an activity that was valued at $194 million.
General
The British Columbia Major Project Inventory indicates that over two-thirds of the projects being proposed relating to mining, oil and gas extraction and manufacturing are located in the north.
In 2005, the Province provided $200 million to establish the Northern Development Initiative Trust. The Trust’s mandate is to be a catalyst for strategic economic development at the local and regional levels to achieve its mission,of helping northern BC communities create and sustain world-class industries and diversified economies. As of September 2007, the Trust has approved nearly $33 million in funding for 101 projects.
A Look to the Future
Activity at the Prince Rupert port increased from 4.2 million tonnes in 2005 to 7.9 million tonnes in 2006, a 79% increase. The Port is expected to become even more active with the recent opening of Phase 1 of the new Fairview Container Terminal facility and plans to expand the facility in the future. Prince Rupert also recently signed a formal “twinning” relationship with the Port of Ningbo in China. The growth of the Port raises the possibility of increased economic opportunities along the northern trade corridor between Prince Rupert and Edmonton.
The new BC Energy Plan will encourage new basin exploration through royalty credits and an investment in public-private resource road infrastructure. The basin off the North Coast contains an estimated 9.8 billion barrels of oil and 26 trillion cubic feet of natural gas. Total coalbed gas resource in the northeast region is estimated to be 60 trillion cubic feet. This resource is currently being evaluated by several companies.
The impacts of the Mountain Pine Beetle will continue to shape the development of the forest industry in British Columbia, particularly in the North. Through the Mountain Pine Beetle Action Plan, the Province is developing strategies to ensure the diversity and sustainability of northern communities.
The natural beauty of British Columbia’s northern region will continue to attract visitors and provide for tourism growth.
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