Good morning, Chair and members of the committee.
My name is Tim McEwan. I'm senior vice-president of corporate affairs with the Mining Association of British Columbia, or MABC for short.
I'm joining you today from the shared, traditional, ancestral and unceded territories of the Tsawwassen and other Coast Salish peoples.
MABC represents 17 operating mines, two smelters and more than a dozen development projects in British Columbia. Mining is a major user of Canada's west coast ports and is the largest shipping sector by volume using both rail and marine modes.
Most of British Columbia's production volume is shipped to international customers in Japan, Korea, India and others, and accounted for 28%, or $18 billion, of the total value of British Columbia's exports in 2022. British Columbia's mining industry employs approximately 35,000 people in our province, with an average annual salary of $139,000.
When mines and smelters curtail operations, the impacts are felt not only by our employees but also the 3,800 businesses and suppliers in communities across the province that depend on the industry for their economic livelihoods.
Last summer's strike occurred on the heels of unprecedented supply chain disruptions during the pandemic, record wildfires and atmospheric rivers that severed rail lines and highways. The strike had a major effect on B.C.'s mining and smelting sectors.
First, it disrupted the inbound delivery of key supplies and materials for our members' operations. This included new equipment and other inputs for capital projects and materials to support ongoing operations.
Second, from an outbound or export perspective, each mining operation in British Columbia was impacted differently by the strike due to factors such as the commodity being mined, the site location and the transportation mode used to ship the commodity. A few sites were able to divert shipments to other ports, albeit with increased costs, effort and time, but other operations did not have this option available. The inability to get products to international markets caused some mines to stockpile products on site or in railcars across B.C., all with physical and financial limits to how long they could do this.
With a prolonged strike or lockout, British Columbia's mining sector risks losing international customers to producers outside of Canada. Throughout the period, international customers were frequently asking about the strike and when it would end. The longer the strike continued, it was necessary for some MABC members to plan for shutdowns or temporary layoffs.
Beyond the immediacy of the strike, disruptions also caused significant congestion throughout the supply chain that took many weeks to fully resolve. Simply put, the longer a disruption persists, the longer it takes to clear congestion, while damage is done to customer relationships and Canada's reputation as a reliable supplier.
Given the size and scope of British Columbia's mining sector, the economic and reputational repercussions for our province and all of Canada—all of these—were substantial. The strike also had cascading consequences for workers, suppliers and communities, not only in British Columbia but also in mining communities across Canada. It's important to note as well that our industry has shared objectives with the governments of Canada and British Columbia to advance more critical mineral mines and to help with climate action and national and allied security imperatives.
The critical minerals opportunity includes billions of dollars of prospective investment, thousands of well-paid, family-supporting jobs, significant partnership opportunities with first nations and new contract and economic opportunities in communities throughout the province.
Secure, certain and predictable supply chains, including fluidity through west coast ports, are indispensable in our collective efforts to grow British Columbia and Canada as a low-carbon supplier of critical minerals to domestic and international markets. Moving forward, it's clear that, if Canada wants to strengthen trading relationships and grow our export economy, including critical minerals opportunities, the federal government needs more effective options to address labour disputes impacting the national economy.
MABC sees the review initiated by the Minister of Labour under section 106 of the Canada Labour Code as an opportunity to provide these solutions. We urge the federal government to balance meaningful collective bargaining with solutions that safeguard British Columbian and Canadian supply chains and our international reputation as a preferred and reliable supplier for low-carbon critical minerals and metals.
I want to thank you today for the opportunity to provide some insights on last summer's strike at Canada's west coast ports.
I look forward to the question and answer session.
Thank you.