Managing Director Margareta Dovgal provides recommendations to legislators on forestry, mining and LNG.
Margareta Dovgal, Resource Works' Managing Director, appeared before the BC Legislature’s Select Standing Committee on Finance and Government Services in Spring 2023. The Committee invited input on the government’s next (2024-25) budget. Here are some of the key points Margareta made about the natural resource economy’s value to British Columbians.
On forestry:
“We're urging the government to look at ways it can help the sector along in a time of change and transition and to evaluate ways the fibre supply can be improved so that working families and working communities can maintain . . . critical opportunities.”
On mining and mining innovation:
“We know that globally we're going to need to triple, and quadruple in some cases, output of some of these critical minerals like copper. If BC wants to be a part of that picture, we actually need to permit and build these mines at the pace that they are needed.”
On LNG:
“Uncertainty surrounding power supply is contributing to a major part of uncertainty in the sector right now. We're urging that government considers ensuring the budget 2024 sends a clear signal that British Columbia supports these world-class projects and wants more of them built.”
Margareta’s remarks and comments by Committee members:
Margareta Dovgal: I'm Margareta Dovgal. I'm the managing director of the Resource Works Society. We're based in Vancouver, and we've been around for ten years.
Before I start with my recommendations, I wanted just to acknowledge that I'm grateful to be here on the traditional territories of the lək̓ʷəŋən people, also known as the Esquimalt and Songhees Nations.
With respect to our organization, we've been involved with mining, forestry and oil and gas as an advocacy non-profit for about a decade now. Through consultation with many of our stakeholders, we've been able to formulate the following three recommendations.
First of all, the government's vision of modernizing forest policy in BC should be reviewed and amended to ensure that not only the policy aligns with the needs of industry workers and communities, but also that the sector can actually deliver on its full potential contribution to the provincial tax base.
The second recommendation, which we'll go into detail on as well, is supporting mining innovation through adequate dedicated funding being allocated to the process of permits.
The third recommendation will be ensuring that enabling electrification infrastructure is being built and adequately funded so that the liquefied natural gas industry (LNG) in BC can succeed.
Recommendation #1:
We’re seeing some unprecedented declines in jobs, unprecedented uncertainty for forestry communities. A lot of that is being triggered by massive challenges with fibre supply here in BC. We see that the harvesting and lumber levels are actually below what was seen during the 2009 recession, which is a far cry from the phenomenal output we had during the pandemic, as lumber demand soared worldwide. Those communities were able to see some real benefits.
But we are hearing, as well, that many communities and mills have gotten the memo that innovation is needed. There's a transition happening right now. But if they're not able to keep working, they're not able to keep people employed.
Those who have the skills and talent to keep these mills and these communities operational, then, will lose those opportunities, and communities will be hollowed out. So we're urging the government to look at ways it can help the sector along in a time of change and transition and to evaluate ways the fibre supply can be improved so that working families and working communities can maintain these critical opportunities.
Recommendation #2:
For the second recommendation around mining and mining innovation, there's substantial acknowledgment through several previous budgets, including budget 2023, that critical minerals are a major part of the BC opportunity to help the world. We know that globally, we're going to need to triple (and quadruple in some cases) output of some of these critical minerals like copper. If BC wants to be a part of that picture, we actually need to permit and build these mines at the pace that they are needed.
We're really encouraging government to fix the status quo, which is largely affected by lengthy permitting delays. We see estimates from 10, 12 and even 15 years in contrast to more competitive jurisdictions. In fact, according to the Fraser Institute, our mining investment attractiveness globally ranks about 15th, just slightly ahead of Morocco. Jurisdictions like Nevada, Western Australia, Saskatchewan, Quebec, they rank far higher and that's where investors go.
If we want to take advantage of these opportunities for British Columbia, we need to do everything we can to improve the permitting process and do so without compromising on environmental protection, and also ensuring that Indigenous nations have the capacity to make informed decisions and participate in shared decision-making on critical minerals projects.
Recommendation #3:
The third recommendation is around electrification for LNG. The government's energy action framework recently announced mandates that proposed LNG facilities must pass an emissions test and have a credible plan to achieve net-zero emissions by 2030. While some projects like Woodfibre LNG do have such a plan, others do face challenges without a guarantee of sufficient power supply from BC Hydro for electric drives, which are needed to produce a net-zero LNG in many cases (not all of course).
This uncertainty surrounding power supply is contributing to a major part of uncertainty in the sector right now. We're urging that government considers ensuring the budget 2024 sends a clear signal that British Columbia supports these world-class projects and wants more of them built. Partially, of course, this does come down to permitting too.
There is a need for increased collaboration among federal, provincial and municipal governments to overall expedite the building of these projects. If we can do everything we can to supply them with the power that they need to produce clean LNG, we won't just be, hopefully, decarbonizing Asia and growing economies there but also ensuring that BC communities can have the full benefit of this opportunity while there's still demand for this product. Thank you.
Mike Starchuk, committee chair and NDP MLA for Surrey Cloverdale: Bang on. That is it. Thank you very much for your presentation.
Tom Shypitka, committee vice-chair and BC United MLA for Kootenay East: Thanks. Is it Margareta?
Margareta Dovgal: You got it.
Tom Shypitka: … Thanks for the presentation. I see the priorities here, and it's supporting my dedication. Permitting is something I've been kind of on for quite some time now. We need to get those permits out the door. Of course, we've got to do it responsibly. We need some certainty, though, behind it and to attract investment because, as we heard from the last presentation, without these processes in place that carbon leakage is going to go and that investment is going to go with it.
Also with the electrification of the infrastructure, BC Hydro's IRP that came out, a 20-year projection on energy demands and what we have in the grid, may show a surplus, and that's arguable as to where we're going with electrification, but it's not always there at site.
We need that access when we're looking at a critical minerals strategy, when we're looking to make sure that we keep those critical minerals here in BC. It's super critical that we have that in place because not only does it provide for a low-carbon future, but it also provides for national security and many other things as well… As we go into the future, where do you see our natural resource sector going into the future?
Margareta Dovgal: I think the pandemic was a really good reminder of the importance of having these industries in the present day. We saw almost everything shut down, and government took the right steps and deemed a lot of the resource projects that were being built, or were being operated, as essential industries and that enabled them to continue to build things that have future export potential or to continue to export things that elevate our collective quality of life and well-being as British Columbians.
That, to me, is a really poignant example of the need we continue to have in the present day. The world is transitioning, but we're in a remarkably resource-intensive society and way of living. We need natural resources. The need for that does not change as we transition and find ways to meet those needs more cleanly.
Ben Stewart, BC United MLA for Kelowna West: You mentioned the time that it's taking to get things permitted. I'm assuming it's mining that you were referring to — 12 or more years. Is that correct?
Margareta Dovgal: That's correct.
Ben Stewart: Compared to those other jurisdictions you mentioned — Quebec and Saskatchewan, both in Canada — what would be a reasonable amount of time or what should be the target for getting a permit?
Margareta Dovgal: It depends on which factors you want to maintain. If you want to keep all of the barriers and things that need to be jumped through by industry to ensure you're meeting your targets, you probably wouldn't eliminate all those steps.
There's a lot of discussion about overlap between jurisdictions, pancaking regulations, so efficiency could be saved there. I see jurisdictions build mines in two, three, four or five years. A similar thing is seen in LNG.
It's very possible to bring those timelines down. It depends on the type of project and how complex it is, as to what is a reasonable timeline, but it's clear, looking at our international competitors, that 12 or 15 years is just patently absurd.
Ben Stewart: Okay. Thanks.
Adam Walker, NDP MLA for Parksville Qualicum: Thank you for the presentation. I think the three goals that you've asked for are goals that all of us agree with –the idea of ensuring that workers are taken into account as policy changes come.
We are proud that we have a new gold mine in BC. That was a long time coming. It's the first major mine in a very long time. Electrification, obviously, of these industries is critically important.
Just looking at the work that you do as a society to sort of bring forward both the idea of development nature as well as resource development. What work are you doing right now with Indigenous communities to make sure they're a part of this conversation?
Margareta Dovgal: I'm really glad you asked that question. Since the start, we've been really closely connected with Indigenous communities through our work across the province, not just in Vancouver, where we typically do our events and operate.
We run an annual event, the Indigenous Partnership Success Showcase. It's our fourth year doing it. I'm actually the organizer. I encourage everyone here to come to it if you're interested. We showcase lots of stories of partnership between industry and Indigenous communities. That is a big part of the work that we do. It's showcasing what is working, but it's also thinking critically and carefully about ways that processes can be improved.
We're excited to see natural resource industries be a really strong part of the drive towards economic reconciliation. That's certainly the trend I hope everyone here is able to join us in observing.
Mike Starchuk: Great. Thank you for your presentation this afternoon. It's very insightful for us.
The above transcript has been lightly edited and derives from the Legislature’s Hansard Blues transcript. The committee’s report is expected in August. A recording of Margareta’s committee appearance can also be heard here, starting at 3:38:03.