A new deal between B.C.’s mining and tourism industries over land use is a step toward regaining investor confidence in both sectors, say industry representatives.

A memorandum of understanding (MOU) between the two groups recognizes a two-zone system where mining is not allowed in parks, ecological reserves and protected heritage property. Mining is allowed outside those areas, while still subject to applicable legislation, regulations and government policies.

The MOU “will provide the kind of certainty that mineral investors are looking for,” said Gary Livingstone, president of the Mining Association of British Columbia (MABC).

Livingstone joined representatives from the B.C.-Yukon Chamber of Mines (BCYCM) and the Council of Tourism Associations of B.C. (COTA) at the recent signing of the MOU in Vancouver.

The mutual recognition and support for the two-zone system is critical for the future of mining in B.C., said Livingstone, noting that good relations between the two industries will ultimately result in long-term economic benefits for the province.

“If there’s a strong mining industry in this province, it’s going to create more tourism,” he said in an interview with Business Edge. “(And) a strong tourism sector is good for our sector.”

The agreement states in part that COTA will encourage its tourism members to make themselves aware of known mineral potential in areas where they wish to operate but where mining activity is being pursued, and to make “reasonable efforts to minimize impacts on essential components of exploration and mining activities.”

The agreement also states that members of BCYCM and MABC will be encouraged to minimize the impact of their activity on tourism activities in the designated areas.

Mary Mahon Jones, CEO of Council of Tourism Associations of British Columbia, said tourism has been battling to be recognized as a resource user on the land. “When you think of resources in B.C. you think of mining and forestry,” she said. “You don’t necessarily think of tourism.”

She said a conversation she had with BCYCM president Shari Gardiner a couple of years ago about opening dialogue with both the tourism and mining industries was instrumental in bringing them to the table.

Speaking on behalf of the explorers, prospectors and junior developers represented by her association, Gardiner said the land-use designation will provide “an added element of certainty for the access of land for mineral exploration, while protecting important wilderness and recreational areas.”

“We believe the industry has turned the corner, and the agreement we have signed . . . sends a powerful message to the investment community that B.C. is open for all types of business,” Gardiner said.

The mining industry provides about 10,000 people in B.C. with direct employment and indirect jobs to another 20,000. Revenue from the mineral industry is about $3 billion annually.

Gardiner said it takes about $50 million of exploration spending to discover one viable mine. Spending on exploration fieldwork in all of B.C. was approximately $45-55 million in 2003, far below the $100 million per year she said is needed to sustain the industry in the future.

Meanwhile, the Fraser Institute has released a mining industry survey rating B.C. as last in Canada with policies likely to attract new mining investment. The institute’s seventh annual survey of mining companies rated the policy attractiveness and mineral attractiveness of mining jurisdictions in North America and around the world. Quebec scored the highest in Canada, with Chile coming out on top worldwide.

Livingstone called B.C.’s standing in the report “disappointing.”

“This agreement is a great opportunity to try to improve our standing in that report. Our objective is to get to No. 1 in that report, and I believe it’s our government’s objective to do the same thing.”

Meanwhile, B.C.’s mining industry was looking to boost investor confidence in the province – which now has only 13 operating mines – at the 21st annual Mineral Exploration Roundup Conference held last week in Vancouver.

More than 3,500 delegates from 24 countries gathered to hear international speakers on exploration activities, deposit geology and industry developments ranging from the outlook for gold, diamonds and other metals to sustainability issues and financing trends.