With the recently announced $25 Billion “Pacific Gateway Transportation Strategy” designed to position British Columbia as a hub of activity, featuring a network of boats, trains, planes and automobiles all working together seamlessly to transport people and goods across B.C., Canada and the United States, and compounded by the government of Canada’s $1.3 billion expansion to the Port of Prince Rupert – including the Ridley Island rail and utility corridor, Ridley coal terminal expansion, Fairview container terminal expansion, Watson Island development, Westview’s wood pellet terminal and more – the market for Highbank’s aggregates is very promising.
In addition, Canpotex recently announced their intention to construct a potash terminal in Prince Rupert. Add to this the potential of two Liquified Natural Gas (LNG) facilities (one proposed site on Ridley Island and a second on nearby Lelu Island); and two or more LNG facilities proposed for Grassy Point (35 miles south of Highbank’s deposit), as well as gas pipelines from northeast British Columbia with nearby routes to the LNG facilities, the aggregate requirements keep growing. Also in nearby Kitimat, B.C., Canada, a $3.3 billion Rio Tinto expansion of the Alcan Smelter and the recent David Blacks, $25 Billion Refinery proposed for 25 miles north of Kitimat adds to an aggregate demand never heard of for the Pacific Northwest.
In April 2012, British Columbia’s Energy Minister Rich Coleman announced that the provincial government had received four “new major international LNG project proposals,” all in the Prince Rupert area. The construction of these massive LNG plants will require vast amounts of construction aggregates throughout their build. In October 2014, the BC Government announced the final tax and royalty structure applicable to LNG operations in the area, which appears favorably inclined to ensuring growth in the area.