New power line holds key to B.C.'s ambitions for critical minerals

Globe and Mail

2 days ago

The B.C. government has committed to building a new transmission line to bring electricity to power-hungry projects, including a string of proposed critical-mineral mines in the province's northwest.
There is no budget, no timeline, and the precise route has yet to be confirmed. First Nations along the proposed line have not yet agreed to the project. And, there are no confirmed customers for the North Coast transmission line.
The line is key to delivering on Premier David Eby's promise that British Columbia can become the economic engine of Canada. Prime Minister Mark Carney and premiers across Canada have pledged a flurry of infrastructure projects to diversify markets away from the United States.
But British Columbia faces hurdles, from First Nations' reluctance to embrace fast-tracking projects, to BC Hydro's spotty record of completing such projects on time and on budget.
Energy Minister Adrian Dix says shovels will be in the ground the summer of 2026.
'There's no question it can be built and that it will be built,' he said in an interview this week. 'It's a critical aspect of all that work we're doing.'
To clear the path, the province passed legislation on Thursday that will exempt the project from the environmental assessment review.
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The new 500 kV transmission line and associated infrastructure will run from Prince George to Terrace, with possible extensions in three directions: to Kitimat, Aiyansh and Prince Rupert.
The line is needed, Mr. Dix said, to supply power to proposed critical-mineral mines, liquefied natural gas projects, and an expanded Port of Prince Rupert, which features heavily in the province's ambitions for a Western transportation network that will open up more Canadian trade with Asia.
Currently, BC Hydro is negotiating with 14 First Nations to determine the route. The Crown corporation is proposing Indigenous co-ownership and joint environmental studies, in lieu of a full, formal environmental assessment process that can delay construction.
'The intent is to shave off years,' Mr. Dix said.
Bill 14, the Renewable Energy Projects (Streamlined Permitting) Act, and Bill 15, the Infrastructure Projects Act, were the key features of the provincial legislative session that wrapped up on Thursday. Both laws are designed to speed development of infrastructure and resource projects, including mines and energy projects ranging from wind farms to liquefied natural gas.
Both bills received intense criticism from First Nations leaders, local governments and business and environmental organizations over concerns that fast-tracking approvals will mean insufficient scrutiny, and could ultimately lead to greater uncertainty and delays.
Some First Nations leaders have warned that projects will face lawsuits if their rights and title are undermined. The BC Chamber of Commerce this week decried the province's failure to consult with First Nations before introducing the legislation.
'The consequence is that projects designated as 'provincially significant' now face a heightened risk of legal challenges,' Fiona Famulak, the chamber's president and CEO, wrote to Mr. Eby.
Environmentalists, meanwhile, worry that the exceptional powers granted to cabinet to speed up project approvals will expose the province to greater risk of ecological disasters.
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'There are real threats to our ecosystems and communities if mines are listed as 'provincially significant' and bypass environmental assessments. The current regulatory regime in B.C. doesn't do enough to protect our water and lands today,' said Nikki Skuce, co-chair of the BC Mining Law Reform network.
Ontario Premier Doug Ford is pushing through similar legislation in the face of opposition from First Nations. Like B.C., the Ontario government wants to fast-track critical-mineral development by creating 'special economic zones' where mines or other projects could be exempt from provincial laws. Mr. Ford said this week he will amend his proposed law to reaffirm Ontario's pre-existing constitutional obligations to consult First Nations.
Even before shovels are in the ground, the potential demand for the North Coast transmission line could be under pressure, based on the projects that the B.C. government hopes to secure.
Michael Goehring, president and chief executive of the Mining Association of BC, said the 18 proposed critical-mineral mines that are in advanced development in B.C. need access to significant power, or they won't move forward.
The province estimates the mines projects in the Northwest alone are worth $30-billion in economic activity – but to land those investments, the province needs to provide somewhere between 400 MW to 700 MW by 2035. That could use up more than half of the power available from the new transmission line, leaving little for developing LNG, port expansion or anything else.
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Mr. Dix said that's something his government is going to have to figure out. 'One of the issues that we're also going to be addressing in the coming months is questions around electricity allocation.' He is looking at the Quebec model, which prioritizes projects of provincial interest.
Mr. Goehring argues that mining – especially the critical minerals that Canada has identified as a priority – should come first. 'The North Coast Transmission Line is critical to our province's mining sector and the economy of Northwest B.C.,' he said.
'There are a number of critical-mineral projects in this region like the Turnagain nickel project and Galore Creek, a world class copper-gold project, that could increase Canada's copper production by 35 per cent. Cost-effective transmission and clean electricity are essential to their development.'
Before B.C. passed its streamlining law, BC Hydro estimated it will take eight to 10 years to build the North Coast line. But the Crown corporation hasn't had a track record for building major projects on time and on budget.
The Site C dam, with a $8.8-billion budget, was completed for $16-billion.
The Northwest Transmission Line was completed in 2014. Originally launched with a budget of $404-million, it came in at $736-million, an overrun blamed on challenging terrain and higher-than-expected costs for materials and labour.
The Interior to Lower Mainland Transmission Line came into service in 2015, a year behind schedule. The delays were triggered in part because the contractor brought in faulty steel towers from India that twisted, bent and collapsed.
BC Hydro said that project came in on budget – but then it ended up paying a $100-million settlement to its contractor after a protracted dispute. At the time that the details of those challenges were coming to light, Mr. Dix was serving on the opposition benches as the NDP's energy critic: 'The tendering process is a fiasco; the project is a disaster,' he said at the time.
Mr. Dix insists that BC Hydro will do better this time.
'I think they they've learned from those experiences,' he said, 'and I'm confident BC Hydro will be able to build it.'