The six billion dollar question
Published: October 01, 2008 8:00 AMNobody in Smithers wants Blue Pearl to fail — nobody.
But after a two-hour open house followed by a five-hour terse question and answer session, we wonder, does Smithers really want Blue Pearl, a.k.a. Thompson Creek Metals after all.
Smithers Mayor Jim Davidson has gone on record both at the Minerals North Conference and in this newspaper as opposed to the project.
Be clear, Davidson is not opposed to developing the resource, he’s opposed to how Blue Pearl is going to do it. And of course, there are others that share his opposition.
To sum up the mayor’s concerns, he believes, rightly or wrongly, that Blue Pearl is not setting up shop at the back of the mountain for one reason and one reason only: To cherry pick the best molybdenum at the lowest possible cost and then bolt out of Smithers leaving the crumbs.
Davidson wants Blue Pearl to access the deposit from the other side of the mountain for several reasons, but the main one is to force the company to make an investment that will ensure a full development of the resource and a longer and larger economic impact for Smithers.
There is no question that Davidson’s contention would mean more Smithers jobs for a longer period of time.
Davidson tells anyone who will listen that going to the other side of the mountain will also alleviate most, if not all, of the other concerns.
Gone would be the trucking through neighbourhoods and the Town. Gone would be the potential environmental impact on the Bulkley River.
Davidson’s proposal for the ironically-called Davidson Project makes a lot of sense from the community of Smithers side of the coin.
For Blue Pearl, as much sense as it makes to Davidson and his entourage to go to the other side of the mountain, accessing the mine from the east side is the best business decision.
For them, why would they in their right minds, want to make the enormous capital outlay to build roads and a processing site when they don’t have to.
Blue Pearl already has all that just 200 kilometres down an established road at Endako.
Also at issue is the length of the proposed plan. In today’s business world, corporate plans can change in 30 days, let alone, 30 years. Blue Pearl’s 10-year plan makes business sense considering the volatile commodity market.
As for the conspiracy theorists, Davidson included, Blue Pearl is telling anyone who will listen that 10 years is simply for the study and that they aren’t planning on highgrading. Trust us, they say, we’re here for all of it.
From a business perspective, the east side is the right side. From a community perspective the west is best.
Because of what appears to be just plain old common sense for both sides, the positions have become entrenched with neither side exploring a third alternative.
Is there no way Smithers can assist Blue Pearl to move its operations to the other side so both are happy?
Is there no federal or provincial funding that could benefit everyone in this case, say a new road that also could provide better access to our other economic hope — the Smithers ski hill — which just happens to also provide access for Blue Pearl on the backside of Hudson Bay Mountain?
Compromise may be a dirty, expensive word, but so too is confrontation. At this rate, neither Blue Pearl or Smithers will get its way.
The clock is ticking and it’s a $6 billion question.


