Forestry, mining, natural gas and power generated $1.8 billion in royalties and other revenue for 小蓝视频 in 2024-25, according to the province's latest budget.
The value of those exports was down three per cent in 2024, due to lower commodity prices, like lumber and natural gas.
Thanks in part to a new LNG industry, the government is forecasting growth in royalties from natural gas production.
The budget forecasts natural gas royalties will increase by about 60 per cent over two years, as a result of higher prices for natural gas and natural gas liquids, and increased production volumes – increases partly attributable to LNG Canada going into production this summer.
Tuesday's budget forecasts royalties from natural gas will nearly double over the next two years, increasing from $576 million in 2024 to $920 million in 2024-25, and $1.2 billion in 2026-27.
Higher stumpage rates are expected to increase revenue from forestry, but those revenues will be offset by lower harvesting volumes. Revenue from forestry is expected to increase a meagre 1.7 per cent over the next two years. Over a four-year period, $448 million in forestry revenue will be transferred to First Nations as part of revenue sharing agreements.
Revenue from mining is expected to increase 35.2 per cent in 2025-26, from $330 in 2024 to $446 million in 2025, due to higher production and a low Canadian dollar, which favours exporters, but then decline 14.4 per cent over the following two years, due to projected weaker prices for 小蓝视频 most valuable commodity export – metallurgical coal.
China, as the world’s biggest steel maker, is the big driver of metallurgical coal demand, and China’s economy has been weakening in recent years. Metallurgical coal prices are expected to weaken correspondingly in the coming years, from $248 per tonne in 2024 to $218 per tonne in 2025.
As with forestry, the government also expects to forego $376 million in mineral revenues, which will be transferred to First Nations over the next four years, as part of revenue sharing agreements.
