The PwC survey issued last week found aggregate gross mining revenues fell to $8.2 billion in 2014, compared to $8.5 billion in 2013.

Net income before taxes came in at $288 million, down considerably from $1.4 billion in 2013, amid a drop in prices for key metals produced in the province, particularly coal.

Spending also fell as companies continued to hunker down and weather the ongoing market volatility. Capital expenditures, for example, fell to $1.5 billion, compared to $1.8 billion in 2013.

Mark Platt, partner and leader of PwC's BC mining practice, said investment in BC's mining industry remained depressed last year as prices for its key commodities, metallurgical coal and copper, remained soft.

“Producers and developers continue to take measures to contain costs but at least producers felt some relief from the impact of the significant weakening of the Canadian dollar compared to the US dollar,” he said.

While PwC said supply and demand were the key factors impacting commodity prices last year, the group said the strengthening US dollar and concerns about an economic slowdown in China – one of the world's largest consumers copper, coal, and zinc – also influenced prices.

“While most commodity prices were still well above their levels during 2008 and 2009 global recession, they remain down considerably from record or near-record highs set in 2011,” PwC said.

The drop in metallurgical coal prices had the biggest impact on mining activity in Canada’s westernmost province last year and a handful of coal mines were put on care and maintenance during the year due to lower prices.

Metallurgical coal has fallen below $US100 per tonne as of the spring of 2015, down from record $330 per tonne in 2011, due to oversupply of this steelmaking ingredient in the global market and a slowdown in China's economic growth.

Looking ahead, PwC believes 2015 will be another challenging year for metal and coal prices.

“While some metals will do better than others, miners will continue to manage their costs to reflect the ongoing downturn in the cycle, and are expected to treat any price recovery with great caution,” PwC said.

“The impact of several mines being put into care and maintenance during 2013 and 2014 will also be seen in full in the 2015 numbers.”

Signs of life

While the position of these mines is bad news for the economic growth in BC's mining industry, other mines are still moving toward production.

What's more, last year’s exploration and development expenditures from PwC’s survey respondents increased to $C234 million – an increase from $185 million in 2013, but below the $305 million spent in 2012.

Many miners are also holding up relatively well, despite lower prices for their commodities.

PwC's latest Junior Mine Report, which looks at the top 100 mining companies by market capitalisation on the TSX Venture Exchange, showed the environment was tough for juniors today, “but their grit and determination could soon pay off”.

According to the 2014 Junior Mine Report, the Top 100 raised a total of $685 million through equity financings in the 12-month period ended June 30, 2014, which was down from $795 million a year earlier.

"BC's mining sector is not showing any early signs of improvement in 2015,” Platt said.

“But investment in the mining industry must continue, despite today's challenging conditions.

“Miners need to keep exploring if they are to find the discoveries today that will be developed into the mines of tomorrow. This is the only way to ensure the industry remains competitive in the long term.”