Minister tells mining world: “Canada a great place to invest”

By Frank Giorno

Mining is one of the driving forces of Canada’s economic prosperity, delegates were reminded at the annual convention of the Prospectors and Developers Association of Canada (PDAC).

Joe Oliver, Canada’s Minister of Natural Resources, delivered the keynote speech at the PDAC session dealing with Risk and Reward in Mineral Exploration and Development.

“Our government is acting to ensure Canada is the most attractive mining investment destinations in the world,” Oliver said.

“We’re keeping taxes low, eliminating red tape and promoting free trade and innovation.”

The total number of convention attendees was 30,147, representing 126 countries.

Excluding Canada, the largest number of attendees came from the United States, Australia, Peru, Mexico, England, China, Brazil, Chile, Argentina, South Africa & Turkey.

Oliver literally had the ear of the international mining community as he made a pitch for investment in Canada.

Canadian mineral exports

The total value of Canadian mineral exports was $92.4 billion in 2012, accounting for 20.3 percent or one-fifth of Canada’s total exports. Key exports from the mining sector included aluminum, nickel, copper, gold, silver, uranium, coal, potash, zinc, diamonds, iron, steel and iron ore.

In 2011, mining produced a $24.7 billion trade surplus and $17 billion in capital investments in Canada. As well, in 2011 the mining sector contributed $63 billion to Canada’s Gross Domestic Product (GDP) accounting for 3.9 percent of the total GDP.

Mining and processing companies paid $7.1 billion in corporate taxes and royalties that help pay for programs and services used by Canadians every day, including healthcare, education and bridges.

More than 320,000 Canadians are employed in the mining and mineral processing industries, creating employment opportunities across Canada. Jobs are also being created in many Aboriginal and Northern communities.

According to the Mining Association of Canada’s latest Facts and Figures report Canada remained the world’s top destination for mineral exploration in 2012 attracting 16 per cent of budgeted spending. Canada remains a world leader in equity raising for exploration and development.

Almost 40 per cent of the world’s equity financing for mineral exploration and mining was raised by companies listed on Canadian stock exchanges. Nearly 37 percent of budgeted worldwide exploration expenditures in 2012 were made by Canadian-headquartered mining companies.

Mining and Aboriginal

Communities

Oliver emphasized his government’s commitment to ensuring meaningful consultation with First Nations and Aboriginal communities at the onset of major projects. He announced the launch of the updated Exploration and Mining Guide for Aboriginal Communities. The guide helps to encourage Aboriginal participation in mining.

“Over the next two years we’re investing $13.6 million to fund Aboriginal consultations including participation in environmental assessments,” Oliver said. “This underscores our commitment to respect constitutional obligations to Aboriginal Canadians.

The minister also highlighted the Canadian government’s efforts to modernize Canada’s mining regulations north and south of the 60th parallel. The government’s Responsible Resource Development Plan establishes stringent timelines for reviews of major projects guaranteeing timely development of mining projects.

The plan also moves Canada to a “one project, one review” approach, making Canada’s mining regulations among the most efficient, effective and competitive in the world.

Oliver underscored the importance of utilizing the latest technology in exploration and mining by announcing the latest Geo-mapping for Energy and Minerals (GEM) releases. GEM provides geophysical data to guide exploration for base and precious metals in the Pelly Lake region of Nunavut and also provided new geological maps to help locate gold and copper occurrences in the Dawson Range-White Gold District of the Yukon.

The minister reaffirmed the Canadian government’s support for sustainable economic growth and job creation as a way of reducing poverty in developing countries through the establishment of the Canadian International Institute for Extractive Industries and Development.

“The institute delivers knowledge that developing countries can use to turn their resource wealth into sustainable prosperity,” Oliver explained.

At a news conference following his speech, Oliver said that mining in Canada is crucial for improving the standards of living in First Nation communities and Aboriginal people. He encouraged mining companies and nearby communities to negotiate deals that will be mutually beneficial. He stated that the government of Canada, however, will not develop or propose guidelines or standards of what it believes to be acceptable sharing arrangements.

“The signing of impact benefit agreements are to be negotiated between the mining companies and the communities and each agreement should reflect the local conditions,” Oliver said.