COMMENTARY — Policies, bans spell trouble

.BBby David Goldman

John Carrington, chairman of the Mining Association of Canada (MAC) and chief operating officer of Barrick Gold, did not mince words in a recent speech at Toronto’s Empire Club about the threats to Canadian mining.

Mr. Carrington warned about two disturbing trends threatening its viability. The first is cumbersome domestic policies that potentially discourage mining investment. Pointing to delays at the Voisey’s Bay and Cheviot projects as evidence of confused, costly and inefficient policies, Mr. Carrington called on Canada’s politicians to bring common sense back to the mine development process.

The second threat to the industry is the growth of technical or non-tariff barriers in the global marketplace, a trend that compromises the gains achieved through more liberal global trade. He was referring to bans and restrictions that discriminate against Canadian exports. Calling actions by the European Commission against metals hypocritical and unsupported by science, Mr. Carrington explained that the impact of these barriers is already being felt on metal markets.

Policy-makers ignore mining at their peril. If the operating environment of the mining and other resource sectors does not improve, all of Canada will suffer, he said.

I applaud John Carrington for taking a stand. I am pleased he was able to voice our concerns to an audience that can pressure Canadian decision-makers to act.

Mr. Carrington, however, did not just point fingers. He recognized that the industry must be part of the solution. As he stated: “We must improve our dialogue with environmental groups, aboriginal peoples and the communities in which we operate.”

I ask you all to heed this advice. We must not grumble about these obstacles. Instead, we must work with all stakeholders to ensure that we have a vibrant mining industry for the benefit of future generations.

— The author is chief operating officer of Noranda. He wrote this column at the request of Mining Works for Canada.