A commitment to Yukon mining

The Yukon remains a small and specialized economy dependent on mining. Although there has been an increase in the size of government and increased economic diversification, mining remains the most important sector.

A decade ago, 1,300 people were directly employed in Yukon mining. Today that number is less than 400. Moreover, the Yukon has the third-highest unemployment rate in Canada.

In 1990, the Yukon produced $400 million in minerals. Last year, that value had shrunk to $62 million. The Yukon can return to that level of production again, but to do so we must restore investors’ confidence. This raises the question: What is the territorial government’s role in restoring mining to its rightful place in the economy?

First, we must understand the globalization of the industry. Worldwide mining exploration is down 56%, compared with the the previous two years. In addition, more than 100 countries recently modified their mining legislation to attract investment. The problem is that there is less money to spend in many more places.

Exploration capital has been fleeing Canada. In 1990, 26% of all exploration dollars were spent in Canada. Today the level has been reduced to 11%, and this has had a devastating impact on the Yukon. We are facing a second year of $8-10 million in exploration spending, which simply isn’t enough.

An important factor in exploration investment is the attractiveness of an area for industry. Our research tells us we could make the Yukon more attractive to mining by improving our performance in four key areas: protected areas, environmental regulations, taxation and land claims.

Canada needs to protect representative samples of its natural regions and wildlife habitat, but industry must have access to the widest possible land base for exploration so that new mineral deposits can be discovered.

The Whitehorse Mining Initiative (WMI) developed a consensus for clear, scientifically based criteria to identify protected areas, while advocating that all stakeholders be involved in selecting these areas.

Access to land is a fundamental requirement of mining, and the cumulative impact of protecting land from exploration and development can have serious economic consequences.

There will be no new protected areas in the Yukon until the problems associated with the current process are addressed. I will ensure that proper resource assessments are completed and that the process is clearly defined in legislation.

Environmental assessment processes are also a concern. In 1998, a survey was conducted for Canadian mines ministers. It found that 92% of all areas of concern identified by industry could be addressed through administrative changes or clearer guidelines. This also holds true in the Yukon.

In 1998, the Yukon Chamber of Mines presented nine recommendations to the Department of Indian Affairs and Northern Development (DIAND) and the Yukon government as to how administration of the permitting process could be improved. In the ensuing months, industry and governments developed several recommendations. For example, information guidelines for environmental assessment should be clearer and more comprehensive; guidelines for acceptable design standards should be followed by regulatory agencies; and companies should reach an agreement with the DIAND as to how the review is to be conducted.

There are also serious taxation concerns in the mineral exploration industry. However, this is a national issue and should therefore be addressed by the federal government and Revenue Canada.

Meanwhile, Yukon land claim negotiations are proceeding in accordance with the Yukon Umbrella Final Agreement, signed in 1993. This template agreement provides a structure for the various self-government agreements with Yukon First Nations.

Since 1993, the Umbrella Final Agreement has paved the way for settlement of seven claims. The remaining seven claims are at an advanced stage of negotiation, and Yukon First Nations are working closely with the mining industry to develop partnerships.

— The author is the premier of the Yukon. The preceding is a condensed version of a recent speech she delivered to 100 mining executives in Vancouver.