Yukon at disadvantage

As a strong advocate of the resource industry, I think potential investors should be fully aware of the lopsided playing field that exists here in the Yukon.

The present status of mining development here is stagnant. Most people are aware of our great mineral potential, but they should also be aware of some of the hurdles of doing business in Yukon.

Low market prices and unsettled land claims are often mentioned as the main deterrents to exploration and development in the territory.

Our neighbours in Alaska and the Northwest Territories seem to be undergoing a mini “gold rush,” and they share similar geology with Yukon. Our government tells us that things will get better once native land-claims issues are settled. Don’t believe it! Land claims will never be settled. Yukon First Nations have their category “A” and “B” lands, as well as input on all other lands in the territory, defined by the term “traditional territory,” which allows First Nations bands to lay claim to lands not under their jurisdiction. In addition, all development boards in Yukon must appoint at least half of its members from First Nations bands. The Yukon government also heeds the demands of radical anti-mining environmental groups, such as the Sierra Club and the Canadian Parks and Wildlife Society.

We have many examples in the Yukon that cast a poor light on the mining industry. The practice of abandoning mines without a proper clean-up has made both government and citizens wary. The grab-and-run mentality that creates these problems should be discouraged.

Pessimism aside, I believe we still have many long-term venture opportunities that could be developed here. Hardrock exploration still seems to be a favoured area of exploration. Our government doles out large sums of money to non-resident companies to encourage them to invest in the Yukon. However, the placer mining industry, which is relatively stable, continues to stumble along.

The development of a hardrock mine requires many years of planning and thorough environmental screening. Even so, it seems that many factors are somehow overlooked.

We need investors who are more interested in small-scale, high-recovery operations which could create long-term jobs. Placer mining, for example, is an area that merits some investigation. This form of mining has been generally confined to creek bottoms, as this is where the placers are reconcentrated. Because of the small-volume capacity of most placer mines, it is necessary to work a high yield material. I believe high-volume operations could operate profitably on lower-paying high-level alluvials. The solution would be a small smelter facility that could be constructed centrally to deal with everyone’s small-grain concentrates.

Brad Mackinnon

Haines Junction, Y.T.