Commentary: Canada’s mines ministers need to address problems

The following is an excerpt from the Canadian Mineral Industry Federation’s submission to the Annual Energy and Mines Ministers’ Conference, which was held in July in Kananaskis, Alta.

There remain challenges facing the Canadian exploration and mining industry, including land access, regulatory effectiveness, energy, infrastructure and innovation. To help address these challenges and others, the Canadian Mineral Industry Federation (CMIF) proposes the following recommendations to Canada’s natural resources ministers:

Develop a national mining strategy. To the best of our knowledge, Canada has never developed a coordinated national mining strategy. It is timely for federal, provincial and territorial ministers to mandate that officials develop such a strategy for approval in one year. Canada has a window of opportunity over the coming decades to capitalize on the large-scale economic development in China, India and elsewhere. The Canadian mining industry has been one of the key contributors to Canada’s economic strength. The industry’s technological capabilities and global presence should be viewed as a source of national pride. A national strategy would underscore the above challenges and outline the commitments of governments to work with industry and stakeholders, in the aim of enhancing industry competitiveness, sustainable investment and economic development. A national mining strategy would also be the proper vehicle in which to articulate measureable ministerial targets and federal, provincial and territorial government targets for enhanced mineral development in Canada. 

Address regulatory impediments and inefficiencies. Some improvements have been seen in recent years, though many challenges remain. We recommend that officials within relevant departments be mandated to work with industry and stakeholders to improve regulatory efficiencies that will stimulate investment, improve project timelines, and at the same time, support responsible environmental stewardship and conservation. In particular, the interpretation and application of the Fisheries Act should be clarified and made consistent, with a compliance system that is predictable and proportionate to risk. If necessary, regulatory or legislative amendments should be considered. The Canadian Environmental Assessment Act should be amended to recognize provincial processes that meet or exceed minimum federal requirements as equivalent to the federal process, and the use of delegation to provincial processes should be used more frequently in the meantime. Regulatory improvements should also be made to the Migratory Birds Convention Act and the Species at Risk Act, to provide industry with greater compliance certainty, reduce the potential for litigation and align better with provincial actions and requirements. 

Improve land access and permitting processes. In recent years, important questions have been raised regarding the inter-related issues of Aboriginal consultation, land use planning, protected areas and revenue sharing. Continued ambiguity in these areas could have a negative effect on Canada’s status as a destination for capital investment. The Prospectors and Developers Association of Canada’s position statement January 2011 on land access outlines eleven principles regarding land-use planning for crown lands. These are clearly articulated, and should be carefully considered by federal, provincial and territorial governments involved in these issues. 

Continue addressing skills issues. The Canadian mining industry requires some 10,000 new workers per year over the coming decade to meet production targets – at a time when the skilled core of the industry is reaching retirement age, and output of post-secondary programs is falling short of needs. Governments must work with industry, schools, Aboriginal groups and other communities to address the sector’s skills training, mobility and immigration needs. 

In this respect, the federal government’s support for the work of the Mining Industry Human Resources Council is valuable, as is support for the Construction Sector Council and the Petroleum Sector Council – all are supported through the federal government’s sector council program. 

The Aboriginal Skills and Employment Partnership (ASEP) program has been highly successful since its creation in 2003, helping prepare over 18,000 Aboriginal Canadians for skilled jobs. It is very important that this program be funded beyond the present 2012 timeframe. The ASEP helps enhance the synergy between Aboriginal skills and mining industry prospects. 

Make strategic investment in infrastructure and innovation. The ongoing extension of the Highway 37 transmission line in northwest B.C. is a good example of the positive impacts of infrastructure investment. This capital cost of $400 million will enhance the economics of an estimated $15 billion in mineral projects. Similarly, the planned extension of the Monts Otish Highway in northern Quebec would improve future prospects for development of gold, diamond, copper and uranium projects in the surrounding region. In the Far North, investment is needed in priorities such as all-weather roads and sea ports. Governments should work closely with industry to identify and invest in other key infrastructure projects relating to transportation, logistics and electricity supply. 

Regarding the innovation challenge, the Canada Mining Innovation Council is in discussion with government agencies in the aim of enhancing support to the industry’s priorities. There are several federal, provincial and territorial programs and agencies that should broaden their understanding and funding of these innovation priorities. 

Implement rail service commitments. The federal government
issued its response to the Rail Freight Service Review panel in March 2011. The response was
constructive and contains useful measures relating to rail service agreements, commercial dispute resolution, non-performance penalties and metrics for ongoing measurement. The federal government should proceed with these legislative and operational improvements on a priority basis.