Canada’s mining industry has won the political support needed to reverse years of decline, outgoing Mining Association of Canada (MAC) president and CEO Pierre Gratton said Tuesday. Companies now need to turn that backing into new mines.
Gratton, who has led MAC for more than 15 years, used his final address to the Greater Vancouver Board of Trade to highlight faster project reviews and proposed tax breaks for mine investment.
“The only thing in mining walking into the sunset right now is me,” he told a lunchtime audience at Vancouver’s Fairmont Waterfront hotel.
Canadian copper output has fallen 23% and nickel production 44% over the past decade, he said. But Ottawa’s recent policy shift gives miners a chance to rebuild those supplies as Canada and its allies seek alternatives to Chinese-dominated supply chains. Success will depend on getting projects built while preserving the community trust that helped win government support.
Industry doyen
Gratton retires Dec. 31, with MAC senior vice-president Ben Chalmers taking over Jan. 1. Gratton first joined MAC in 1999 and led the Mining Association of British Columbia from 2008 to 2011 before returning to head the national association.
When he entered the industry, Gratton didn’t want all his friends to know where he was going. He feared they’d think he was selling out.
“It didn’t take me very long to really fall in love with this industry, and I mean that sincerely,” he said.
Governments then favoured technology and services, while disputes over safety, environmental damage and Indigenous rights kept miners on the defensive, Gratton recalled. Companies had to learn that securing a permit wasn’t enough; they also needed acceptance from people living near their operations.
Learning curve
Three months after joining MAC, Gratton was tasked with helping develop Towards Sustainable Mining, despite knowing little about the industry. Launched in 2004, the program assesses individual operations through independent verification and oversight involving groups outside mining.
Mining associations in 13 other countries, including Brazil, Australia and Mexico, have adopted it, he said. Gratton credits that work and stronger Indigenous relationships with helping change public attitudes.
A MAC survey of 3,055 Canadian residents in March found 79% wanted more mining projects, up 19 percentage points in seven years. The association published the results in July.
The focus on critical minerals has also helped Canadians connect mining with energy, technology, health care and national security.
“The term ‘critical minerals’ has accomplished what millions of dollars spent by the industry around the world on communications could never accomplish,” Gratton said.
Building mines
Gratton sees reasons to expect the support to last. During the China-driven commodity boom of the 2000s, miners grew excited but governments didn’t change their approach, he said. Today, securing mineral supplies has become a sustained political priority.
Gold has already bucked the decline in Canadian output, with production up 31% over the past decade, he said. Gratton also cited McIlvenna Bay in Saskatchewan, which he described as Canada’s first new copper-zinc mine in more than a decade. Owner Eldorado Gold (TSX: ELD; NYSE: EGO) produced first copper concentrate there in June.
Ottawa’s proposed Productivity Mega Deduction, announced last month, would let companies deduct the full cost of more eligible capital investments when those assets enter service. Qualifying mine development expenses would also become immediately deductible. Faster write-offs could improve cash flow and make some marginal projects viable, Gratton said.
One review
The measure offers limited immediate help to companies without taxable profits, however. MAC is pressing Ottawa to extend investment tax credits to development expenses, particularly for producers struggling against Chinese-dominated supply chains, he said.
Gratton also welcomed Saskatchewan’s move toward an impact assessment co-operation agreement, saying it brought the last province into Ottawa’s push to cut duplicate federal and provincial reviews. The proposed deal, announced Monday, aims for “one project, one review,” allowing both governments to assess major developments through a coordinated process.
MAC wants expansions of existing operations and fully electric underground mines excluded from the federal list of projects that may require an impact assessment. Gratton expects some changes this fall, though he doesn’t expect to win everything the association seeks.
Trust test
Government backing won’t rescue developers who neglect Indigenous relationships, Gratton warned during questions moderated by McMillan partner Sharon Singh. He said he hadn’t seen companies becoming complacent but wanted miners to guard against it.
“The governments will not go to the wall for you if there’s friction in the region,” he said.
For Chalmers, the next stage will centre on putting policy gains to work and sustaining support for roads, ports and power that can open new mining regions. Gratton cited Ontario’s Ring of Fire and proposed road and port infrastructure in Nunavut as long-term investments that must keep advancing.
He urged developers to use the faster assessment process.
“So those that aren’t in the system, get in it,” he said. “Build some more mines.”
Be the first to comment on "Canada’s miners must seize political opening: Gratton"