COMMENTARY — Stimulate mine exploration

An unfortunate reality of today’s mining business is that more and more mining companies are investing their exploration dollars outside Canada, says Gregory Waller, financial analysis manager for Cominco in Vancouver and a spokesman for the Keep Mining in Canada campaign.

“As exploration declines, so does new investment in the Canadian mining industry; the resulting negative impact on the economy has the potential to be significant,” he says. “This impact will probably be felt sooner rather than later, and could affect Canadians more than most people realize.” When direct jobs are created in the mining industry, so are spinoff jobs. Statistics obtained from the office of Natural Resources Minister Anne McLellan state that for every 10 jobs created in the mining industry, eight more are indirectly created in the Canadian economy.

“It’s painfully clear to see the reverse of this,” Waller says. “As more and more Canadian investment goes to countries in Latin America and elsewhere, the economic impact will be felt across the entire country, not only the 150 communities across Canada that depend on mining.”

The mining industry contributes more than 17% of Canada’s total exports, and the loss of this vital link in the economy could mean a lower standard of living for all Canadians, cautions Waller, adding that this negative impact on all Canadians is not far off.

“All Canadians have witnessed loss of employment in recent times, but it pales in comparison to what we will see in the mining sector unless the federal government takes action now to keep mining in Canada,” he says. Waller says there are several ways the government can stimulate exploration and investment: simplify costly and complex environmental approval procedures; tax exploration at the same levels as other forms of research and development; clarify land access issues; and treat mine reclamation funds as “environmental RSPs” by deferring tax until the fund is actually used. Keep Mining in Canada is a national grassroots campaign designed to increase public awareness of mining matters and to encourage government to take action on key mining policy issues.