EDITORIAL & OPINION – COMMENTARY — Sector must face challenges

I like a challenge, and I firmly believe that anything that makes people and businesses re-examine their current methods and beliefs is a good thing. Although challenges often lead to the creation of more efficient systems and streamlined processes, if they become insurmountable, they can result in a needless and devastating demise.

Today, the Canadian mining industry is facing some of its biggest challenges to date, including:

• competition from other countries — Mineral-rich, but formerly insular, countries are seeking to attract foreign investment. As Canadian mining companies try to compete in the increasingly intense and sophisticated global arena, national pride and boundaries are becoming less and less significant.
• higher tax rates at home — From 1988 to 1992, Canada’s total non-profit taxes and levies increased to 10.6% from 7% of mine operating costs — far more than most mineral producing nations.
• unresolved land claims issues — In Canada, land claims disputes can take years and cost hundreds of thousands of dollars to resolve.
• overlapping and duplication — Cumbersome federal and provincial regulations entangle companies in metres of red tape that require money and time to unravel.

No industry can or should operate unchallenged, and the mining industry welcomes challenges. Throughout history, the mining industry has risen to, and overcome, many challenges. As a result, it has earned a global reputation for its superior technology and environmental stewardship.

Strengthened by challenges, Canadian mining people are doing their best to meet the current set of obstacles. Through hard work, creativity and foresight, they are trying to achieve policy changes that will strengthen the climate for mineral investment. Through its efforts, the mining industry has shown that it is progressive, innovative and flexible. If policymakers in Ottawa adopt the same approach, Canada’s most valuable natural resource industry will continue to flourish and all Canadians will benefit.

— The author is director for Mining Works for Canada, a program designed to increase awareness of mining in this country.