GUEST COLUMN — Dispelling prophecies of doom

Mining activities here in Canada are in decline even while metal demand worldwide continues to grow because of the vital role mining products play in our daily lives.

But our industry is still seen as dirty, dangerous and low tech. A poor public image translates into negative public policies and negative regulatory actions. The mining industry does not have a tradition of putting the environment first. But few, if any, industries can brag about their past actions.

Yet we have come a long way. Mining practices that were acceptable even 10 years ago are not tolerated today. As a result we are designing our new mines in radically new ways.

We will never convince society that we can mine in an environmentally responsible way unless we insist that all mining companies in Canada and around the world conform to minimum environmental and safety standards. Equally important, these codes of practice will have to be tough and self-imposed. I am proud to report that The Mining Association of Canada is taking the lead nationally and internationally in this regard. Meanwhile, environmental extremists are disarmingly effective through prophecies of doom. Their contempt for scientific facts is beginning to be echoed by government spokesmen. The emergence of the precautionary principle embraced by delegates in Rio de Janeiro earlier this year is evidence of this. The good news is that the world’s scientific community is fighting back. More than 500 of the world’s leading scientists have signed a petition known as the Heidelberg appeal. The signatories include 62 Nobel prizewinners. Their message is straightforward — the greatest threats to the world come from poverty, disease and overpopulation and it is only through science and industry that we can tackle these threats. The Heidelberg appeal emphasizes that environmental standards must be balanced with people’s needs and based on sound scientific data.

It is becoming increasingly difficult to get permits to operate mines in Canada. It has become more complex, more expensive and much more time-consuming to turn an orebody into a mine.

For example, our Hemlo gold mine in Northern Ontario took less than two years to bring into production in 1985. Today, it would take four years or even longer and cost millions of dollars more.

To make matters worse, the atmosphere in some jurisdictions is downright hostile. All sorts of so-called experts are urging Canada to move away from a resource-based economy. I’m talking about economists, academics, politicians, journalists and others. They want us to move to a “value-added, high-tech, service-oriented economy.”

Make no mistake, building upon our industrial base is a rational and desirable objective. Unfortunately, in their zeal to move “ahead,” too many influential people are advocating actions that are undermining Canada’s resource industries, mining in particular.

This despite the fact that our industry is the foundation from which a lot of these value-added, service-oriented and high-tech businesses can evolve. Our low-tech image is not justified. Canadian mining companies are recognized by their peers worldwide as leaders in mining and metallurgy. The industry has been accused of spending only 0.75% of our revenues on research and development compared with the national average of 2%.

To begin with, the numbers are inaccurate because the resource industry does not account properly for its R&D expenditures. Noranda Minerals’ average spending, for example, is actually about 2.5% of our revenues. If we add exploration costs, the total commitment to outreach activities aimed at renewing and rebuilding is 7% of revenues.

We should be proud of the technological strengths of Canadian mining companies. Inco Ltd. not only develops and designs new mining equipment, it also builds and sells the equipment worldwide. Cominco Ltd. not only produces lead, it spends millions researching new battery technology and has developed an electric vehicle prototype.

Noranda’s leading R&D edge in mine automation and radically new blasting concepts are further examples of long-term commitments to technological excellence.

Economists, academics, politicians and regulators must reflect on the consequences of an anti-mining strategy. The international mining community is in danger of concluding that it is not welcome in Canada. — Alex Balogh is president and chief executive officer of Noranda Minerals.