MAC warns mines ministers of looming problems

The Mining Association of Canada (MAC) delivered a strong message to federal, provincial and territorial governments recently at the 63rd annual Mines Ministers Conference in Whitehorse, Yukon, warning of the looming crisis facing the industry due to declining reserves, human resource constraints and regulatory inefficiencies.

MAC says action is needed now to help rebuild levels of Canadian base metal reserves, which have fallen by 50-80% during the past 25 years.

MAC warned that potential impacts of declining reserves include the closure of smelters and refineries, job losses, the economic deterioration of mining communities across Canada, and investment capital that will go elsewhere.

“Solutions are clear: a combination of new geoscience and exploration investment. Yet, three successive federal budgets and two governments later, the Cooperative Geological Mapping Strategy remains unfunded and this, despite the unanimous endorsement of all federal, provincial and territorial mines ministers last year,” said Gordon Peeling president and CEO of MAC. “Clearly, our voices have to be louder still to get Ottawa’s attention.”

MAC also urged governments to address regulatory inefficiencies noting that the project review process is unpredictable, inefficient and expensive — with projects often subject to changing or multiple project scopes and no clear administrative lead. As a first step, the federal government, said MAC, should establish a small and efficient co-ordination office to monitor progress, resolve bottlenecks, and act as an ombudsman for project proponents.

“Investment in the billions of dollars is at stake,” said Peeling. “Regulatory inefficiency affects Canada’s status as a destination for capital investment and, in turn, impedes Canada’s ability to develop projects and build its level of base metal reserves.”

MAC expressed the need for government support in addressing the human resources crisis that faces the industry, noting that the industry could require up to 81,000 people to meet demands over the next decade. Governments at all levels should work with industry, educational institutions, accreditation bodies, aboriginal peoples and other stakeholders to address the skills training, mobility and immigration needs of the mining industry.

In support of these public policy challenges, MAC also released its annual Facts and Figures publication at the conference. The publication provides details on the production, reserves, exploration, investment, innovation, tax, and human resource aspects of the industry. Facts and Figures 2006 underscores the importance of the sector to Canada’s economy — the sector employs 388,000 Canadians, contributes $42 billion to Canada’s gross domestic product and accounts for 14% of annual Canadian exports.

— The preceding is an edited version of a release published by the Ottawa-based Mining Association of Canada. MAC is the national organization for the Canadian mining industry and its members are engaged in mineral exploration, mining, smelting, refining and semi-fabrication.

— Gordon Peeling, president and CEO of the Mining Association of Canada