McLellan sells Canada to international investors

Canadian mining companies hold interests in more than 2,700 properties spanning 99 countries around the world. Anne McLellan, minister of Natural Resources Canada, wants to lure those companies back home to maintain an industry that each year contributes more than $20 billion to the national economy.

Speaking at the “Investing in the Americas” conference held here recently, McLellan pointed to the diamond discoveries in the Northwest Territories and the Voisey’s Bay nickel deposit in Labrador as proof that Canada has excellent geological potential for new finds. “And I can tell you, with confidence, that we have only scratched the surface of Canada’s mineral potential,” she added.

McLellan lead a “Team Canada” delegation consisting of government representatives from almost every province and territory, as well as Frank Pickard, president of Falconbridge; Walter Segsworth, president of Westmin Resources; Douglas Fraser, president of Placer Dome Canada; and Raynald Vezina, senior vice-president (Canada) for Cambior.

McLellan told delegates that progress in being made in regulatory reform. A “single-window” environmental assessment office was opened last year in Alberta and, this year, offices were opened in Manitoba, Nova Scotia and British Columbia. Ottawa is negotiating similar arrangements with Saskatchewan, Ontario and Newfoundland.

“We are committed to enhancing investor uncertainty by clarifying federal and provincial roles in environmental management while minimizing any overlap and duplication,” McLellan said.

“Similarly, we are making substantial progress through an improved fisheries policy on the application of fish habitat management, and we are working diligently to resolve uncertainty over land access rights versus economic development.”

Turning to the environment, McLellan said government and industry have to do more to improve the management of tailings in the wake of spills at Omai in Guyana and Marcopper in the Philippines. “To ensure the highest technical and environmental standards, I propose that concerned governments, international institutions and the world mining industry move now to improve the management of tailings,” she said. “Canada provided technical assistance in the Omai case, but industry and government have more to do. The implications of inaction are too great for industry or society to ignore.”

The theme of industry partnerships was also picked up by Frank Pickard, who discussed Falconbridge’s agreement with aboriginal communities to share in the benefits of developing the Raglan nickel project in northern Quebec. “We think it will be a low-cost, long-term producer,” he said, after describing the project as “challenging” because of its Arctic climate.

Pickard also noted that while Falconbridge lost out to rival Inco for control of Voisey’s Bay, it has a consolation prize of sorts in the form of encouraging exploration results at Raglan, with grades of up to 5% nickel being encountered at new targets.

Exploration is also taking place elsewhere in Canada and abroad, as part of a goal to be one of the world’s 10 largest companies by the year 2010.

“Voisey’s Bay would have fit with this growth strategy,” Pickard said, “but not at any price.”

Meanwhile, Falconbridge is preparing for growth by building a technology centre for the purpose of expanding its hydrometallurical expertise and upgrading its pyrometallurgical capabilities.

Westmin’s Segsworth discussed his company’s exploration success at the Wolverine massive sulphide project in the Yukon. He also outlined progress at the Myra Falls base metal mine in British Columbia, where productivity (measured in tonnes mined per employee) has increased by 50% since 1989. The operation is now turning a profit, and exploration has boosted reserves significantly. “We now have more ore at a higher grade than we’ve ever had in 30 years of operation,” he explained.

Placer Dome Canada, meanwhile, is busy preparing the Musselwhite gold project for production and sinking a new shaft at the Campbell gold mine, both in Ontario. “The new shaft will provide access to reserves below existing workings, access to exploration, as well as increase hoisting capacity and lower costs so we can bring lower-grade reserves into the mine plan,” Fraser said.

Cambior is looking to a busy year in Quebec, particularly the Abitibi region, where it holds a large land position. A program is under way to explore the Doyon gold mine at depth (as well as its new West discovery), commercial production has been achieved at Grevet, and increases are expected at the Bouchard-Hebert mine.

“Canada still remains the main base of Cambior’s operations,” Vezina said.