Mining big wigs discuss social responsibility at CIM conference

Tapping into the Canadian economy will solve the issue of poverty more than counting on the government, said Phil Fontaine, national chief of the Assembly of First Nations, during a plenary session at the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) conference in Toronto today.

“The Canadian economy is the way out for us,” Fontaine said during the question and answer period with the audience. “Depending on the government doesn’t work.”

Fontaine then referred to the failed Kelowna Accord, developed under the Paul Martin Liberal government, which was supposed to inject $5 billion over 10 years to improve education, employment and living conditions for aboriginals. “Kelowna was a lost opportunity; a terrible loss,” Fontaine said.

But Fontaine also pointed out that First Nations want to actively participate in the mining industry, which is a major employer for many people already.

“We are open for business; we see mining as an opportunity,” Fontaine said.

Keynot speakers during the plenary session discussed how the Canadian mining industry is adding value to developed and emerging economies through education and other social programs.

But many wondered what could be done to ensure that people don’t suffer as much during economic downturns like the present one.

Jim Gowans, CEO of De Beers Canada and president of the CIM, said that when it comes to educational programs for such communities, it should be a collaborative approach between the industry and the government.

“In the current economic climate it’s difficult for us to be generous,” Gowans said, noting that De Beers has continued with its scholarship program but had to make other cutbacks.

Ian Pearce, president and CEO of Xstrata Nickel, said that everyone involved in the industry needs to be mindful and prudent of the cyclicality of mining.

Pearce said that in the last boom, there were a lot of projects with sensitive economics that were going forward and that he couldn’t understand why. “We shouldn’t operate this way.”

While solving the cyclical nature of mining is not possible, Pearce said that giving people training for transferrable skills like plumbing or electrician training can lessen the blow during downturns. He also said that giving students professional work experience is a win-win opportunity for both schools and companies.

“There’s a massive opportunity for us to use aboriginal communities to create something successful,” Pearce said. “Our involvement locally is transferable outside of Canada.”

Engin Ozberk, vice president of innovationa nd technology development for Cameco and Anthony Hodge, presidetn of the International Council on Mining and Metals also spoke during the plenary session which was moderated by Rex Murphy.