Mining industry springs to defence of VSE

Through advertisements appearing in local and national publications, the industry, as prime end- users of this risk capital, lent its support by responding to scathing attacks on the VSE by several leading U.S. business publications.

“The particular harshness of VSE-bashing during the last few months prompts a response,” said John Brock of the mine finance committee of the British Columbia and Yukon Chamber of Mines.

As a counter-point to the negative publicity, the campaign outlined the production achievements of companies listed on the VSE and involved in exploration and development of mines in Canada, the U.S. and worldwide. The campaign was funded by contributions from mining and exploration companies which also helped support a separate campaign launched by the VSE.

At a recent press conference, Brock pointed out that over its entire history, the VSE raised an estimated $5-6 billion for the mining industry. During the period 1971 through 1988, financings totalled $4.7 billion, of which about $3.8 billion was directed to mineral exploration and development.

“This funding of early stage exploration and development has resulted in mines that have a value in excess of $60 billion based on their current known reserves and past production,” Brock said. The value of metals produced was estimated at $20.5 billion, and value of current known ore reserves was estimated as $42.5 billion. Statistics for the 59 companies researched span the past 30 years and include the latest available data.

“The VSE has done its job in raising money, and mining and exploration companies have done their job in finding mines,” Brock said.

Along with Jack Patterson, manager of the Chamber of Mines, Brock stressed the need for ongoing exploration to maintain and increase Canada’s declining reserve base. Brock also said the mining industry does not support increased regulations for VSE-listed companies in the resource sector.

“Enforcement should now be the key,” he said.

]]>