PDAC questions Ontario bill

The Prospectors & Developers Association (PDAC) has made submissions to hearings into Bill 97, which proposes that resource companies intending to extract natural resources from First Nations traditional lands in northern Ontario must negotiate a comprehensive “revenue-sharing agreement” with the First Nations and the Ontario government.

After the bill passed second reading, it was sent to the standing committee on finance and economic affairs. The committee then agreed to hold public hearings in remote northern communities.

The issue has national implications since similar concerns about revenue-sharing are being voiced in jurisdictions across the country.

Submissions were also made by the Ontario Mining Association, the Ontario Prospectors Association, and the Northern Prospectors Association.

In his written submission, PDAC President Peter Dimmell asked if the revenue to be shared would come from tax revenue collected by the government and re-distributed to aboriginal communities or if it would result from a new royalty or tax imposed on the resource companies operating in northern Ontario.

Representing the Northern Prospectors Association (as well as the PDAC) was Michael Leahy, who said the association has “grave concerns” about the potential effects of Bill 97 on exploration in Ontario. “If it [the bill] results in an additional tax being levied on mining, it will stifle exploration and harm the economy. Any action contemplated to improve the northern economy should be designed to encourage exploration and mining, not stifle it.”

The PDAC will continue to monitor hearings.