An apex organisation of the Canadian mining sector has called upon the Canadian government to work together with industry bodies so as to tackle key issues that are challenging the sector during this period of economic downturn and uncertainty. The issues were outlined in a brief submitted by Canadian Mineral Industry Federation (CMIF) to the 72nd Energy and Mines Ministers’ Conference which took place in Nova Scotia recently.

The CMIF brief, prepared with the Mining Association of Canada (MAC) and the Prospectors & Developers Association of Canada (PDAC), outlines the present situation of the mining industry, some of its key contributions to the country and critical areas where it called for government intervention.

It notes that the Canadian mining industry contributes more than $54 billion in GDP (3.4%) in 2013, employing approximately 380,000 people, and paying an estimated $71 billion in taxes and royalties to governments over the decade leading through 2012. Canada continues to be home to the greatest number of publicly listed mining companies and junior mining companies.

CMIF has outlined three crucial areas where government intervention can help the industry weather the current storm it is facing. These include:

• Improve the regulatory process and streamline the consultative processes involving government clearance and local community participation: The submission points to the increased regulatory processes causing delays due to understaffing of government departments; variance in interpretations related to regulation by central and state authorities leading to confusion and the lack of a clear and consistent procedures to be followed under legislations like CEEA (Canadian Environmental Assessment Act) 2012; MMER (Metal Mining Effluent Regulations) and SARA (Species at Risk Act)
• Address the higher costs of operating in remote and northern Canada: CMIF points out that the cost of new mines is as much as 2.5 times higher in northern Canada compared to more centrally-located regions, while remote mineral exploration can cost as much as six times that of non-remote projects. This cost premium is largely attributed to the lack of critical infrastructure in these regions, such as ports, power and roads.

It called upon governments to work together to invest in nation-building northern infrastructure, and use fiscal tools to facilitate private-sector infrastructure investments to catalyse remote exploration and new mining investment.

• Help juniors to secure access to capital: The mining federation asked for enhanced fiscal incentives that sustain grassroots mineral exploration in order to maintain the pipeline of projects that could become mines; and develop cost-effective ways to raise capital.

Pierre Gratton, President and CEO, MAC said, "Despite the current downturn, the industry continues to make enormous contributions to the social and economic well-being of Canadians. However, these contributions cannot be taken for granted. Working in partnership with industry, governments can take concrete steps now to position the sector for future success so that, together, we can seize growth opportunities at the earliest signs of the next upturn."

Rod Thomas, President, PDAC, added, “To compete globally, Canada must work to remain attractive as a destination for investment in mineral exploration and development. Canada must also maintain the components of the ecosystem that make the Canadian minerals industry unique, namely its world-class exploration and supply sectors, financing expertise and reputation as a consistent and stable jurisdiction in which to explore, build and operate mines."

Pic Caption: Energy and Mines Ministers from different provinces of Canada at the conference