Industry concerns presented at conference

Industry representatives took advantage of the unusually open format at this year’s Mines Ministers’ conference to express their concerns about the continuing demise of mining and particularly exploration.

Staged at the Halifax Hilton Sept. 22-25, the 48th annual gathering focused on “the importance of the mineral industry to Canada.” Rather than the traditionally limited collection of ministers, senior government officials and selected industry delegates, the conference was expanded to include a cross-section of industry, native groups and labor as well as members of the media. Attendance totalled 187 compared with 147 at last year’s meeting in Winnipeg.

Although federal Mines Minister Jake Epp was detained in Ottawa to help wrap up Canada’s constitutional package, his parliamentary secretary, John MacDougall, was on hand to co-chair the meeting with Chuck MacNeil, Nova Scotia’s minister of natural resources.

Workshops on topics ranging from environmental issues to financial concerns provided a forum for frank discussions between politicians and industry advocates. The new format was overwhelmingly popular and is likely to be used at next year’s meeting in the Yukon, MacDougall told The Northern Miner. “It was an excellent conference,” said Keith Hendrick, chairman of the Mining Association of Canada (MAC) and of Noranda Minerals, who represented the industry during the conference’s opening session. “Nova Scotia has responded magnificently to the need for more industry representation,” added George Miller, president of MAC.

But the veneer of camaraderie between government and industry broke down somewhat when Fenton Scott, president of the Prospectors and Developers Association of Canada, rose to the podium. As Scott entertained his sympathetic audience with his examples of government incompetence, MacDougall’s smiles turned to frowns.

Scott was trying to drive home the point that the federal government’s fiscal policy — including the high value of the Canadian dollar relative to the American dollar and high interest rates — is killing the Canadian mining business. This theme was reiterated throughout the conference by many of Scott’s contemporaries.

Hendrick said, “It is essential that the contribution of mining and the other natural resource industries to Canada’s economy be maintained.” Canada’s resource industries have traditionally supported the nation’s high standard of living and positive trade balance, he said. Mining’s contribution to Canada’s economy is considerable, with more than 500 mines employing 106,000 people directly, and with a ripple effect which triples the economic impact. Last year, the value of mineral output exceeded $20 billion, representing 4.5% of Canada’s gross national product. Mining accounts for 18% of the value of the country’s exports.

However, “Canada’s position as a mineral producer has slipped in recent years,” said the MAC chairman. For example, in spite of a 200% increase in gold output in the 1980s, Canada dropped to fifth from third place among world gold producers.

To assess Canada’s relative attractiveness as a place for mineral exploration and development, the chairman of the MAC is recommending the establishment of a joint task force. It would consist of federal and provincial officials and industry representatives drawn from national, provincial and territorial associations. Their role would be to assemble reliable data on recent trends in exploration and development spending by Canadian companies in Canada and abroad.

For the first time in recent history, the issue of enhanced flow-through financing was noticeably absent from the industry conference agenda. Instead, explorationists called for a return to a 3-year tax holiday for new mines and regulations that would force senior companies to put a percentage of their revenues back into exploration.

Other issues, including access to land, provincial-federal duplication of environmental regulation and tax treatment of mine reclamation funds, were also discussed.