How to regain Canada’s leadership in mining and exploration

Source: Canadian Mining Journal

Canada’s mineral exploration and mining industry is asking energy and mines ministers, in Winnipeg for their 73rd annual conference, to work on tackling several challenges that have resulted in Canada dropping to second place behind Australia as the most desirable mining destination in the world.

A brief submitted by the Canadian Mineral Industry Federation (CMIF) details seven policy priorities that will help the industry overcome current challenges.

  1. Financing for early stage explorationCMIF asks that all jurisdictions in Canada maintain and enhance fiscal incentives. In particular, the ministers are asked to support the renewal of the mineral exploration tax credit (METC) and to sustain the flow-through shares system. These measures have helped Canada attract billions of dollars in investment and led to the creation of thousands of jobs in remote areas of the country.
  2. Regulatory environmentThe ministers should ensure that the recently announced federal review results in an effective regulatory process that the public has confidence in, and that improves the competitiveness of the industry and attracts much needed mineral investment to Canada. Federal-provincial co-ordination in this area is critical and provinces are strongly encouraged to participate fully in the review.
  3. Aboriginal affairsCMIF recommends that governments support efforts to enhance the participation of aboriginal peoples in the industry through investments in health, education and skills training, and government benefits and resource revenue sharing. CMIF also recommends that governments examine and address challenges related to how they are implementing the duty to consult.
  4. Address the costs of operating in remote and northern CanadaCMIF recommends the creation of a northern infrastructure fund within the proposed Canada Infrastructure Bank, and strategic fiscal incentives to help offset the high costs of exploring and operating in remote parts of Canada.
  5. Climate change, clean technology and innovationThe federal government should invest $50 million over five years in the Canada Mining Innovation Council’s Towards Zero Waste Mining strategy to achieve mutual goals of reducing greenhouse gas emissions and environmental impacts, and to support the transition to a lower carbon future.
  6. Land withdrawalsRemoval of highly prospective areas is reducing the attractiveness of Canada as an exploration destination. CMIF is calling on all jurisdictions to ensure that mineral potential is factored into all land withdrawal decision making processes.
  7. Strengthening energy and mines ministers’ conferenceCMIF encourages mines ministers to undertake a study to understand how similar meetings are used as a means to drive improvements in government and industry performance.

Restoring Canada’s status as the top exploration and mining jurisdiction in the world will require concerted and sustained effort by all jurisdictions. CMIF looks forward to working in partnership with governments, industry, communities and aboriginal partners to support a sustainable and competitive Canadian exploration and mining sector.

The Canadian Mineral Industry Federation (CMIF) comprises more than 20 national, provincial and territorial associations that represent various components of the Canadian mineral and mining industry. It is supported by both the Mining Association of Canada (www.Mining.ca) and the Prospectors and Developers Association of Canada (www.PDAC.ca).