Future is bright: minister

As federal minister of natural resources, I look forward to playing a leading role in helping to improve the quality of life of Canadians through sustainable resource development. Ensuring that future generations share the economic, social and environmental benefits that we enjoy from our natural resources is an overarching goal for Canada.

My department is taking an integrated approach to policy, science and technology, and knowledge for sustainable development. I believe we can enhance the responsible development and use of all of Canada’s natural resources, as well as the competitiveness of the country’s natural resources products and related industries.

I want to highlight four encouraging developments:

– the mining sector’s investment climate is improving;

– the government of Canada is committed to innovation and skills development.

– the future of Canadian mining is bright; and

– we are increasing our efforts internationally.

Canada’s natural resources sector is a cornerstone of our economy. With some 400,000 employees, the minerals and metals processing industries are the lifeblood of many small and large communities across the country. These industries are high-tech, knowledge-based and generate strong economic impact.

In fact, between 1998 and 2001, Canadian brokers raised almost half of the world’s equity financing for mineral exploration and development.

And flow-through shares are once again attracting significant amounts of investment to mining exploration. You called on government to create “super” flow-through shares — and the federal and several provincial governments responded with new tax incentives linked to these shares. My staff is working on an awareness campaign to promote super flow-through shares.

We are also trying to find a means to extend the lower corporate tax rate to the mining sector while, at the same time, improving the tax structure.

In the new, global knowledge economy of the twenty-first century, the government of Canada has launched a national strategy to build a more innovative Canada, resulting in jobs and growth.

For example, Canada’s natural resources sector is the largest investor in high-tech equipment, spurring growth in important new sectors such as geomatics, robotics and climate change technologies.

To sustain and increase our level of expertise, the minerals sector needs qualified workers. The Natural Resources Skills Colloquium held in Regina in December 2001 was a step in developing a collaborative plan for the future.

Among other things, the conference focused on encouraging more youth and Aboriginal Canadians to get involved in the mineral resources industry. What we want to show young Canadians, in particular, is that mineral exploration is one of the most innovative and creative sectors of our economy.

Over the next few months, the government will engage Canadians, including business, labour and academia, in a discussion of the key issues surrounding innovation and skills and learning in Canada.

Meanwhile, mineral exploration and development have matured from their humble beginnings into one of Canada’s strongest economic sectors. This year, the Geological Survey of Canada (GSC) is celebrating 160 years of service.

The future of mining in Canada depends on finding new mineral sources.

Take the Targeted Geoscience Initiative (TGI), for example. This $15-million federal initiative, targeted at promising deposits, is resulting in a total of $42 million in new geoscience investment. TGI projects are using new analytical instruments and techniques to upgrade our knowledge of areas with high mineral potential.

Previously unknown kimberlite deposits have been discovered recently in the Timiskaming region of Ontario and in Qubec, north of Chibougamau.

Our focus encompasses the whole “life-cycle” of minerals and metals operations. It affects all stages, from initial exploration, to production, to when operations cease and these sites are returned to their natural state or developed for other uses.

An outstanding example is the Sullivan mine in Kimberley, B.C., which was shut down late last year. Teck Cominco has been working with us and with local officials to ensure the community does not disappear with the mine, and to make sure the mine does not leave behind a negative environmental legacy.

I am also impressed with the Environmental Excellence in Exploration program, and look forward to its progress.

Natural Resources Canada is also helping to export our sustainable development expertise around the world.

Furthermore, we are partners in the planned Global Mining Research Alliance, which links major government-funded mining research organizations in Canada, South Africa, Australia and the U.S. — the world’s most advanced mining countries. We will share research and technical expertise with others around the world.

In South America, the Multinational Andean project, funded by the Canadian International Development Agency and led by my department’s GSC, mapped the potential for mineralization in four South American countries. This project is helping the people in South America, while opening up new markets for companies in Canada.

I was just in South Africa for the Indaba mining conference. Throughout that continent, our companies are helping to promote sustainable mining practices. At the same time, we are leading the way in promoting sustainable development in mining, most notably at the World Summit on Sustainable Development, which will be held in Johannesburg in 2002.

At the summit, we will be asking the world to begin a dialogue on sustainable development in mining and metals, to seek ways to contribute to economic growth and to alleviate poverty.

— The preceding is an edited version of a speech presented at the opening of the 2002 annual convention of the Prospectors & Developers Association of Canada. The author is the federal minister of Natural Resources.