Mining: more than creating jobs

The Canadian mining industry is one of the few industrial sectors where Canadian knowledge, technology, expertise and corporate leadership dominate internationally. But it’s a position we must work hard to preserve.

The Canadian mining industry is technology-driven, investing heavily in research and development to become a world-class innovator, producing the specialty minerals and metals required by consumers.

In Saskatchewan last year, mineral sales reached a $2.4 billion, despite low metals and potash prices. The industry creates direct and indirect employment for about 20,000 people in the province and the average mining employee earns more than $55,000 annually.

Mining is a strong employer in northern Saskatchewan and it plays a key role in the development of many communities, including Aboriginal communities. Nevertheless, the industry continues to face key challenges, such as reputation, competitiveness, market access, the environment and relationships with communities.

As an industry, we must continue to earn our social licence to operate. We must earn the consent and support of our stakeholders — the communities in which we operate, the people we employ, Aboriginal people whose land we may be developing, environmentalists, government and our shareholders.

Governments also must work harder to create a competitive climate for minerals and metals development. The federal government’s decision to reduce the corporate tax rate to 21% for all sectors save those in manufacturing and natural resources, is unfair and sends the wrong message to investors.

However, to achieve results, we need to take responsibility, too. We need to be more open and transparent about what we are doing. We need to listen and ask for input into our activities. And we need to recognize that providing jobs and creating wealth may be important, but they are not enough.

The preceding is a compilation of notes from a speech given to the business community in Regina, Sask., by Logan Kruger, president of Hudson Bay Mining and Smelting.