EDITORIAL PAGE — Exporting expertise

October is “Export Month” in Canada, and this year, companies supplying goods and services to their traditional customers in the mining sector have much to celebrate.

Canadian mining companies are busy at home and, at the same time, are pursuing mineral opportunities in almost every corner of the globe, including regions with no history of modern exploration or mining.

At the end of 1995, companies of all sizes on Canadian stock exchanges had a worldwide portfolio of more than 7,300 exploration and production properties.

Some 2,750 of these (about one-third of the total Canadian portfolio) are in 99 countries around the world.

Natural Resources Canada estimates that, between 1992 and 1995, the annual compound rate of growth in the acquisition of foreign properties by companies of all sizes listed on Canadian exchanges was more than 15%. Though the rate of acquisitions slowed down to 10% between 1994 and 1995, it nonetheless resulted in an increase of 300 Canadian properties abroad last year. It is now estimated that, between 1992 and 1995, properties held by Canadian companies abroad increased to almost 40% from 20% of the total Canadian portfolio of properties.

This worldwide explosion in exploration and mine development has translated into dramatic growth opportunities for drilling companies, assay laboratories, engineering firms, geophysical companies and consulting geologists.

The fact that Canadian companies are leading the charge for global marketing opportunities is no surprise, as mining has been a cornerstone of the country’s economy for well over 100 years. To achieve and maintain this status as a leading mining nation, Canadian mining companies have had to develop sophisticated and innovative techniques to deal with rugged terrain, harsh climate and specific geological conditions. Thus, in addition to being a leading mineral producer, Canada is also a major supplier of mining-related services and technology. The expertise developed by Canadians in finding, developing and mining a variety of commodities has become a knowledge-based export item valued throughout the world.

Canada has more than 600 companies which receive over 30% of their revenue by supplying the mining industry. As well, about 60-70% of Canada’s geophysical industry sales consist of exports of equipment and services.

Natural Resources Canada estimates that Canada’s airborne survey companies control 70% of the world market, while Canadian geophysical equipment manufacturers, software developers and data interpretation companies each constitute about 60% of their respective world markets.

Canadian drilling firms are popping up in every part of the globe.

Quebec-based companies, for example, are working in francophone Africa, while other Canadian-based firms are teaching Spanish to their key personnel in order to penetrate new markets in Latin America.

Canadian assay laboratories are also expanding into new international markets, much to the relief of securities regulators who want to avoid any repeats of the Timbuktu salting fiasco.

Natural Resources Canada says it best: “Through their presence abroad, Canadian companies are helping many countries to develop their mineral resources and, as a result, a more open economy. For the foreseeable future, Canadian companies will continue to be a driving force for exploration and mining abroad, and further penetration of foreign markets by Canadians can be expected”.

All of which goes to show that, like hockey, mining is something Canadians do just about better than anyone else.