LETTERS TO THE EDITOR — Epp replies to resignation call

I would like to take this opportunity to respond to the article “Jake Epp should resign” (T.N.M. Sept. 21/92) by Steve Parry, speaking in his dual capacities as president of the Porcupine Prospectors and Developers Association, and as chairman of Save Our North campaign.

Mr. Parry put words in my mouth that either were not said, or were made in an entirely different context than the one he presents.

At the Mines Ministers’ Conference in Halifax last year, The Mining Association of Canada (MAC) called for an industry-government task force to study the investment climate in Canada as it relates to the mining sector. Led by my department, with input from the mining industry and provincial governments, the major areas of environment and taxation were examined, as well as some of the “micro” issues such as land access, exploration levels, and measures the developing world is taking to increase investment in mining. Preliminary results of this study were presented at this year’s Mines Ministers’ Conference in Whitehorse, Yukon. All parties have strongly endorsed the work that has come out of this joint effort.

This information is being added to data from industry consultations conducted earlier this year by MAC under the Prosperity Initiative, and from meetings I and senior staff from my office have carried out with industry across Canada. MAC has proposed the “Whitehorse Initiative,” also during this year’s Mines Ministers’ Conference. The initiative calls for a long-term mining strategy that will use as its foundation, the database now coming together from last year’s consultative efforts. The initiative has been embraced by all governments and industry, and is being led by a steering group, with progress to be reported around the time of the 1993 Prospectors and Developers Association of Canada (PDAC) convention. My department’s Mineral Policy Sector provides technical advice and support to the steering group. Although the problem of declining ore reserves and exploration funding has been included in the overall investment climate study, I would like to comment on several of the statements Mr. Parry has made in this regard. The issue of declining base metal reserves, and implications for Canada’s future production capability, have been discussed extensively with MAC, PDAC and industry officials. The implications of declining base-metal reserves were first recognized and brought to national attention by my department as early as 1987.

The issue appears in most policy documents recently produced by both industry and the federal government. Throughout the late 1980s, the industry chose to allocate a major portion of its exploration spending for gold, with little attention to reserves of base metals. Hence, I believe it is fair for my department to say that “it may be time for companies to reassess mineral exploration strategies,” particularly as they relate to other important mineral commodities.

Jake Epp

Minister of Energy, Mines and Resources

Ottawa