Peterson bullish on mining, sector must be competitive

Mining seems to appeal to Ontario Premier David Peterson.

The premier, who has been acting minister for some time of the province’s ministry of northern development and mines, said he is “enjoying the job and may keep it for a long time.”

He was speaking to a dinner audience following the annual meeting of the Ontario Mining Association, and outlined for the gathering of senior mining executives the three main challenges he sees facing the industry.

The first of these, he said, is to remain competitive for the future. And, despite the doomsayers, the industry does have a strong future in Ontario, which Mr Peterson said his government is committed to help ensure.

But to stay competitive, and ahead of the international competition, the industry must take the lead in research and development, on which its future and the future of the province and the country largely depends.

In this context, he singled out the work of three men — Walter Curlook and John Gordon of Inco, and Henry Brehaut of Dome Mines — for their work in the advancement of research efforts.

The second challenge facing mining, he continued, is to find new mines, as well as to ensure that existing mines stay open. On the former, he cited the recommendations of the Thompson Report on the junior mining industry, particularly in assisting juniors with their capital requirements.

“Most of you understand our desire to create a better investment environment for the juniors,” Mr Peterson said. “Successful juniors sometimes grow up to be majors, and are often the leading edge of exploration, bringing you prospects for development.”

Finally, he appealed to mining companies, in meeting the first two challenges, to do so in ways that are conscious of social, environmental and safety needs.

“Most firms recognize that sensitivity to safety, environmental or social issues is by no means incompatible with the ability to show a profit,” he said.

At the oma annual meeting earlier in the day, K. C. Hendrick, president of Noranda Minerals Inc. told association members in an address on Canada/U.S. free trade, that after languishing for a year the prospects for a trade agreement have “brightened considerably in recent weeks.”

Non-tariff barriers, threatened or implied, are the major reason for Canada’s concern about its trading relationship with the U.S., Mr Hendrick said, and this is particularly so for Canada’s mining and metallurgical industries where, with a few exceptions, U.S. duties are not a factor.

The world, he warned, is in the midst of a technological upheaval as it shifts to the post-industrial society.

“Canada is vulnerable with its dependence on basic industry and needs secure access to major export markets in order to participate in the changes taking place and to attract job-creating investment. “A decision to do nothing is a decision to slip backward. To go for the status quo or for more protectionism in Canada, risks an increasingly inefficient and uncompetitive industrial structure.”

The federal government, he said, has been bold and courageous in committing itself to negotiations with the U.S., and we should all get behind the effort.