UNITED THEY STAND

Geophysics virtually was born and raised in Canada. The sad thing is that it might just die here too. The recession, the lack of mineral exploration, a maturing mining industry, globalization — all have combined to knock the wheels of the geophysical cart in Canada. In the past couple of years, 10 geophysical companies have gone out of business; another five of the larger firms were bought out by foreign multinationals. To stave off complete disaster, the Canadian Geophysical Congress was formed last year. The association now has enlisted about 60 Canadian-owned geophysics companies. (Both Ottawa and the provincial Ontario government are helping the organization.) The services it markets include environmental management, data processing, education and training, and geological, geochemical and geophysical surveys (the latter include fixed-wing, helicopter, ground and borehole). The founders believe that together they have a fighting chance to compete in the global market.

Just how bad it is for companies in the Canadian market was brought home at a recent meeting of the association. Statistics show that in 1987, 350,000 EM line kilometres were flown over Canadian soil. In 1991, just 90,000 km. “It looks like we’re heading towards zero line kilometres in Canada,” commented a conference participant gloomily. Other stats were equally alarming: Vancouver Stock Exchange financings — a barometer of junior mining’s vigor — were 165 in 1988, 25 in 1991; nearly 60,000 claims were staked in Ontario in 1987, 12,000 in 89. (More evidence can be found within the pages of this issue, in which EMR reviews last year’s mineral activity and provides forecasts.)

Clearly, CGC’s global thrust is timely and necessary. But this, the CGC’s second year, is a crucial one. The association now must work out the details of the working arrangement between it and its private-company members. All member companies agree that the situation is serious and that an umbrella marketing organization is requisite to the Canadian industry’s survival in a global market. Precisely how such a group can secure contracts and then parcel out the various pieces equitably to its member companies will be the true test.

I can only say — Go for it! Better this than sitting on your collective duffs, whining about how tough things are. The CGC is a creative and courageous attempt at problem-solving.

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