Toronto, Ontario
March 2, 2015
Thank you Rod [Rod Thomas, President of the Prospectors and Developers Association of Canada]. Good morning everyone. I am very pleased to be here and to bring remarks on behalf of my colleague, the Honourable Greg Rickford.
Let me begin by welcoming all of you on behalf of the Harper Government. I know you’ll have a productive and enjoyable time here in Toronto. This convention is about bringing the world’s mining industry to the world’s mining capital. With more than 25,000 attendees representing over 100 countries, this has become the go-to convention for prospectors and developers. I’m delighted to be here to help kick things off.
I am joined this week by a number of my colleagues and no fewer than eight Cabinet Ministers. This kind of federal participation tells you that our government understands the importance of mining to Canada. In fact, Stephen Harper is the first Prime Minister to ever attend a PDAC conference when he came here last year.
Our goal is straightforward — a thriving mining industry — and we are proud to work with international partners, industry, provinces, territories and Aboriginal communities as we realize that goal together. The importance of mining and mineral processing to Canada is clear in the numbers. This industry contributes approximately $60 billion to our GDP. That’s more than a $10-billion increase over 2009, and it accounts for one-fifth of Canada’s merchandise exports.
It employs some 380,000 Canadians, including 10,000 Aboriginals. While recent years have brought real challenges in the capital markets, Canada’s mining sector continues to innovate and contribute to our economy. Nearly 60 percent of publicly traded mining companies are listed on the Toronto Stock Exchange. Together, they account for almost half of the world’s equity financing for mining and mineral exploration/
Perhaps most impressively, Canada remains the top destination for mineral exploration, attracting 14 percent of budgeted exploration expenditures. My message to you today is that the Government of Canada is delivering for the mining industry, starting with sound economic fundamentals. Canada’s economic resilience reflects the actions our government took before the global crisis: lowering taxes, paying down debt, reducing red tape and promoting free trade and innovation.
Our government is also proud of the efforts we have made to make Canada the best country in the world in which to do business. Because there is no better safeguard for the financial security of Canadians, their families and their communities than having good, well-paying jobs, the kinds of jobs that are more plentiful in a strong stable national economy.
To that end, we have lowered taxes on businesses of all kinds and encouraged the provinces to do the same. Canada now offers the lowest overall tax rate on new business investments in the G7. Our flow-through shares mechanism offers tremendous incentive for financing exploration. What’s more, Canada’s mining royalties are essentially profit-based: if you don’t make money, you don’t pay royalties.
We’re not just delivering on the tax side. Through our plan for responsible resource development, we have also modernized our regulatory review of major resource projects, eliminating duplication and providing investors with predictable beginning-to-end timelines. We have done so while improving environmental protection and enhancing Aboriginal engagement.
Prospectors and developers looking for a solid place to invest their capital will find no better place than right here in Canada. Yesterday, our government made three important announcements to further support mining in Canada. First, we propose to extend the Mineral Exploration Tax Credit for another year. Second, we propose to expand the definition of Canadian Exploration Expenses to include the costs associated with environmental studies and community consultations for grassroots exploration.
Finally, together with the Province of Ontario, we announced significant new funding to determine the best option for an all-weather road in Ontario’s Ring of Fire. Taken together, these measures will help companies raise much-needed financing, boost exploration and create jobs. Our government also knows how important innovation is to competitiveness, to environmental protection and to health and safety.
That’s why we are supporting the Targeted Geoscience Initiative which stimulates innovation in mineral exploration, especially for deeply buried deposits. This initiative has already produced significant results, including creating a new model that identifies a key geological element for the formation of gold deposits; a new, high-resolution gravity survey that was used to define base metal deposits in the Ring of Fire; and research that is changing our understanding of the structure and genesis of gold, nickel, copper, zinc, lead and uranium deposits.
Today, I am pleased to announce the release of a publication on uranium that synthesizes the results from five years of geoscience research to offer new approaches for finding deposits. Our government has also committed $100 million to the Geo-mapping for Energy and Minerals — otherwise known as GEM — program, which provides industry with better geological data to inform land use and resource management decisions.
Of course, a key part of mining in any jurisdiction is honesty, openness and transparency. I am proud to report that Canada has passed the Extractive Sector Transparency Measures Act, making Canada a leader in anti-corruption efforts around the globe. As we implement this law, we will continue working closely with industry, civil society, and Aboriginal communities, as well as provincial and territorial governments.
Our government expects and encourages Canadian companies working abroad to respect all applicable laws and international standards. We expect them to operate transparently and in consultation with host governments and local communities. That’s why we have also developed the Corporate Social Responsibility Strategy and we are producing a checklist to help companies address potential environmental and social challenges when working abroad.
Let me just touch on the Ring of Fire again. As you know, this is no ordinary mining development. This is an opportunity to materially improve the economic prospects and quality of life for the people in the region. Our government understands the potential of this project. We have invested more than $35 million towards its development, including Aboriginal capacity building, support to small business and skills development and training.
The Minister speaks regularly with his Ontario counterpart, the Honourable Michael Gravelle, to discuss the province’s plans to develop the Ring of Fire and agrees that strong dialogue and continued cooperation are essential to realize the area’s full potential. Our focus remains on specific tangible proposals for infrastructure planning for extractive activities and improved access to remote communities. The Building Canada Fund is well positioned to support specific infrastructure proposals for resource development projects like the Ring of Fire.
I began by saying that our government’s goal is a thriving dynamic mining sector. We know how important this is to achieving our top priority: jobs and growth for Canadians. That is why we are working with our partners to make this industry even stronger and Canada an even better place in which to invest. Thank you for coming, for the opportunity to address you this morning, and I wish you all a very successful conference.
