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December 15, 2012, No. 97

Up Front

PDAC President Accompanies Governor General of Canada on Latin American Tour

PDAC President Glenn Nolan was part of the delegation accompanying His Excellency the Right Honourable David Johnston, Governor General of Canada, on a trip to Mexico, Peru and Guatemala, the first week of December. The purpose of the trip was to promote Canada’s ongoing engagement in the Americas and its three goals of increasing economic opportunity, strengthening security and institutions and fostering lasting relationships.

“The trip highlighted for me the importance that the Canadian mineral industry plays in these countries. The message from the host countries was clear—that Canadian companies not only bring significant investment but also contribute to the development of local and rural economic and community development, jobs and infrastructure," says Mr. Nolan. “It was an honour to be invited by His Excellency and have the opportunity to convey the importance of the Canadian mineral industry."

Mr. Nolan joined other leaders from the fields of business, education, and social justice and development in the delegation. During the tour, members of the delegation shared their experiences and knowledge with their counterparts and highlighted Canada’s involvement in the three countries.

TMX Event Highlights Importance of Mining to the Canadian Economy

On November 14, the Mining Association of Canada in partnership with the PDAC and the Ontario Mining Association hosted an industry event at the TMX Broadcast Centre in downtown Toronto. The Honourable Joe Oliver, Minister of Natural Resources, was the featured speaker for the event. Members of industry, government officials and media gathered to hear the minister and the heads of the host associations give remarks about the importance of the industry to the Canadian economy.

In his remarks, PDAC Executive Director Ross Gallinger said the natural resources sector, and in particular the exploration and mining sectors, are vital to Canada’s economic sovereignty. He discussed some of the challenges the junior sector faces, and stressed the importance of the Mineral Exploration Tax Credit to the sector. “One of our goals is to make the 15% Mineral Exploration Tax Credit a permanent feature of the federal income tax system. This would provide industry with long-term certainty to plan crucial investments in exploration programs,” said Mr. Gallinger. View photos of the event here.

PDAC Attends China Mining Conference

PDAC President Glenn Nolan and PDAC board member Keith Spence attended the China Mining Conference and Expo in November in Tianjin. Conference attendance was 6,000, up from last year’s 5,000, with delegates from 57 countries.

The conference program included topics such as China’s mining policy, CSR, commodities, China outbound investments, exploration updates, mining capital markets, mineral economics, and technical issues in exploration. Mr. Nolan co-chaired a conference session on mining opportunities in Canada, and Mr. Spence chaired a session on Chinese overseas mining investments and participated on a panel on the same topic.

Natural Resources Canada and the Canadian Embassy in China held a post-conference forum at which Canadian companies promoted their projects. The forum also promoted Canada as a leader in exploration and mining. The Canadian Institute of Mining, Metallurgy and Petroleum hosted a one-day seminar on mining finance in Beijing; Mr. Nolan and Mr. Spence were speakers at the event.

PDAC 2013 Award Winners Announced

The PDAC announced the recipients of this year’s awards for outstanding contributions and excellence in the mineral industry. The PDAC’s prestigious awards program goes back to 1977, when the first Bill Dennis Award for prospecting success was handed out. Recipients of the 2013 awards will be honoured at the PDAC’s awards evening on March 4, 2013, at the Fairmont Royal York Hotel.

Pretium Resources is the recipient of the Bill Dennis Award for prospecting success or for a Canadian mineral discovery; New Gold is the winner of the Viola R. MacMillan Award for company or mine development; Daniel G. Wood is the recipient of the Thayer Lindsley Award for international mineral discoveries; Ronald P. Gagel is the recipient of the 2013 Distinguished Service Award; Cameco Corporation is the winner of the Environmental and Social Responsibility Award; and Windigo Catering is the recipient of the 2013 Skookum Jim Award for Aboriginal achievement in the mineral industry.

Additional information about the awards is available on the PDAC website.

Advocacy

PDAC Calls for Members to Contact Finance Minister James Flaherty 

Over the past two months, the PDAC has been working closely with the Mining Association of Canada (MAC) to engage the federal Department of Finance, outlining concerns over proposed changes to Canada’s tax laws that will potentially have profound, negative impacts on investment into Canada’s mining sector.

The proposed regulatory changes to foreign affiliate rules first announced in the 2012 Federal Budget and now contained in Bill C-45 are intended to prevent foreign multinationals from extracting profits from their Canadian subsidiaries without paying Canadian withholding tax. The PDAC and other industry stakeholders assert the new rules would deter foreign investment in Canada, and unnecessarily challenge Canada’s place as a leader in mineral exploration, development, financing, mining and related technologies, services and activities.

To articulate your concerns and encourage Finance Canada to work with the PDAC and MAC to find a solution, please send a letter to the Honourable James Flaherty, Minister of Finance. A template and more information on the proposed tax law changes are available here.

Mining Day on the Hill 2012

The PDAC participated in another successful Mining Day on the Hill on November 20. The event, organized by the Mining Association of Canada, consisted of more than 80 meetings by a dozen teams over the course of a single day of lobbying. Teams met with several key ministers as well as both government and opposition MPs, and engaged senior officials from a variety of ministries, including: Natural Resources, Environment, Aboriginal Affairs and Northern Development, Finance, and the Prime Minister’s Office.

PDAC representatives highlighted key issues important to its members as outlined in the PDAC’s pre-budget submission, including the renewal of the Mineral Exploration Tax Credit. The day also provided the opportunity to raise concerns over the proposed regulatory changes to foreign affiliate rules.

Parliamentary Committee Report on the Role of the Private Sector in International Development

In November 2011, PDAC Executive Director Ross Gallinger spoke to the House of Commons Standing Committee on Foreign Affairs and International Development to inform its deliberations on the role of the private sector in achieving Canada’s international development objectives. The Committee’s report was released last month, with a substantial section devoted to the natural resources sector.

The Committee acknowledged that, under the right conditions, natural resources can play an important role in the development of local and national economies. To help ensure that those conditions are in place, the Committee recommended that the Canadian International Development Agency (CIDA) work to strengthen institutional capacity in developing countries with significant natural resource sectors, focusing in particular on strengthening governance and consultative processes at the local level.

The Committee also recommended that the Government of Canada “review the policy recommendations, when completed in 2013, of the Resource Revenue Transparency Working Group.” The PDAC helped establish this group in September 2012; background information on the group is available here.

Lands and Regulations

PDAC 2013 Technical Session: Land Access Challenges and Solutions

The Land access challenges and solutions session is intended to garner an industry-based, nation-wide discussion about the on-the-ground difficulties that occur when undertaking exploration and development activities, and provides case-study based solutions to identified challenges.

The session, to be held Sunday, March 3 at 3:00 p.m., will be divided into five presentations, each focused on a specific land access challenge/solution in one of the following categories: land use planning, the duty to consult and accommodate, obtaining social license, regulatory frameworks, and environmental considerations and/or infrastructure. For more information, click here.

CSR

Workshop on Resource Revenue Transparency

The Resource Revenue Transparency Working Group will be holding a workshop in Toronto on January 15, 2013, to provide an update and seek feedback on its progress to date. Launched in September 2012 by the PDAC, the Mining Association of Canada, Publish What You Pay Canada, and the Revenue Watch Institute, the group is developing a framework for the mandatory disclosure of payments to government by Canadian extractive companies.

The aim of the workshop is to seek feedback on key decision points made by the group to date, including the scope and format of the reporting framework. The workshop will also provide a forum to discuss next steps towards the completion and implementation of the framework. Click here to register or contact [email protected] for more information.

Corporate Knights Canadian Mining Sustainability Ranking

On November 15, Corporate Knights, the Toronto-based media and investment research company, announced the results of its inaugural Canadian Mining Sustainability Ranking. Barrick Gold emerged as the top-performing company in the ranking, with Teck Resources following in second place, and Inmet Mining in third. Click here for more information and to see the full rankings. 

Student Affairs

PDAC Announces New Bursary for Yukon College

On November 22, the PDAC announced a new $1,000 bursary for a student in the Mineral Resources Program at Yukon College in Whitehorse. “Programs like this one are integral to our industry—providing skilled workers for which there is high demand,” said Felix Lee, Co-Chair of the PDAC’s Human Resource Development Committee and President of ACA Howe International Ltd.

The PDAC now has bursary agreements with 10 colleges and technical schools across Canada. This bursary is the first supporting students in the North. Yukon College recently introduced the Mineral Resources Program to help meet the needs of the sector in the Yukon during the territory’s mining boom.

PDAC 2013 Convention

Registration for Convention Now Open

Registration for the Convention is now open—online registration can be accessed on the Convention website. Registration can also be completed by fax (905.463.1854) or via mail. A copy of the registration brochure has been mailed to each PDAC member, and is also available online. Register by February 8, 2013, to take advantage of early registration rates!

PDAC 2013 Accommodations

Looking to book your accommodations for Convention? Many hotels sell out early—to avoid disappointment, reserve your accommodations today. Accommodation information and rates can be found here.

Terrace Meeting Place

Book the terrace meeting place for your meetings at Convention. This newly renovated space on the mezzanine level directly above the south entrance offers semi-private meeting rooms for groups of up to ten, and is available for one-hour bookings. Reservations must be made on-site during the Convention and will be accepted on a first-come, first-served basis.

Government News

New Institute for Extractive Industries and Development

On November 23, the Honourable Julian Fantino, Minister of International Cooperation, announced that the University of British Columbia, working in coalition with Simon Fraser University, has been selected to operate the new Canadian International Institute for Extractive Industries and Development (CIIEID).

The new institute, funded by a $25-million grant from the Canadian International Development Agency (CIDA), will offer developing countries best practice knowledge in extractive technology, public policy and regulations, and health and education outreach in order to empower industry, governments and non-governmental organizations to reduce poverty while protecting the environment. Among the first tasks of the CIIEID are a strategic analysis of the sector, delivering of educational courses in Canada and overseas, and two conferences. The initial activities will focus on countries in Latin America, Sub-Saharan Africa and Asia. For more information, click here.

Saskatchewan Launches Online Mineral Staking

The Government of Saskatchewan has launched the Mineral Administration Registry Saskatchewan (MARS), an online system for issuing mineral permits, claims and leases. The MARS system, which went live on December 6, uses highly accurate electronic maps to define the location of mineral parcels in the surveyed and unsurveyed parts of the province. MARS will allow users to identify lands available for staking and make a request online for the issuance of new minerals dispositions. For more information, click here.

Other News

Global Mining and Metals Deal Value and Volume Down: Ernst and Young Report

Ernst & Young published its biannual “Global Capital Confidence Barometer: Mining and Metals” at the end of November, reporting that global mining and metals deal value and volume are down globally, with Canadian numbers falling 43% and 16% year over year in the first nine months of 2012. For more information and to read the report, click here.

OMA Releases Study on Mining Sector’s Economic Contribution 

The Ontario Mining Association released its 2012 mineral sector economic impact study “Mining: Dynamic and Dependable for Ontario’s Future” on December 6. The report examines different aspects of the Ontario mining industry, including its importance to the provincial economy, and the industry’s efforts to make this contribution in an increasingly safe and sustainable way. For more information and to read the report, click here.

Deloitte Reports on Top 10 Mining Trends for the Year Ahead 

At the end of November, Deloitte released its annual “Tracking the Trends” report for the mining sector, which provides commentary and analysis of the top 10 issues most likely to impact the industry in 2013 and provides a range of responses that companies can adopt to prepare for shifting industry dynamics. For more information and to read the report, click here.

Looking Ahead

PDAC at Roundup 2013

The PDAC will be participating in AME BC’s Mineral Exploration Roundup Conference 2013 at the Westin Bayshore Hotel in Vancouver, January 28 – 31. Stop by the PDAC exhibit—booth number F4.

B.C. Career, Education & Recruitment Fair

From May 14 – 15, 2013, the 2G Group in partnership with the Pacific News Group and the Aboriginal Human Resource Council will host western Canada's biggest Career, Education & Recruitment Fair at the Vancouver Convention Centre. For more information about registering, exhibiting or sponsorship, click here.