Advocacy • About the PDAC

Environmental Excellence in Exploration (e3)
In August 2001, the PDAC launched the Environmental Excellence in Exploration project. The aim of this project, known informally as e3, is to provide the international exploration community with the most current information on responsible environmental practices around the world. The information will be contained in an ‘e-manual,’ a multimedia information database and management system that will allow users to answer any environmentally related question for any exploration project anywhere in the world. Information for the manual will be derived from company sources, including training and other environmental protection material.

Development costs for the e-manual are estimated at $500,000. Project manager Neil Westoll is now developing a beta version of the e-manual for completion in March 2003. Full details are at www.pdac.ca/e3.

Orphaned and abandoned mine sites
The PDAC, together with MAC, NRCan and provincial governments, organized a multi-stakeholder workshop on Canada’s orphaned and abandoned mine sites in Winnipeg on June 26 and 27, 2001. The objective was to develop recommendations which could be carried forward to the 2001 Mines Ministers Conference in September. Discussion topics included: building a national inventory of orphan sites and setting standards and rational expectations; community perspectives, ownership and liability issues, and funding models. Encouraging progress was made, particularly in the area of responsibility for the sites and funding for their reclamation. In its brief to the mines ministers, the PDAC urged them to approve the formation and funding of a national, multi-stakeholder advisory committee to address the issues and initiatives identified at the workshop and to report back to them in 2002. The mines ministers approved this recommendation. The PDAC continues to be involved in this project through membership in and support of the advisory committee.

Global Mining Initiative / MMSD
The Global Mining Initiative (GMI) was formed in 1999 by the CEOs of nine of the world’s largest mining companies. Its objective is to develop industry’s response to the challenge, set out in the 1992 Rio Earth Summit, to incorporate sustainable development into business practice. GMI’s work is three-fold: preparing an industry presentation for the Rio Plus 10 Earth Summit; talking with industry associations around the world to spread the message of change throughout the industry; and establishing the two-year Mining, Minerals and Sustainable Development (MMSD) research and policy development project.

PDAC director Ian Thomson is a member of the MMSD North America working group which has been examining the future direction of the mineral industry in North America. Tony Andrews participated in selected activities of MMSD global. 

The draft report of the Mining, Minerals and Sustainable Development (MMSD) was released in March 2002. The report was the culmination of a two-year process of consultation and research the objective of which was to understand how to maximize the contribution of the mining and minerals sector to sustainable development at the global, national, regional and local levels. The PDAC has responded to the draft report.

The effectiveness and success of the PDAC’s 1999 and 2000 campaign to institute a tax measure to revitalize mineral exploration became evident in October 2000 when the federal government announced a new exploration investment tax credit. This program, which took effect on October 19, 2001, and will be in place until 2004, provides for a 15% up-front, non-refundable income tax credit for flow-through share investors. The credit is in addition to the existing fully deductible regular flow-through and is known as ‘super’ flow-through. Since the announcement of the ‘super’ flow-through, five jurisdictions - British Columbia, Ontario, Quebec, Saskatchewan, and Yukon - have announced additional provincial tax incentives or extensions.

Awareness of the new program is key and information sessions and seminars were held during the fall of 2001 across Canada. A special Globe and Mail Report on Business supplement dedicated to the new program was published in October 2001.

The PDAC continues to seek opportunities to promote the program but is also turning its attention to: possible modifications to the existing flow-through share rules; an extension of the acquisition period from December 31 to the following March 1 to coincide with RRSP season; an allowance for up to 15% of ‘soft dollar’ flow-through financing to be eligible for ‘hard dollar’ financing costs; a provision that would allow companies as well as individuals to participate. The association will also be discussing with the federal government how the temporary tax credit should be concluded.

The inability of junior companies to raise capital and the hurdles that they have to face to raise money continue to dominate the work of the Securities Committee. The onerous listing and reporting requirements and fees, together with the consolidation of the capital markets and the disappearance of the CDN, have had a detrimental impact on junior companies. The committee has made continuing efforts to effect change, focusing its attention recently on NI 54-101 on shareholder communications. The PDAC has also joined a coalition of groups lobbying for improvements in this area, is supporting the formation of CNQ, and has initiated a relationship with the TSE/CDNX to work together on common objectives, particularly the establishment of a national securities commission. The latter issue formed a major part of the PDAC’s brief to the 2001 Mines Ministers Conference. Since that time, discussions have been held about this concept with senior federal government officials (who support it), and strategic alliances are being contemplated with TSE/CDNX, the Canadian Chamber of Commerce, and mining associations across Canada to move the proposal forward. The possibility of establishing a national industry task force has been floated in order for this issue to gain national attention.

Geological surveys funding
In 2001 the PDAC was able to report some positive news about geological surveys funding in Canada, which had shown a substantial decline over previous years. Following extensive lobbying efforts by the Geoscience Committee and the findings of a government/industry task force headed by director Mary-Claire Ward, total annual budget across federal and provincial jurisdictions for 2000-01 showed a significant increase from earlier levels to $48.6 million or 72% of the amounts recommended. Lobbying efforts had focused on the need for stable, adequate funding levels for basic geoscience activities, such as bedrock and surficial mapping, geochemistry and geophysics.

Cooperative mapping strategy for Canada
In 1999, mines ministers directed the National Geological Surveys Committee to work with industry to propose a cooperative mapping strategy for Canada. The PDAC continues to call for the implementation of such a strategy and for secure, sustained funding for the program.

Links with other geoscience organizations
The PDAC is a member of the Canadian Geoscience Council and is represented by Mrs. Ward at its meetings. The association also has observer status at meetings of the Canadian Council of Professional Geoscientists.

Land use strategy
The Lands Committee, in cooperation with the Mining Association of Canada, is developing a strategy that will provide guidelines to its member companies on land access issues. The two primary elements of the strategy are to maximize the land available to mineral exploration and the sustainable development of mineral resources, while achieving environmental and conservation objectives. The draft guidelines have been presented to the board and to sister associations across the country for information and comment. A final strategy will be presented at an upcoming board meeting for approval.

Provincial/territorial land issues: Ontario’s Living Legacy
The PDAC becomes involved in provincial issues with national import. Currently the PDAC is involved to varying degrees with protected area issues in Yukon, NWT, and Ontario. In the case of the Ontario Lands for Life and latterly Living Legacy programs, the PDAC has played a significant role to the Ontario Prospectors Association’s (OPA) lead role on this issue. Initially, there was optimism for the industry’s interests following a land use public consultation process. However, a subsequent backroom deal excluded the mining industry. Since that time, things have deteriorated for the industry, despite attempts to salvage the situation. In 2001, for example, the PDAC, along with the OPA and the Ontario Mining Association, proposed to the Ontario government that the mining industry re-open discussions with it about the province’s Living Legacy program. The proposal was conditional upon the development of a new mineral policy for Ontario. No response. In March 2002, the mining industry reacted with strong disappointment to the Ontario government’s announcement that there would be no new exploration on untenured land within the areas in the province defined by the Living Legacy program. David Comba continues to work closely with members of the OPA on this matter.

Northern Canada
A special industry-government committee (IGOC) was established in 2001 to examine the regulatory regime of the North, including Yukon, the NWT, and Nunavut, and to recommend improvements. The committee, which reports directly to DIAND minister Bob Nault, was a result of intense lobbying by then president of the Yukon Chamber of Mines Gary Lee, backed by the PDAC. Earlier this year, at the instigation of the committee, Nault and ministers from all three jurisdictions met at the Northern Mines Ministers Conference. Discussions centred around the North’s investment climate and how it might be improved. Tony Andrews, Al Doherty, and Eira Thomas represent the PDAC on the committee.

Aboriginal-mineral industry partnerships
In its 2001 brief to the Mines Ministers Conference, the PDAC encouraged the formation of aboriginal-mining industry-government working groups, in each province and territory, to help develop constructive relationships, resolve problems and identify opportunities. This was a principal recommendation from a June 2001 workshop held to examine ways for improving relationships between the mineral industry and aboriginal organizations and for increasing aboriginal participation in minerals and metals activities.

Subsequently, the PDAC, in cooperation with MAC and the Canadian Aboriginal Minerals Association, developed a proposal for the creation of local action groups consisting of aboriginal, industry and government participants in a specified area. The mandate of these groups would be to build relationships among local participants, identify and prioritize needs, develop action plans to address needs and approach government agencies to fund the action plans. The board approved expenditures of up to $10,000 as the PDAC’s contribution towards funding the planning committee responsible for developing the project and the activities of a national coordinating committee responsible for carrying the project forward, prior to its receiving government funding. Tony Andrews is a member of the planning committee. It is anticipated that pilot groups will be established for this project by the end of 2002.

Mines Ministers Conference
The PDAC represents the exploration industry at the annual meeting of mines ministers. Over the last few years, the brief submitted has been developed in collaboration with sister associations across the country and with the Mining Association of Canada.

Mining Works for Canada
The objective of this program, which is directed by the MAC Public Affairs Committee, is “to facilitate the profitable growth and development of the mining industry through the use of strategic communications and government relations designed to enhance the industry’s reputation with key audiences.” The program’s current focus is to influence key decision makers in the federal government who have an impact on our industry, including ministers, caucus and parliamentary chairs, senior public officials, ministerial assistants and MPs in general. The PDAC, which contributes $50,000 annually to this program, is its largest outside contributor. Saley Lawton is a member of the MAC Communications Committee which oversees this program.

Exploration statistics
The PDAC annually surveys Canadian junior mining companies to determine their levels of exploration spending and financing. These data track the state of the industry and are used by the association in submissions to governments and in presentations to industry groups. The association now has a complete sequence of actual exploration expenditures, by geographic region and commodity target, from 1991 onwards. Detailed statistics on financing raised by the junior sector go back as far as 1995, and totals only are available from 1991 to 1994 inclusive.