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PDAC e-News and Activities, December 9, 2002, No. 8
Page Index
PDAC Convention 2003
Optimism at Newfoundland & Labrador show
e3 chairman addresses Manitoba convention
PDAC well represented at Mining Day on the Hill
Recent findings demonstrate value of “super” flow-through
Canada prepares for Kimberley diamond certification process
PDAC expresses concern about Ontario Mining Act amendments
16% metallic mineral rights tax in New Brunswick is onerous
Crisis Communications Workshop at 2003 convention
CIM symposium on Mining agreements: Deal makers and deal breakers
OECD Guidelines for
Multinational Enterprises
PDAC
Convention 2003
Just a reminder that the call for papers deadline is December 13. If
you would like to have your paper considered for the open session in
the technical program, please send an abstract (no more than 200
words) of your paper to Evelyn Liougas.
Click here for full call for papers.
A new feature at the convention will
be a Consultants Corner, a special exhibit area where independent
consultants can rent a counter display unit for a day to promote
their services. If you would like to participate (the cost is $250
per day), please click here for an application form or contact
Evelyn Liougas.
The 2003 convention program and
registration information has now been published and you should
receive a copy by mail some time in mid-December. In the meantime,
have a look at the technical
program which is now online.
Optimism
at Newfoundland & Labrador show
Issues director David Comba
represented the PDAC at the recent Newfoundland & Labrador Mines
& Energy Open House and CIM meeting. Dave presented a paper on
the “super” flow-through modifications that the association is
seeking and also manned the PDAC’s exhibit booth. The mood was
buoyant at the meeting and with good reason: the Voisey’s Bay
project, entailing a total investment of C$2.9 billion over the
30-year life of the mine, is underway, and there has been a marked
increase in staking activity in the province. The fall issue of
Minfo reports that “In the first nine months of 2002, 29,683
claims have been staked - in contrast to the 15,665 staked for the
whole of 2001.” Much of the staking activity and interest is in
gold, particularly in the Botwood Basin of north-central
Newfoundland.
e3 chairman
addresses Manitoba convention
Dave Orava, chairman of the e3
steering committee, provided an update on this important PDAC
initiative at Manitoba’s Mining & Minerals Convention which
was held in Winnipeg in mid-November. e3 (Environmental Excellence
in Exploration) is on schedule for its official launch at the PDAC
Convention 2003. Daily orientation sessions during the convention
will give delegates their first view of the e3 e-manual and an
opportunity to sit down at a computer and test the system. Watch for
more details.
David Comba was also a speaker at the
Manitoba convention. His paper addressed the PDAC’s proposed
modifications to the “super” flow-through program and the
association’s concerns about geoscience funding levels.
PDAC
well represented at Mining Day on the Hill
Mining Day on the Hill is an annual
organized event which enables mining representatives to discuss
issues of concern to the industry with MPs and senior government
officials in their Ottawa offices. Representatives of the PDAC were
out in full force at this year’s event which was held on November
19. Discussions were grouped into three main themes:
competitiveness, smart regulations, and northern issues. Exploration
matters raised included: the need to improve Canada’s securities
regulatory regime; “super” flow-through share program and
modifications to the Investment Tax Credit for Exploration; and
geoscience and northern issues. For further details, please contact
David Comba.
Recent
findings demonstrate value of “super” flow-through
In a letter dated November 12 to
Finance Minister John Manley, the PDAC points out some of the recent
findings published by the Metals Economics Group which demonstrate
the effectiveness of the “super” flow-through program. Of
particular note are the following: 1) Canada has regained first
place in exploration spending in 2002, surpassing Australia for the
first time since 1994; 2) Exploration allocations decreased the
least in Canada (5%) over the past year; 3) In Canada, an upturn in
the number of active companies reflects recently increased
investment in Canadian junior companies, which have been able to
raise more funds for their programs (mostly for gold, diamonds, and
platinum group metals) as investors return to traditional interests;
4) Canada’s flow-through share program for minerals exploration is
attributed to be a large factor in the improved investment climate;
and 5) Junior company exploration spending has increased an
estimated 3% this year following four consecutive years of declines.
Click here for a copy of the letter and press release.
Canada
prepares for Kimberley diamond certification process
The Kimberley Process Certification
Scheme for international trade in rough diamonds will come into
effect on January 1, 2003. As a result, all rough diamonds being
traded between Kimberley Process participant countries (including
Canada) must be accompanied by a Kimberley Process
certificate which
attests to the provenance of the diamonds.
On October 10, Canada’s federal
government introduced Bill C-14, an act providing for controls on
the export, import or transit across Canada for rough diamonds and
for a certification scheme for the export of rough diamonds in order
to meet Canada’s obligations under the Kimberley Process. The bill
has been passed by the Senate and is now awaiting royal assent. The
final regulations will likely be made public by December 31, 2002.
The PDAC has been actively involved
in the progress of the legislation and the development of the
regulations. Directors Robert Boyd, Eira Thomas, and Deborah McCombe
and issues director David Comba appeared before the House Standing
Committee on Foreign Affairs & International Trade to comment on
parts of the draft legislation which, if implemented, would have a
negative impact on Canadian junior diamond explorers. The PDAC
delegation also met with senior officials at Natural Resources
Canada, Foreign Affairs & International Trade, Indian Affairs
& Northern Development and Justice Canada to help draft the
regulations and with Senator Tommy Banks, chairman of the Senate
Committee on Energy, Environment and Natural Resources.
PDAC
expresses concern about Ontario Mining Act amendments
As a result of incidents involving
prospectors and surface rights holders in southeastern Ontario, an
ad hoc committee of Ontario’s Mining Act Advisory Committee has
proposed a series of amendments to the province’s Mining Act. In a
letter to the chairman of the Mining Act Advisory Committee, the
PDAC expresses its concerns about the proposed amendments that
threaten to erode the free entry system enshrined in mining
legislation throughout Canada and much of the rest of the world.
Click here for a copy of the PDAC’s letter.
16%
metallic mineral rights tax in New Brunswick is onerous
In our November e-newsletter, we
included a
letter that the PDAC had written to Newfoundland &
Labrador Premier Roger Grimes recommending the reduction of certain
royalty taxes as they apply to prospectors. In a similar letter to New Brunswick Premier Bernard Lord, the PDAC
points out that the 16% metallic mineral rights tax on all royalties
on mineral deposits in New Brunswick is burdensome, particularly for
individual royalty holders. The letter points out that, in effect,
the taxation of NSRs amounts to double taxation. President Bill
Mercer requests that the tax be reviewed and that consideration be
given to eliminating it. Click here for a copy of the
letter.
Crisis
Communications Workshop at 2003 convention
If your company has ever had to manage a major crisis or incident,
you know that organizational readiness, training and planning are
the best investments in crisis communications management. To help
sharpen your skills, the Mining Association of Canada (MAC) is
hosting a workshop on crisis communications management at the
Toronto Convention Centre on the evening of March 8 and all day on
Sunday March 9. Participants will receive, in advance, a copy of MAC’s
state-of-the-science Guidelines for Corporate Crisis Management
Planning and will benefit from a day and a half of intense
discussion and coaching in crisis communications management.
Participants will also have a say on what topics they want to focus
so that the workshop will be tailored to their needs. The workshop
will be run by skilled communications specialists in the mining
industry and will include crisis simulation exercises. The rate for
PDAC members is $450 (includes dinner, breakfast and lunch);
discounts are available for two or more participants per
organization. To register, contact Monique Lafleche at mlaflech@mining.ca (telephone 613 233 9392, ext. 316).
CIM symposium
on Mining agreements: Deal makers and deal breakers
The 13th Annual Symposium of the
Mineral Economics Society of the Canadian Institute of Mining,
Metallurgy and Petroleum will be held on Monday, January 20, 2003,
at the Ontario Club, Toronto. The symposium topic is "Mining
Agreements: Deal Makers and Deal Breakers." For registration
information, contact Jane Spooner, Micon International Limited, 390
Bay St., Suite 900, Toronto, ON, M5H 2Y2, Canada, telephone 416 362
5135, email MES2003@micon-international.com or click
http://www.cim.org/mes/pdf/2003_Brochure.pdf. Reduced
pre-registration fees apply until December 13, 2002.
OECD
Guidelines for Multinational Enterprises
The PDAC has been asked by the
federal government to draw our members’ attention to the
Guidelines for Multinational Enterprises, an instrument of the
Organization for Economic Cooperation and Development. The
guidelines, which were endorsed by Canada in 2000, contain
non-binding recommendations from 37 governments for responsible
business conduct in areas such as disclosure, environment, labour,
anti-corruption and bribery and human rights. The federal government
has a formal mechanism, the Canadian National Contact Point (NCP),
which is responsible for promoting the guidelines and assisting in
the resolution of issues that arise from specific instances of
business conduct. For more information, click here
or contact the NCP, email ncp.pcn@dfait-maeci.gc.ca, telephone 613
944 3303.
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