Resource Development: Challenges and Opportunities
2015 U.S. INTERNATIONAL VISITOR LEADERSHIP PROGRAM
Week 1 Report: Washington, D.C.
Left to right:
Mr. Justin Riemer, Government of Alberta; Ms. Regina Wright, Government of Canada; Ms. Erin Scraba, Government of British Columbia; Ms. Jennifer Koech, IVLP Liaison; Mr. Nadim Kara, Prospectors & Developers Association of Canada
For full week 1 report click here.
PDAC Senior Program Director Nadim Kara participates in State Department leadership program on resource development
From the Keystone pipeline to offshore oil and gas in the Gulf of Mexico, and from coal mining in Kentucky to fracking, the opportunities presented by resource development have perhaps never been greater. Seizing these opportunities will, however, require industry and government to meaningfully address the environmental concerns being raised by a range of stakeholders.
In January 2015, PDAC’s Senior Program Director, Nadim Kara, will join a delegation of Canadians to visit five locations in the United States and discuss how industry, environmental groups and government can work together to manage the environmental challenges faced by the oil, gas and mining industries. The delegation will learn about how Americans are addressing these issues, and share lessons learned from Canada’s experience as a resource nation.
The International Visitor Leadership Program is sponsored by the US State Department. More information is available here http://eca.state.gov/ivlp.
Nadim will be tweeting during the trip; you can follow him @nadimkaraPDAC.
PDAC Participates in 2014 Energy & Mines Ministers Conference
The PDAC participated in the annual Energy & Mines Ministers Conference (EMMC), held this year in Sudbury, ON from August 24th -26, co-chaired by federal Minister of Natural Resources Greg Rickford, Ontario Minister of Northern Development and Mines Michael Gravelle and Ontario Minister of Energy, Bob Chiarelli.
PDAC President Rod Thomas, along with PDAC staff, met with numerous provincial and territorial Ministers to discuss the state of the sector and PDAC recommendations to overcome challenges currently faced.
In addition to attending workshops and networking sessions, President Rod Thomas presented on the state of the junior exploration sector at a closed session of the Mines Ministers. This presentation represented the first time industry had been invited to present to the closed meeting of Ministers in several years, and was well received by those in attendance. PDAC will continue its outreach to provincial, territorial and federal members of government as part of its advocacy related to the 2015 federal budget.
Quebec Commits to Resource Revenue Transparency
On June 4th, 2014, the newly appointed Québec government tabled its 2014-2015 Budget. It was announced that the Québec government will participate in the federal government's initiative on mandatory reporting standards for extractive companies. The Ministère des Finances and the Ministère de l’Énergie et des Ressources naturelles will work with the Autorité des marchés financiers to implement this initiative to facilitate public access to information in the mining sector. In June of 2013, Prime Minister Stephen Harper announced that mining, oil and gas companies would publish annual reports of all payments of $100,000 or more that are made to the government. At the moment Canada is on track to pass the legislation by April 1, 2015, in which case it would be implemented by June 1, 2015. Québec marks the first province to publicly support the federal government.
The PDAC released recommendations on mandatory reporting of payments in January 2014 as part of the Resource Revenue Transparency Working Group
and continues to advocate for their implementation. To view the complete recommendations, please click here
PDAC Submission to Government's CSR Strategy Review
The PDAC is pleased to share its submission to the Department of Foreign Affairs, Trade and Development as part of the Government of Canada's review of its "Building the Canadian Advantage: A Corporate Social Responsibility Strategy for the International Extractive Sector."
to open the PDAC's submission.
CSR Roadmap Outreach Report
The PDAC is pleased to share its CSR Roadmap Outreach Report, summarizing the feedback received over a three month outreach process to inform the development of a new operational plan for our Corporate Social Responsibility program. The PDAC would like to thank all those who participated in the workshops, interviews, and web surveys held in the spring of 2013. The PDAC will continue to update its members and stakeholders as we move forward in building the CSR Roadmap.
to open the Outreach Report.
CSR Event Series 2014
For the fifth consecutive year, the PDAC will be organizing a Corporate Social Responsibility (CSR) Event Series at its International Convention. The CSR Event Series aims to facilitate multi-stakeholder dialogue and peer learning on key issues related to CSR in the mineral industry. The Series highlights practical cases of how companies are working to improve their social and environmental performance during mineral exploration, presenting both challenges and successes.
The CSR Event Series is free and open to all registered delegates.
for the CSR Event Series program at the PDAC 2014 Convention.
PDAC Research Paper Advocates For Long Term METC Extension
Mining is a strategic industry for Canada, and exploration, as its research and development phase, is its driving force. A number of financial challenges currently facing the industry are impacting the ability of the junior companies that conduct exploration to raise the capital their projects require. The PDAC has recommended to the federal government that the 15% Mineral Exploration Tax Credit should be renewed. We also believe the mining industry would benefit from longer-term stability, which can be achieved at this time by lengthening the METC approval period from its current one-year time frame to three years. METC has become the life-blood of the exploration industry. It has been in place for twelve years, and has become an integral part of the “Super” Flow-Through system for grassroots exploration which supports the junior mining industry. Read more in this in depth research paper.
February 8, 2013
PDAC Survey on Tax Treatment of Expenditures for Community Consultation, Environmental Studies and Feasibility Studies.
The Prospectors and Developers Association of Canada (PDAC) requests your help in completing this survey to ensure that funding from Flow-Through Shares and other tax incentives for mineral exploration in Canada continue to provide optimum benefits to the exploration industry. The results of this survey will be used by the PDAC, in its discussions with federal and provincial government officials, to clarify the tax treatment of such costs and ensure consistency of such categorization across Canada. To participate in this survey click the following link.
PDAC presents to federal Standing Committee
On February 5, 2013, the PDAC’s Senior Program Director, Nadim Kara, presented on Bill C-47, the Northern Jobs and Growth Act, in front of the federal Standing Committee on Aboriginal Affairs and Northern Development. During the presentation, jointly created with the NWT & Nunavut Chamber of Mines, the PDAC articulated its support for the NWT Surface Rights Board Act and proposed six amendments to the Nunavut Planning and Project Assessment Act. Download a copy of the Powerpoint here or read the transcripts of the presentation here.
2011 PDAC pre-budget submission to the Standing Committee on Finance
In August 2011, the PDAC offered its recommendations to the Standing Committee on Finance during its deliberations on the 2012 Federal Budget. Please click here to see the complete submission.
The PDAC recommends that the following measures be adopted to sustain the mineral industry in Canada and create jobs:
- Make the current Mineral Exploration Tax Credit (METC) - which has been renewed, often on an annual basis since 2000 - permanent, thereby providing greater certainty to the exploration industry and investors.
- Increase the knowledge of our natural resources as a key driver to exploration success through continued investment in the Geomapping for Energy and Minerals (GEM) initiative, and the Targeted Geoscience Initiative (TGI).
- Encourage good corporate social responsibility and environmental practices by undertaking a review, in consultation with industry, of the tax rules governing the extent to which community consultation and environmental compliance costs are eligible for the Canadian Exploration Expense (CEE) deduction.
2011 mineral industry recommendations to Canada’s Energy and Mines Ministers
Kananaskis, Alberta, July 2011
The PDAC, the Mining Association of Canada (MAC) and members of the Canadian Mineral Industry Federation (CMIF) were invited to provide federal, provincial and territorial mines ministers with views and recommendations regarding policy issues of importance to our industry. The CMIF members represent the majority of companies engaged in mineral exploration, mining, and processing – accounting for most of Canada’s production of base and precious metals, uranium, diamonds, metallurgical and thermal coal, potash and mined oil sands. [Summary]
PDAC Position Statement – Land Use Planning and Land Access
In spring 2010, the PDAC Lands and Regulations and Aboriginal Affairs committees participated in a workshop to develop a position statement on land access and land use planning.
Finalized in January 2011, the statement offers the PDAC’s views on Guiding Principles and Practices for Public Policy and Legislation that its members believe should guide the development of public policy and legislation regulating land use planning for Crown lands and governing access to those lands for mineral exploration and mine development purposes.
For a copy of the PDAC’s position on Land Use Planning and Land Access please follow the link:
The Mineral Industry and the 2011 Federal Election
The PDAC is encouraging members to contact their local candidates about the mineral industry and the Mineral Exploration Tax Credit (METC).
Recommended question to all candidates: Do you support the reinstatement of the Mineral Exploration Tax Credit (METC) in the next federal budget when a new Parliament is formed?
Please click here
for background information on the METC and facts about the mineral industry that you can use when speaking with your local candidates.
May 2, 2011 is the date for the next federal election.
Looking to contact your local candidates?
Please click here
More information about the election is located on the Elections Canada website
Important note on the Mineral Exploration Tax Credit:
On March 31, 2011, the Mineral Exploration Tax Credit (METC) expires.
Implications for investors and issuers: Flow-through share agreements signed after 31 March 2011 will not be legally entitled to renounce Canadian Exploration Expenses (CEE) that are eligible for the 15% federal METC. However, existing agreements are still entitled to renounce CEE eligible for the 15% METC provided that related expenses qualify as FTME (Flow-Through Mining Expenses) and are incurred:
(a) before December 31, 2011 if renounced in 2010 or before April 1, 2011 under the look-back rule; or
(b) before December 31, 2012 if renounced after March 31 2011.
For further information, please see the Natural Resources Canada METC page.
Party platforms and the mineral industry
Conservative Party of Canada: click here
Liberal Party of Canada: click here
New Democratic Party of Canada platform: click here
p. 9, commits to “extend eligibility for the mineral exploration tax [credit] for an additional three years beyond March 31, 2012. This will apply to flow-through share agreements entered into on or before March 31, 2015”
Bloc Quebecois platform: click here
Mineral industry submissions
- PDAC pre-budget submission to the Standing Committee on Finance (August 2010)
- Canadian Mineral Industry Federation submission to the Mines Ministers (August 2010) English French
- The Government of Canada’s intention to extend the Mineral Exploration Tax Credit, announced in today’s budget, is welcomed by the PDAC. News release (March 22, 2011)
The following is text from a PDAC letter that was personally addressed and sent to all MPs in March, 2011.
If you have any questions, please contact:
Philip Bousquet, Senior Program Director - email@example.com or 416-362-1969 Ext. 230
Lesley Williams, Program Assistant - firstname.lastname@example.org or 416-362-1969 Ext. 294
Over the years the advocacy role of the Prospectors and Developers Association of Canada has grown substantially. The association has been called upon to represent the industry on a wide range of issues of importance to its members and the mineral exploration sector, including access to land, mining and securities regulations, Aboriginal affairs, corporate social responsibility, finance and taxation, geosciences, environmental issues, and health and safety.
In July 2007, the PDAC board of directors approved a new five-year strategic plan containing four priority areas. These include land access and Aboriginal issues, particularly the settling of land claims and building industry-community relationships. That concern was reflected in the signing in March 2008 of a Memorandum of Understanding between the PDAC and the Assembly of First Nations.
A second priority is to meet the human resources challenge facing the industry, and particularly to attract students to exploration careers. An important initiative coming out of this is the annual two-week Student-Industry Mineral Exploration Workshop, which was launched in 2007.
The strategic plan also identifies the PDAC’s international role as a priority, especially meeting the needs of international delegates to the convention and offering services to international members.
The final priority is to expand the PDAC’s work in corporate social responsibility. At its 2009, the association launched e3 Plus: A Framework for Responsible Exploration to help exploration companies continuously improve their social and environmental performance