Paul Stothart is vice president, economic affairs of the Mining Association of Canada. He is responsible for advancing the industry’s interests regarding federal tax, trade, investment, transport and energy issues.

During the past five years of strong growth in mineral prices, the mineral exploration community in Canada has been facing an increasingly difficult challenge — namely, how to find resources in promising northern regions where underlying mineral data is either weak or non-existent.

The federal government has been under-investing in its geological mapping responsibilities for some 20 years, with annual spending declining from $98 million in 1988 to $50 million in 2007. This decline has been equally dramatic at the provincial and territorial government levels. One interesting consequence of this neglect is that some 73 per cent of Nunavut, for example, is unmapped or poorly mapped and, at present investment levels, the first full mapping of the territory would not be finished for 80 years.

Given such a weak foundation of data, private companies are less able to undertake effective exploration programs. While exploring for minerals is, to some extent, akin to “searching for a needle in a haystack,” it is the public policy investment in basic geological survey work that allows those accessing the data to at least find where the haystacks are. In view of the high level of interest in diamonds, uranium, base metals and other northern resources, one must question the public good served by this pattern.

Questions of national sovereignty in the North are also raised by this under-investment.

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Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

Let’s start with the really good news. Agnico-Eagle Mines of Toronto has declared its 27th consecutive annual cash dividend. The payment of US$0.18 per common share will be made on March 27, 2009, to shareholders of record as of March 13, 2009. 

Hearing from an optimistic miner in these times is very good news, indeed.

“Agnico-Eagle enters 2009 with a strengthened balance sheet and the expectation that over the next 15 months we will complete the construction of three more gold mines. We also anticipate further increases in gold reserves and resources in 2009 as we continue with an extensive exploration program on our large gold deposits”, said Sean Boyd, vice-chairman and CEO. “We also look forward to providing the results of our ongoing studies on four internal production growth opportunities that give the potential to enhance our superior growth beyond 2010,” he added.

Agnico is in the enviable position of doubling its gold output next year and doubling it again to 1.2 million oz in 2010. Cash costs are expected to be less than US$300/oz in 2010, and only US$320/oz from 2010 to 2018. 

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This article was first published in Northern Ontario Business, a newspaper that has been providing northerners with relevant and insightful editorial content, business news and information for over 25 years.

Students around the world may soon be viewing and discussing Ground Rules, an educational film detailing the positive side of mining, crafted by Science North and commissioned by equipment giant Caterpillar.

Dan Hellige, manager of safety and sustainable development with Caterpillar’s global mining group, says the movie was necessary so as to highlight the more positive elements of the sector. “I have a niece, who in the Fifth Grade, read
Al Gore’s book, An Inconvenient Truth, in the classroom so they’re really only getting the one side of the story a lot of the time about what’s going on with industry and business,” says Hellige.

“We felt like it was a good time to tell the other side of the story, especially for the mining industry’s efforts and what they put in.”

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