Thank you.
Thank you for the opportunity to appear before the committee and to participate in this pre-budget consultation.
I'm the executive director for Mining Industry NL. Our association represents 60 members actively engaged in mineral exploration, mine development, mine operations, and the provision of supply and professional services in this provincial mineral industry.
Our industry is a significant economic driver in this province and generates in excess of $3 billion annually in mineral shipments to markets around the world. It directly employs over 7,000 people. We account for 50% of Canada's iron ore and approximately 20% of the country's nickel. Overall, Newfoundland and Labrador ranks fifth in the country in terms of our mineral production, and we produce a variety of minerals here. Copper, cobalt, and gold are particularly relevant in our sector, and we have a promising future, we believe, in base metals and industrial minerals. In fact, in this province we have a 150-year history in mining, with a diverse geology and under-explored mineral endowment. We are confident that our industry has a great future and will make a positive contribution for many years to come.
Canada, of course, is a world leader in mining. Newfoundland and Labrador is also well known for world-class mineral deposits, from Buchans in the interior of the island to the iron ore deposits in the Labrador Trough to nickel, copper, and cobalt up in Voisey's Bay.
Newfoundland and Labrador generates billions of dollars in mining-related economic activity. In order for our industry to remain competitive, measures are needed throughout the mining cycle, from geoscience and exploration and beyond to mine operations.
The mining cycle starts with geoscience, and prospecting and early-stage exploration activity are key to our future. Mining Industry NL recommends that both orders of government maintain a strong public commitment to the advancement of geoscience in the province. Companies, after all, access and use this information to guide their exploration activities. Our association would therefore encourage the Government of Canada to continue and to enhance its commitment to the geo-mapping for energy and minerals program, the GEM program. Recent GEM program work has advanced geological understanding of the mineral potential of Labrador. This work has included detailed geophysical surveys, regional mapping, till geochemistry, and regional bedrock mapping in western Labrador.
Raising capital is very important to our industry. Mineral exploration throughout the country has experienced a strong downturn over the past several years. It's been a tough period for junior companies to raise money and undertake the work necessary to find that next mine. I'm happy to report, though, that there has been a bit of a clear reversal of this trend over the past year, at least in Newfoundland and Labrador. With over 33,000 new claims staked since August of 2016, committed exploration expenditures are expected to rise from roughly $20 million to a forecast of around $30 million. That's the direction we're happy to see at this particular point in time. This is a long way off, of course, from our 2012 peak of $192 million; however, our association is encouraged to see this resurgence in activity, particularly in gold and base metals exploration.
To continue this momentum, Mining Industry NL, along with our association colleagues throughout the country, including MAC, the PDAC, and others, would recommend that the mineral exploration tax credit be renewed for a period of three years and that flow-through shares be maintained to ensure continued interest and investment in the sector. By providing Canadians with a strong incentive to continue to invest in mineral exploration activities, we can support the advancement of new discoveries through to mining projects.
In terms of our Atlantic presence, Mining Industry NL is pleased to participate in the Atlantic trade and investment growth strategy. Collectively, industry and government in the four Atlantic provinces are working together to advance a mining sector investment and export development plan. The strong commitment to this and other initiatives through the Atlantic Canada Opportunities Agency and other federal departments serves to ensure that strategic investments for growth are made throughout the mining sector. Industry-wide activities that attract foreign direct investment into the province and bring Newfoundland and Labrador's mining story to markets in Asia, Europe, and the United States are needed.
Initiatives to address productivity and competitiveness through support for innovation, the introduction of new technologies and processes at our mine sites, and the advancement of clean tech and green mining are critical to our industry's future. Mining Industry NL recommends that the Canada Mining Innovation Council be supported to develop the Towards Zero Waste Mining innovation strategy. This, of course, aligns with the government's innovation, climate change, and clean tech agenda. As a small association, we are pleased and interested to collaborate with our national partners to see our firms achieve zero waste in mining and mineral processing in the coming decades.
Without people, we don't have a mine. Of course, investing in people and communities is essential for our industry. MINL strongly supports the full participation of indigenous peoples in mining through education and training supports, business development partnerships, and employment. Efforts are also being advanced in this province to assess the feasibility of a mining centre of excellence that would help engage and support a coordinated approach to education and training, and to research and development activities within our local industry.
Finally, on the regulatory front, the regulatory environment impacts investment decisions and influences where companies choose to explore and advance their interests. The review of federal environmental legislation, including the Canadian Environmental Assessment Act, must find that balance between the public interest and industry's need for an effective, timely, and coordinated regulatory process. We need to ensure that projects advance with greater certainty and that government has the internal capacity necessary to meet these responsibilities and help avoid delays. An improved compliance framework can reduce project costs and increase our industry's competitiveness in comparison with other jurisdictions around the world.
With that, I close my comments. Thank you for the opportunity to share my views with you this morning.