Thank you very much.
In addition to our brief, we've provided a PowerPoint presentation that illustrates a bit more what's happening in the mining industry globally, and Canada's role within that global industry. I would encourage you to take a look at that at your leisure. It also highlights the potential in Nunavut in the coming years, a potential that both of my colleagues have already referred to.
I'm CEO of the Mining Association of Canada. I'm joined by my colleague Rick Meyers, who's been with us for several years. Prior to that he spent several years with the Department of Aboriginal Affairs and Northern Development as director of northern affairs. He's spent a very good part of his life helping Canada develop the diamond mining industry in the Northwest Territories.
MAC represents the producing side of the business. In that sense we're different from the PDAC. We have some 35 or 36 members engaged in exploration, mining, smelting, and refining across the country, across a range of commodities.
In 2011, the year for which we have the most recent statistics, the mining industry contributed some $35.6 billion to the GDP and employed some 320,000 workers, paying some $9 billion in taxes and royalties to provincial and federal governments. The sector also accounted for almost 23% of exports, exporting a record $102 billion worth of metals, non-metals, and coal.
I highlight the word “record”. We've been breaking records lately, and again, that speaks to what's happening in the commodities market globally. Canadian mineral production reached a record high in 2011 of $50.3 billion, a 21% increase over the previous year. We also broke new records in mineral exploration, a lot of which is going into the northern territories.
According to our research, we've estimated that there's as much as $140 billion in new investment that could come forward in the next five to 10 years across Canada, $8 billion of which is targeted for Nunavut. A good chunk of that $140 billion is already actually being spent. That number focuses on projects that are either in development or in later stages of environmental review. We are certainly hopeful that this new legislation will help increase these opportunities and turn these opportunities into reality.
To ensure that the mining industry's contribution to our economy remains robust, a competitive and predictable domestic investment and regulatory environment is crucial. To this end, we encourage this committee and the government to continue to support Canada's investment climate through regulatory improvement, as demonstrated by this legislation.
We welcome the tabling of Bill C-47. We are particularly optimistic about the inclusion of the Nunavut Planning and Project Assessment Act, which resulted--and I want to emphasize this--from a broad and thoughtful approach to stakeholder engagement, a level of engagement that in my experience on northern legislation was unprecedented with our industry. We've been involved since the bill's early stages of development and participated in several rounds of a multi-stakeholder process to provide industry input into the legislation. Overall, we are pleased with the advancements the legislation presents; however, we do believe there are some opportunities for improvement.
We have four suggested improvements, but they're also contained in my colleagues submissions from the PDAC. I'll try to run over these fairly briefly, in the interests of time.
The first is with respect to timelines. I would note that the timeline for comprehensive studies is to a maximum of two years; south of 60, the timeline for comprehensive studies is a year or less. There is a difference there. We recognize the land claims process in the north imposes obligations that may make it harder to achieve the more ambitious goals of the south; nevertheless, we flag for you that there is a pretty big difference between the two.
On classes of works and activities exempt from screening, jurisdictions typically do not require screening and/or environmental assessment of certain classes of low-impact activities. Schedule 3 of this bill is intended to confirm such classes of projects not required to undergo screening or environmental assessment in Nunavut; however, the schedule has not yet been completed, creating uncertainty as to the details of these classes. In that regard, we recommend that schedule 3 be completed in advance of the bill coming into force.
My colleague has also touched on the issue of minor variances. I would emphasize as well that we suggest that the Nunavut Planning Commission be provided with the authority to grant minor variances at its own discretion without a full public review process, but with the requirement to publish the commission's reasons for the decision on the public registry.
My colleague from the PDAC also mentioned offences under land use plans. Creating quasi-criminal offences for certain non-compliance activities under land use plans is unusual and unnecessary. In B.C., land use planning does not include criminal offences. For the most part across Canada, I'm not aware of examples of where that exists. We as well believe that the offences aspect should be removed from the bill.
The tabling of Bill C-47 is timely, given the announcement that Canada will be leading the Arctic Council for the next two years. Through its position as chair of the multinational council, Canada can help demonstrate the positive economic contributions that natural resource projects can bring to the circumpolar region and the importance of having effective legislation in place that allows for responsible development to take place for the benefit of northern peoples.
This legislation, I would emphasize, comes at a critical time for Nunavut, with its promising mineral potential and with opportunities for economic development never before seen in the territory's history.
The ideal outcome for this bill would be to have a new regulatory regime that helps enhance the region's economic development while ensuring mining projects go through a robust assessment and permitting process. We believe this is possible, particularly with the proposed changes we've recommended.
For the foreseeable future, mining will be Nunavut's most important private sector economic activity. Mine developments bring critical economic and social benefits: employment, business and skills development, and revenues and contributions towards enhancing the education and social development programs that contribute in many ways to improving the quality of life for Nunavummiut. Such advancements bring stability, enhanced capacity, and confidence in the territory's abilities to sustain its people's future.
The positive economic contributions that mining projects bring to the north are clearly demonstrated by the startup of the Meadowbank gold mine, which is currently Nunavut's only operating mine. Since it began production in 2010, Nunavut's GDP has increased by 12%. The mine employs more than 500 people, 38% of whom are Inuit. Moreover, through a historic agreement with the Kivalliq Inuit Association, the operator, Agnico-Eagle, has established new business opportunities and provided funding for education and skills development for people of the north. The approach taken by Agnico-Eagle in Nunavut is the way our industry operates today, and is what the people of Nunavut can expect from other projects in the future.
Nunavut is the least explored region in Canada, but is blessed with a very high mineral potential. There are six major projects moving through Nunavut's environmental assessment, including another one by Agnico-Eagle. With several more on the horizon, as was mentioned by my colleague from the Nunavut Planning Commission, it's estimated that before the end of the decade, development could double in the territory.
It will also help to ensure the Inuit of Nunavut will be able to take advantage of new employment, training, and business opportunities before them. The people are its future, and the advancement of their economic and social advantages will determine Nunavut's ability to compete on the would stage. The completion of NUPPAA as an enabling legislation is an essential element for the achievement of that goal. We strongly urge the committee to move forward with this legislation expeditiously.
Thank you very much.