Thank you.
For the record, my name is Rick Meyers. I'm vice-president of technical and northern affairs for the Mining Association of Canada. Previously, between 1998 and 2007, I was director of mineral resources for Aboriginal Affairs and Northern Development Canada.
My presentation today is based on a joint submission by the Mining Association of Canada, the NWT & Nunavut Chamber of Mines, and the Prospectors and Developers Association of Canada that was presented to Aboriginal Affairs and Northern Development in October of 2013.
In the interest of time, I'll give a very brief overview of Canada's mining industry and the contributions mining has made in the Northwest Territories, and then provide some comments that we wish to put forward on Bill C-15.
I believe most of you are familiar with the Mining Association, so I won't go into much detail here. We have more than 80 members working across all aspects of the sector. Our members are committed to sustainable development, and our performance has been publicly reported under our “towards sustainable mining” initiative
Mining contributes in a major way to Canada's economy in terms of employment and business development, capital investment, and taxes and royalties, and is the largest private sector employer of aboriginal Canadians. As a global competitor, Canada is a world leader in mineral exploration, development, and production, especially as a contributor to Canada's goods exports, at 20% of the total.
The NWT's mining industry today consists of four producing mines—three diamond mines, two of which are world-class mines, Ekati and Diavik, and a tungsten mine, Cantung, which is the western world's largest producer of tungsten concentrate—and some 33 past producers, which long ago established the Northwest Territories as a mineral-rich and productive territory.
Mining is the largest private sector contributor to the Northwest Territories economy. It does that in terms of employment; investment and spending; business development; contributions to northern infrastructure, including more than $100 million in contributions to community development; and workforce development, specifically in extensive programming in aboriginal skills training and education.
The value of the Northwest Territories' mineral production since 1999 is attributed largely to diamond production, which places Canada third by value in global production. Despite their high productivity, even some of the diamond mines are approaching their maturity. New discoveries will be needed if the Northwest Territories is to maintain the current level of economic prosperity that the mining industry has provided over the last number of years.
In terms of taxes and royalties, since 2002 the mining industry has been one of the highest-paying sectors in the territory. To the end of 2013, corporate taxes and royalties have amounted to approximately $3.6 billion. By 2020 they're projected to be in the order of $5.6 billion. The industry also contributes other major payments not included here, such as payroll income taxes and fuel and property taxes.
I'm not sure if you have a copy of the deck I'm using here, but in terms of aboriginal business development, our deck contains a list of more than 50 aboriginal companies that provide goods and services to the Northwest Territories mines. Fifteen year ago less than a handful of aboriginal companies had the capacity to do such business, so this is an incredible story of success for northern mining working so successfully with aboriginal communities.
With respect to Bill C-15, the mining industry sees devolution as an important step forward for the Northwest Territories, and long-awaited. As an indication of its recognition of the importance of our sector, the Government of the Northwest Territories has partnered with the NWT & Nunavut Chamber of Mines to produce its new mineral development strategy.
This strategy is intended to focus on five key pillars to improve competitiveness and enhance northern opportunities: creating a competitive edge, with the NWT as an investment destination of choice; improving the Northwest Territories regulatory environment; enhancing aboriginal engagement and community capacity; promoting sustainability; and enriching workforce development and public awareness. These are all positive initiatives.
In terms of industry's participation and input, again I refer to my deck. There is a table that shows the involvement that industry has had in northern regulatory improvement over the years. I won't go into it in much detail, but the table indicates that we have been fully engaged from the beginning in several of the government's northern initiatives during the past decade.
They include, particularly, Minister Strahl's northern regulatory improvement initiative, Minister Duncan's action plan on improving regulations, and now the amendments to the Mackenzie Valley Resource Management Act under Minister Valcourt. We have been there pretty much every step of the way.
The MVRMA defines the regulatory framework for most mining projects in the Northwest Territories, and the key proposed amendments under consideration are the addition of timelines to bring the northern processes in line and create equivalency with the Canadian Environmental Assessment Act.
The authority for ministerial policy direction to boards, the consideration for the life of project water licences, and of course the restructuring of the land and water boards are all generally considered to be improvements, or at least potential improvements, to the act. However, there are other opportunities that we think are important that we'd like to put forward. I have five points I want to make.
The first relates to timelines. Our issue is with the requirement for the completion of an environmental assessment, which can take 12 to 24 months, prior to the commencement of an environmental impact review, which is another 24 months, and that is if there is no public hearing. The solution we propose is that if an EIR is required, we recommend consolidating both processes into a single 24-month process, with full consideration for any and all evidence presented in any earlier environmental assessment process.
The second one is unwarranted referrals, and this is in reference to what we believe to be unwarranted referrals to environmental assessment of low-impact activities such as grassroots exploration projects, small drilling projects, geophysical surveys, and the like, based on undefined public concern. Our recommendation here is to put some definition on “public concern” and its scope, and apply the definition appropriately.
The next point relates to proportionality. We advocate for the flexibility for a board to tailor the scope of an environmental assessment in proportion to the magnitude and expected impacts of a project, rather than a one-size-fits-all approach.
The fourth is in reference to the restructuring of the land and water boards. We recognize that this proposal presents concerns and we also understand that there are advantages and efficiencies with this approach. However, in recent years we've seen an increase in the maturity and professionalism in board management and the processes that they administer. Our members have established productive working relationships with the regional panels. I particularly want to point out the Wek’eezhii board here.
We want to emphasize the importance of those relationships, going forward. We also want to stress the importance of ensuring that community representatives continue to be involved with projects coming forward in their regions.
Finally, with respect to the duty to consult, we have seen much of the responsibility for consultation delegated to industry over the past number of years, so we therefore welcome the provision to create regulations to address this. But these regulations will probably take a few years, so in the interim we suggest that this is perhaps an area where the minister could apply his or her policy direction to the boards for the clarification of responsibilities when it comes to consultation.
Looking to the future across Canada, the Mining Association of Canada has estimated some $140 billion in proposed mineral development projects that are currently in environmental assessment and permitting processes. In the Northwest Territories, most of the projects coming forward are included in this estimate. In the north, mineral development is the primary and frequently the only opportunity for economic development for many, if not most, northern remote communities. Future development in the Northwest Territories will be dependent on its ability to attract investment. Therefore, the Northwest Territories investment climate will be a highly motivating factor.
In summary, successful development attracts new investment; however, this investment cannot be taken for granted. Capital is mobile and competition for it is global.
Investment decisions are made on fairness and predictability of process, so confidence in the regulatory process is paramount. An improved regulatory environment will help provide certainty for northern operators, and Bill C-15 has the potential to support this objective. We encourage you to consider the recommendations that we're putting forward here today.
Thank you very much for the opportunity.