Strategy will help Canada compete for investment and will support Canadian mining abroad
OTTAWA, Nov. 27, 2013 /CNW/ - The Mining Association of Canada (MAC) applauds the Government of Canada on its new trade strategy, the Global Markets Action Plan, announced by Minister Ed Fast this morning.
"The Canadian mining industry welcomes the new Global Markets Action Plan and we look forward to working with the Government of Canada to implement it, particularly the development of the Extractive Sector Strategy," said Pierre Gratton, MAC's President and CEO. "A comprehensive trade strategy that focuses on priority markets with significant opportunities for Canadian business is critical for Canada to compete against other countries for highly-coveted mining investment and will help give our companies an edge in accessing capital and mineral resources globally."
The Global Markets Action Plan includes several elements that will help strengthen Canadian mining abroad by:
- Reconfirming the Government of Canada's focus on completing trade agreements with priority markets, including Free Trade Agreements and Foreign Investment Promotion and Protection Agreements.
- Enhancing the Trade Commissioner Network's reach to further support Canadian business abroad.
- Establishing a new Extractive Sector Strategy that complements Canada's CSR strategy, Building the Canadian Advantage: A CSR Strategy for the Canadian International Extractive Sector.
- Creating an Advisory Board for Natural Resources to provide strategic insight, advice and real-world perspectives on how Canadian business can stay competitive globally.
From an export perspective, mining accounted for 20.4% ($92.6 billion) of Canada's total export value in 2012. From a finance perspective, of the $10.3 billion in mining equity raised on the TSX and TSX-V in 2012, $6.6 billion was for projects in Latin America, Africa, Asia and Australia. These investments generate significant economic activities both domestically and in recipient jurisdictions abroad. For example, the professional services supply side of Canada's mining industry (i.e. the financial, legal, accounting, engineering, environmental and other related components of international projects) represents considerable employment here in Canada. All told, the Canadian mining supply sector constitutes more than 3,200 companies, many of which support international mining projects in a myriad of ways from exploration to mine closure.
To help showcase the economic benefits that accrue from mining projects, the World Gold Council recently released a report, Responsible Gold Mining and Value Distribution, surveying almost 100 gold mines around the world, including several from Canada. The report found that out of $55.6 billion in total expenditures, at least $44.7 billion (or 80%) was paid out in the country where the operation was situated.
The economic and social benefits that Canadian mining companies provide to host countries are both vast and significant. "Internationally, natural resource companies create jobs and business development through local procurement in the communities where they operate, as well as support the building of infrastructure and the creation of training and skills development programs," stated Gratton. "Benefits also accrue via tax and royalty payments and private investments made by mining companies that go towards public health and education services and community programs."
The Mining Association of Canada is the national organization for the Canadian mining industry. Its members account for most of Canada's production of base and precious metals, uranium, diamonds, metallurgical coal, mined oil sands and industrial minerals and are actively engaged in mineral exploration, mining, smelting, refining and semi-fabrication. Please visit www.mining.ca.
SOURCE Mining Association of Canada (MAC)