Letter to the editor

An after thought to my article entitled: “Regulatory permitting: Exploration to mine development,” published on page 6 of the October issue of the Canadian Mining Journal.

A permit must be considered as an asset that has an intrinsic value because of its acquiring costs and must be entered as a line item in any financial statement. The permit should be compared to a patent, license, or mining claim, which includes renewal costs. Permits add value to any company’s financial position, as it also adds to shareholder’s value and could be used as an asset in any bankruptcy, mergers and acquisitions, and possible trades.

For example, if an Indigenous community holds a permit (i.e., exploration permit, surface rights, etc), which was obtained through their own initiative, this will add immense value for an investor. The Indigenous communities need to understand that permits have an intrinsic value for investors, as without permits, there will be no investments. This example would make mining investment more appealing to the investor, timely and cost efficient, and reduce the problem(s) of permitting time frames as per my article. It is now becoming apparent that there are some Indigenous owned exploration groups which could hold such permits.

Bruce Downing, M.Sc., P. Geo., FGC, FEC (hon.) is an independent mining expert.