Tough circumstances enhance relevance of annual general meeting

Mining executives and mine managers assembled from across the province at Horseshoe Valley from September 26-28, 2001, to participate in the Ontario Mining Association’s “Sustainable Mining in the 21st Century” conference. Though the tragedy of September 11 in New York and Washington was on everyone’s mind and people were worrying about how to cope with weak markets, low metals prices and rising costs, the spirits and enthusiasm of all involved were high. Everyone was keen on the task at hand, which was to share ideas on how to work with employees, communities and governments in strengthening the economic, environmental and safety performance of Ontario’s modern, high tech mining industry.

The objectives of the conference were many. They included the following:

to further the OMA mandate of improving the competitiveness of the mining industry in Ontario;

to give members an opportunity to learn about the government and current government thinking;

to help educate members about how the world is unfolding and what forces could have an impact on the mining business;

to enhance morale, team-building and a sense of a common purpose among members; to share information and gain a better appreciation of members’ concerns;

to develop some specific short-term action plans and longer-term targets for the Association;

and to help members gain a better understanding of the activities of OMA staff.

A plenary session with key speakers was held to launch the main part of the conference on September 27. This session was conducted by OMA Chairman Ron Aelick, who started the meeting with the words “Today is about our future.”

The first person to express a viewpoint on that future was Mining Association of Canada President Gordon Peeling. His topic was the MAC’s Towards Sustainable Mining Initiative. “The status quo is no longer acceptable and miners must be committed to earn their social licence to operate,” he said. He pointed out the need for changes in the industry’s performance and a willingness to communicate those changes to various audiences. TSM was described as an umbrella that broadly embraces everything we do as an industry.

Ken Ogilvie, Executive Director of Pollution Probe, addressed the topic of “The Environmental Big Picture and What It Means to You.” He congratulated the mining industry on the successful environmental initiatives it has undertaken and emphasized that the mission of Pollution Probe is not to attack corporations but to engage in research, education and advocacy for positive results.

“The rapid upward proliferation of international agreements, conventions and protocols is leading to the growth of globalization of environmental initiatives,” said Ogilvie. Over the past two decades there have been significant shifts in the emphasis of environmental actions.

In moving from environmental topics to energy, Floyd Laughren, Chair of the Ontario Energy Board, addressed the topic of “The Role of Regulation in Ontario’s New Electricity Marketplace.” The government has announced market opening will be in May 2002. He outlined the role of the OEB, which will be to regulate transmission and distribution, license market participants, review mergers and acquisitions, oversee retail market readiness, monitor market competitiveness and regulate natural gas.

He advised miners to not be just takers of electricity but to understand the market, to buy electricity carefully and to use energy wisely. “The key is in developing internal expertise, or hiring it,” he said. In concluding, he thanked the OMA membership, which has provided valuable assistance in the electricity market restructuring process, and he praised the industry’s achievements in energy efficiency and environmental protection.

Rounding out the plenary session was John Gammon, Assistant Deputy Minister of Northern Development & Mines, who offered the “Government Perspective on Mining.” He made his remarks on behalf of the Minister of Northern Development & Mines, Dan Newman. “This government as a whole understands the importance of a healthy and sustainable mining industry to jobs and prosperity in Ontario. It is committed to creating a favourable business climate that will sustain and support a vibrant minerals industry in our province,” he said. “All of us in government – both politicians and bureaucrats – know that Ontario needs strong, forward-looking mining companies to secure our future prosperity.

“There’s no question that this government means what it says when it tells you it is committed to the creation of a healthy, vibrant and sustainable minerals sector,” he added. “That commitment goes far beyond comforting words and mere expressions of support.” Gammon then outlined numerous government initiatives including the reduction in the Ontario Mining Tax, the 10-year Ontario Mining Tax exemption for remote mines, a lower manufacturing and processing tax, a new flow-through share incentive plan, the funding of Operation Treasure Hunt, and the investing in an Abandoned Mines Rehabilitation Program.

Following the plenary session, there were a number of interactive nuts-and-bolts sessions dealing with safety performance, environmental initiatives and energy efficiency. The proceedings of the conference, which did indeed deal with multiple issues vital to the future of the mining industry in Ontario, provided a great deal of food for thought and action.