News - 2014 Archive | The Mining Association of Nova Scotia

News - 2014 Archive

November 12, 2014
MINING INDUSTRY BETWEEN A ROCK AND A HARD PLACE
Survey: Economy, policy obstacles holding back job creation

Nova Scotia’s mining and quarrying industry is ending the year feeling less optimistic than it felt at the beginning, according to a recent survey.

"Our industry is caught between a tough economy and government policies that are making it harder to grow and create jobs,” said Sean Kirby, Executive Director of the Mining Association of Nova Scotia. "Many companies are feeling less optimistic now than they did at the beginning of the year. Our industry has lost 800 jobs in recent years, and we need the provincial government to do more to help us create jobs for Nova Scotians.”

A survey recently conducted by MANS shows that many industry players expect more layoffs than hiring to take place in coming months. 27% of survey respondents anticipate decreasing their number of employees in the next six months, compared to only 10% who anticipated layoffs in January 2014. Only 15.5% expect to increase employees, compared to 27.5% who anticipated new hires back in January. 42% of companies anticipate their number of employees will remain the same.

Respondents said the general state of the economy is the biggest obstacle their business faces with government regulation being a close second. Producers, who employ the largest number of people in the industry, said government regulation is their biggest challenge.

The industry’s policy concerns include a 75% hike in claim staking fees in 2013; an unnecessarily difficult regulatory regime for prospecting and exploration; and the high cost of operating in Nova Scotia.

A government-commissioned report released in 2013 found that Nova Scotia’s mining and quarrying industry lost 800 jobs in the past half dozen years. Other recent studies have shown that Nova Scotia is the highest cost jurisdiction in Canada in terms of tax and mining royalty payments to the provincial government, and global mining executives see Nova Scotia as the least attractive province in which to invest.

The industry survey was conducted October 28 to November 7. The 45 respondents included the full range of industry players: producers, prospectors/explorers and service/supply companies.

Nova Scotia's mining and quarrying industry is a key creator of jobs and prosperity for Nova Scotians. It provides 5,500 jobs, mostly in rural areas, and contributes $420 million dollars to the province's economy each year. The Ivany Commission said traditional industries like mining and quarrying "will provide the essential foundations for Nova Scotia's rural economy."

November 10-14 is Nova Scotia Mining Week.

November 10, 2014
NOVA SCOTIA MINING WEEK: “MINING ROCKS!”
Over $9000 in cash prizes in video contest

As Nova Scotia Mining Week kicks off, the Mining Association of Nova Scotia is encouraging students to enter the “Mining ROCKS! Video Contest” in order to win big.

The contest, which is open to all junior high and high school students in Nova Scotia, encourages kids to produce short videos about mining and quarrying. The winners in four different categories will be awarded $1500, with $500 going to their school.

“The contest is a great way to educate students about mining and how important it is to our province,” said Natural Resources Minister Zach Churchill, one of the judges for the contest. “I am very pleased to be working with MANS on this educational initiative.”

“The videos can be about virtually any aspect of mining and quarrying, including its economic importance, environment and reclamation, historical facts and beneficial end-uses of mining products,” said Gavin Isenor, MANS’ President. “And we encourage students to have fun with it – to be creative and make their video stand out from the crowd.”

Students will upload their video to www.NotYourGrandfathersMining.ca/contest and a panel of judges will pick the winners for the Best Junior High School Video, Best High School Video and Best 30-Second Commercial. The fourth category, the CIM Foundation People’s Choice winner, will be decided by the public through an online vote.

The judging panel includes Minister Churchill, Membertou Chief Terry Paul, Mayor of Cape Breton Regional Municipality Cecil Clarke, and a range of film and media experts.

The contest will award over $9000 in prizes in its first year. All prize money given to schools comes with no strings attached and can be spent on each school’s priorities.

The deadline for video entries is February 20, 2015.

Nova Scotia Mining Week takes place each fall in conjunction with Geology Matters, the province's biggest annual mining conference which is organized by the Department of Natural Resources.

September 14, 2014
MANS LAUNCHES “MINING ROCKS! VIDEO CONTEST
OVER $9000 IN CASH PRIZES

As students settle into the new school year, the Mining Association of Nova Scotia (MANS) is hoping to inspire junior high and high schools to get creative – and win big.

Today, MANS announced the launch of the “Mining ROCKS! Video Contest”. The contest, which is open to all junior high and high school students in Nova Scotia, encourages kids to produce short videos about mining and quarrying. The winners in four different categories will be awarded $1500, with $500 going to their school.

“The videos can be about virtually any aspect of mining and quarrying, including its economic importance, environment and reclamation, historical facts and beneficial end-uses of mining products,” said Sean Kirby, Executive Director. “And we encourage students to have fun with it – to be creative and make their video stand out from the crowd.”

“I am very pleased to be a judge for the video contest and to work in partnership with the mining association on educating students about the industry,” said Membertou Chief Terry Paul. “We all want to create more opportunities and a brighter future for our children, and the video contest is a good way to teach them about mining.”

Students will upload their video to the MANS website and a panel of judges, who are mainly independent of the industry, will pick the winners for the Best Junior High School Video, Best High School Video and Best 30-Second Commercial. The fourth category, the CIM Foundation People’s Choice winner, will be decided by the public through an online vote.

The judging panel includes:

Zach Churchill, Minister of Natural Resources
Membertou Chief Terry Paul
Cecil Clarke, Mayor of Cape Breton Regional Municipality
Anne Loi, Senior Vice President, DHX Media
Stephen Cooke, Chronicle Herald arts reporter
Jeff Parker, Viewfinders Manager, Atlantic Film Festival
Michael Amo, Screenwriter and creator of CTV’s “The Listener”
Stephen Melanson, Instructor, Radio and Television Arts Department, NSCC
Iain MacLeod, Marking Consultant
Pat Mills, Mining Association Past President

The contest will award over $9000 in prizes in its first year. All prize money given to schools comes with no strings attached and can be spent on each school’s priorities.

The deadline for video entries is February 20, 2015.

To watch the movie trailer for the Mining ROCKS! Video Contest, go to http://notyourgrandfathersmining.ca/contest-trailer

For more information, go to http://notyourgrandfathersmining.ca/contest

July 1, 2014
MANS CLARIFIES EXPROPRIATION ISSUE
"Expropriations are very rare in our industry"

Expropriations for mines and quarries are very rare and only used as a last resort, says the Mining Association of Nova Scotia.

"Expropriations are very rare in our industry," said Sean Kirby, Executive Director of MANS. "We are aware of only three expropriations for mines since 1990 and the Black Point quarry is the only one we are aware of for a quarry project. It is always the industry's preference to negotiate private, mutually-beneficial arrangements with landowners. Offers for land are often well above market value."

"The legal authority to expropriate must be maintained for those exceptional cases where there is no other way for a company to purchase all the land necessary to establish a new mine or quarry and create the associated jobs and other benefits for Nova Scotians," said Kirby. "It is simply a question of the greater good."

Recent media coverage highlighted the expropriation of land for the Black Point Quarry. The quarry is expected to create over 150 direct and indirect jobs during the construction phase, and over 120 direct and indirect full-time jobs (60-100 full-time direct) during the peak operation phase. The project is expected to have a lifespan of approximately 50 years. It is located in Guysborough County, an area that has struggled with depopulation and significant economic challenges in recent years.

It became necessary for the Municipality of the District of Guysborough (MODG) to expropriate a 45 hectare parcel of land in order to proceed with the development of the quarry on the 300 hectare parcel owned by MODG. A recent article about the expropriation contained significant errors, according to a document released by MODG on June 28, including:

The picture of the beach printed with the article appears to be a cove located west of the proposed quarry;
The expropriated land does not appear to have been occupied for over 100 years; and
Public consultation around the quarry and land use planning started in 2007.

The only recent example of an expropriation for a mine is DDV's proposed Touquoy gold mine in Moose River. It will create up to 300 jobs during the construction phase, 150 ongoing direct jobs during operations and have an annual payroll of over $13 million. The mine will generate millions of dollars in tax and royalty revenues for the province.

While DDV was able to negotiate successfully with 29 other landowners in the area to purchase land from them, one landowner unfortunately refused to sell a small portion of his property to DDV to facilitate the establishment of the mine. The landowner in this case was offered $300,000 for 7.2 acres of land, a tiny portion of the several hundred acres he owns in the area, and a price that far exceeds market value. It became necessary for DDV to seek an expropriation so all these jobs can be created and the government - all Nova Scotians - can benefit from the taxes and royalties that the mine will generate.

June 18, 2014
MINING SURVEY HIGHLIGHTS CAUTIOUS OPTIMISM
Industry creating jobs for young Nova Scotians

Nova Scotia’s mining and quarrying companies are feeling cautiously optimistic about job creation, according to a recent survey.

"We continue to face significant challenges, including a tough economy and government policies that are not helping the industry create jobs,” said Sean Kirby, Executive Director of the Mining Association of Nova Scotia. "However, most of our members expect to either create new jobs in coming months or to at least maintain the number of employees they currently have. After losing 800 jobs in the past half dozen years, this return to cautious optimism is good to see.”

A survey recently conducted by MANS shows 26% of industry players anticipate hiring more employees in the next six months and 44% anticipate their number of employees will be the same. Only 20% expect to decrease employees in the next half year.

Respondents also said the general state of the economy is the biggest obstacle their business faces with government regulation being a close second. The industry’s policy concerns include a 75% hike in claim staking fees in 2013; an unnecessarily difficult regulatory regime for prospecting and exploration; and Nova Scotia being the highest cost jurisdiction in Canada in terms of tax and royalty payments to the provincial government.

To highlight the industry’s potential to create jobs for young Nova Scotians in particular, MANS is launching a new web page called “Rock: My World” at www.NotYourGrandfathersMining.ca/rock-my-world. It features a dozen young adults who hold a range of positions in the industry, from geologists to mine engineers to environmental science experts.

One of them is Morgan Silver, an Underground Mine Geologist who was hired in 2013 to work at the recently re-opened Dufferin gold mine in Port Dufferin. The mine, which is owned by Ressources Appalaches, is creating 70 new jobs and over 90% of the new hires are Nova Scotians.

“I am proud to say that I followed my passion and it has led me to a meaningful career as a geologist working in Nova Scotia, helping bring economic development to the Eastern Shore and the area that I call home,” said Silver.
The industry survey was conducted June 3-12. The 50 respondents included the full range of industry players: producers, prospectors/explorers and service/supply companies.

May 16, 2014
MINING AND QUARRYING TO GET FUEL TAX REBATE IN 2015-16
Whalen: "The removal of the fuel tax will allow the sector to be more competitive"

The provincial government is committing to extend the fuel tax rebate to the mining and quarrying industry to help create jobs for Nova Scotians.

A May 13 letter from Finance Minister Whalen to the Mining Association of Nova Scotia states: "We intend to fulfill our election commitment over the final three years of our mandate ... the removal of the fuel tax will allow the sector to be more competitive and to reinvest in its strengths. It also adds fairness and simplicity to the tax structure as it applies to the resource sector - an important objective for our government and the foundation of the Tax and Regulatory Review."

The letter also states that the government has accepted a proposal from the Mining Association of Nova Scotia to phase in the rebate over three years "to balance the fiscal challenges of Nova Scotia with the removal of the fuel tax."

"We are very pleased that the government is making this commitment to support our industry and help us create jobs, particularly in rural areas," said Sean Kirby, Executive Director of the Mining Association of Nova Scotia. "Including us in the rebate will allow the industry to reinvest $2.6 million per year into making our operations more efficient. This is an important first step after the Ivany report to help our industry create more jobs for Nova Scotians."

The provincial fuel tax is supposed to help pay for public roads and highways by charging the vehicle owners who use them. The government gives other natural resource industries a tax rebate for fuel used in vehicles that do not go on public roads, such as fishing boats, farm tractors and forestry harvesters. Nova Scotia gives the rebate to fishing, farming and forestry, but does not currently give it to mining and quarrying.

The rebate will apply to a range of vehicles that operate on mine and quarry sites, such as haul trucks and excavators, which never leave the sites and are not allowed to drive on public roads.

May 9, 2014
MANS MARKS WESTRAY ANNIVERSARY
Mining injury rates reduced 90%

The Mining Association of Nova Scotia is marking the anniversary of the Westray mine disaster by highlighting how the industry has changed in recent decades.

“As an industry, we believe the most important thing to come out of a mine is the miner, and our safety record reflects this,” said Gavin Isenor, President of MANS. “Injury rates in the mining and quarrying industry have been reduced 90% in the last decade and a half, and are lower than other comparable industries. We are committed to continuous improvement in mine and quarry safety – to making sure a tragedy like Westray never happens again.”

“Modern mining uses technology and knowledge to extract materials safely and ensure that our colleagues get home to their families each night,” said MANS’ Executive Director Sean Kirby. “We continue to make significant progress toward our goal of having zero injuries. We reduced our injury rate 8.8% from 2012 to 2013, according to Workers Compensation Board statistics.”

The Westray mine in Plymouth, Nova Scotia, exploded at 5:20 a.m. on May 9, 1992, taking the lives of 26 miners. A public inquiry into the disaster, conducted Justice K. Peter Richard, led to significant changes in the way the industry is regulated and was a milestone in the establishment of a safety culture that has become a hallmark of the industry today.

Justice Richard’s 1997 report also commented that “The industry is very close-knit with an interdependence, camaraderie, and fellowship that may be unique in modern-day business. And people in the industry, at all levels, regard what occurred at Westray as a personal matter affecting them as if it had happened in their own backyard. It is for them a family tragedy.”

April 11. 2014
SURVEY: FEE HIKE CHOKING OFF FUTURE MINES
79% of prospectors plan to drop claims

Government increases in mineral exploration fees are forcing prospectors to give up their claims and walk away from potential future mines, according to an industry survey.

"Prospecting and exploration are vital to finding new mines and creating jobs in the mining industry," said Sean Kirby, Executive Director of the Mining Association of Nova Scotia (MANS). "Eight months after these huge fee increases were implemented, many prospectors are giving up their claims because they simply cannot afford to keep them. The Ivany Commission said mining is an essential part of Nova Scotia’s economic future but the government is choking off the future of our industry with these fees."

“The harm being caused to the industry by the fee increase is completely disproportional to the small amount of revenue being generated for the government,” said John Wightman, Executive Director of the Nova Scotia Prospectors Association (NSPA). “The fee increase is particularly short-sighted given the millions of dollars in taxes and royalties that a single mine can generate. In other words, the government can afford to give up the fee hike money. Prospectors cannot.”

According to a recent survey of MANS and NSPA members, 79% of prospectors and explorationists expect to drop at least some of their claims within one year of the August 2013 fee hikes, before annual claim renewal fees are due. 54% of survey respondents plan to drop over half their claims.

The survey also found that 87% believe the fee hikes will harm their business and 88% believe the fee hikes will harm the province’s mining industry. The survey was conducted from April 2-9. 51 prospectors and explorationists responded to it.

The previous provincial government hiked exploration claims fees by 75% in August 2013. The change put Nova Scotia fees dramatically out of step with other Atlantic provinces. The new fees are, on average, 53% higher than New Brunswick's and 621% higher than Newfoundland and Labrador's. Prospectors and explorationists are required to pay the fees to acquire exploration licenses and to renew them annually to keep claims in good standing.

To illustrate the impact of the fee hikes:

A prospector with 50 claims now has to pay $9500 in fees over ten years instead of $5,424 prior to the fee hikes, an increase of $4076.
A prospector with 300 claims now has to pay $57,000 in claim renewal fees over ten years instead of $32,547 prior to the fee hikes, an increase of $24,453.

This is in addition to various other fees and work requirements imposed by government. Because prospectors are at the beginning of the long and difficult mining cycle, their claims usually generate no revenue during this period and the vast majority never result in an actual mine being developed.

The government’s 2014-15 budget estimates that total government revenue from exploration claims will be $215,000. MANS estimates that the incremental revenue the fee hike will generate for the government will be approximately $75,000-$85,000.

A comparison of the exploration claims fees before and after Aug. 26, 2013 is below:

March 6, 2014
GLOBAL MINING SURVEY: NOVA SCOTIA RANKED LAST IN CANADA
Least attractive province for investment

March 6, 2014 - The Fraser Institute's annual global survey of mining executives shows that Nova Scotia continues to be seen as the least attractive jurisdiction in the country, and provincial government policies are a major reason.

The report shows that for the fifth year in a row, survey respondents said Nova Scotia is the least attractive province in Canada in which to invest. The report also says Nova Scotia's regulatory and policy environment, called a "report card to governments" by the survey, is a big part of the problem. Nova Scotia's ranking on the Policy Perception Index fell from 12th in the world in 2012 to 29th in 2013.

"Several recent reports have highlighted that our industry needs more support from the provincial government to help us grow and create jobs for Nova Scotians," said Sean Kirby, Executive Director of MANS. "We need the government to lower the cost of operating here and to fix policies that are hurting the industry. The first thing the government should do is give us in the spring budget the same fuel tax rebate that other resource industries get."

The mining and quarrying industry's policy concerns include being charged fuel tax even though other resource industries receive a tax rebate for fuel consumed off-highway; last year's 75% hike in claim staking fees and the overall high cost of operating in Nova Scotia; and regulations that discourage exploration and investment.

Other recent reports have also highlighted the challenges the industry faces:

The Ivany Commission said traditional rural industries, including mining, "will provide the essential foundations for Nova Scotia's rural economy." The Commission also highlighted the need to "provide a modern and responsive legislative framework to support and promote sustainable mineral resource management" (http://noworneverns.ca/).

A report released by PricewaterhouseCoopers in January concluded that Nova Scotia is still the highest-cost jurisdiction in Canada in terms of the industry's tax/royalty burden (www.pwc.com/ca/canminingtax).

The Fraser Institute report, which was released on March 3, is available at https://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research.... The survey includes responses from 690 mining companies around the world that reported exploration spending of US$3.4 billion in 2013.

Nova Scotia's mining and quarrying industry is a key creator of jobs and prosperity for Nova Scotians. It provides 5,500 jobs, mostly in rural areas, and contributes $420 million dollars to the province's economy each year. Mining is the highest-paying natural resource industry and one of the highest-paying of all industries in the province.

March 4, 2014
JOB LOSSES HIGHLIGHT IMPORTANCE OF MINING
"Could create more jobs if the government would help"

The Ivany Commission and recent bad economic news highlight the importance of the government helping the mining industry create jobs in rural areas, says the Mining Association of Nova Scotia.

"We are a major employer in rural areas but we could create even more jobs if the government would help us more," said Sean Kirby, Executive Director of MANS. "We are not asking the government for subsidies or handouts. Most of our requests would cost the government little to nothing. What we are looking for is a fairer, modernized, more sensible regulatory and policy environment in which to operate."

The mining and quarrying industry's policy concerns include being charged fuel tax even though other resource industries receive a tax rebate for fuel consumed off-highway; last year's 75% hike in claim staking fees and the fact that Nova Scotia is the highest-cost jurisdiction in Canada in terms of the industry's tax/royalty burden; and regulations that discourage exploration and investment.

The Ivany Commission said traditional rural industries, including mining, "will provide the essential foundations for Nova Scotia's rural economy. The basic viability of many of our rural communities hinges on whether these sectors can create more and better jobs and generate more wealth."

A 2013 government-commissioned study of Nova Scotia's mining and quarrying industry found that the industry lost 800 jobs and $80 million in annual economic activity in the past five years. However, the industry still provides 5500 jobs, mostly in rural areas, and contributes $420 million to the province's economy each year. Mining is the highest-paying natural resource industry and one of the highest-paying of all industries in the province.

"If Nova Scotians are to overcome our economic and demographic challenges, the province needs industries like ours to grow," said Kirby. "We need the government to fix unhelpful policies that are holding our industry back and costing the province jobs."

February 12, 2014
IVANY HIGHLIGHTS IMPORTANCE OF MINING AND QUARRYING
Report notes that "regulatory barriers and policy constraints" are harming industry

The Ivany Commission's report is highlighting that one of Nova Scotia's oldest industries is still essential to the province's future.

"Mining and quarrying may be an old industry but it is vital to the new economy and our modern way of life," said Sean Kirby, Executive Director of MANS. "The industry employs 5500 people, mostly in rural areas, and contributes $420 million dollars to the province's economy each year. The Commission has done a good job recognizing our industry's importance while also flagging that government can do more to help the industry grow and create jobs."

The just-released report by the Commission on Building Our New Economy states: "In future, as in the past, the traditional rural industries - tourism, manufacturing, mining, fisheries, forestry and agriculture - will provide the essential foundations for Nova Scotia's rural economy. The basic viability of many of our rural communities hinges on whether these sectors can create more and better jobs and generate more wealth."

In assessing the challenges and strengths of Nova Scotia's mining and quarrying industry, the report states: "Rising global demand for mineral and energy products over the past decade played a large part in sustaining the Canadian economy through the financial and market upheavals of the period. Nova Scotia did not enjoy the benefits of this growth in demand largely because of our traditional over-dependence on the one U.S. market. However, regulatory barriers and policy constraints were factors as well....[S]trengths lie in world-class industrial mineral deposits and tidewater quarries, coupled with excellent geological database. Specific opportunities include re-opening the Donkin mine, gypsum market recovery (mainly U.S.) and gold potential. There is limited metals potential. Land use constraints and opposition impede industry development."

The Commission highlights the need to "provide a modern and responsive legislative framework to support and promote sustainable mineral resource management" during the upcoming review of the province's Mineral Resources Act.

Mining started in Nova Scotia in Sydney, Cape Breton, in 1672 when coal was first mined. 350 years later, today's mining and quarrying industry is a sophisticated, high tech business that uses technology and knowledge to extract materials safely, sustainably and responsibly. More information about how the modern industry works and is regulated is available at www.NotYourGrandfathersMining.ca

January 2014
SURVEY: MINING INDUSTRY SEES BETTER DAYS AHEAD
“Starting to turn the corner”

It may be unusually cold outside this winter but Nova Scotia mining and quarrying companies are feeling more optimistic about job creation, according to a recent survey.

"Our industry has lost 800 jobs in the past five years but we are starting to turn the corner,” said Sean Kirby, Executive Director of MANS. "Our members increasingly anticipate hiring more employees or at least maintaining the number of employees they currently have.

With an improving global economy and greater support from the provincial government, we could create more jobs and opportunity for Nova Scotians, especially in the rural areas that are in such desperate need of help.”

A poll recently conducted by the Mining Association of Nova Scotia shows 27.5% of industry players anticipate hiring more employees (compared to 11% in September 2013) and only 10% expect to decrease employees (compared to 18% in September). 51% of respondents anticipate their number of employees will be the same in the next six months (compared to 60%). The online survey was conducted January 6-21. The 51 respondents included the full range of industry players - producers, prospectors/explorers and service/supply companies.

The potential Touquoy gold mine in Moose River is an example of the industry’s job creation potential. The mine’s owners, DDV, expect the mine will create 300 jobs during the construction phase and 150 jobs during ongoing operations. The mine will have an annual payroll of over $13 million and generate millions of dollars in tax and royalty payments for the provincial government when it starts in 2015.

“We are very excited about the Touquoy mine and the benefits it will create for the community and the entire province,” said Wally Bucknell, DDV’s Managing Director and CEO. “The mine will make it possible for 150 Nova Scotians to stay in the province or come home from away. We are committed to hiring as many local people as possible.”

A 2013 government-commissioned study of Nova Scotia’s mining and quarrying industry found that the industry lost 800 jobs and $80 million in annual economic activity during the global economic downturn. However, the industry still provides 5500 jobs, mostly in rural areas, and contributes $420 million to the province’s economy each year. Mining is the highest-paying natural resource industry and one of the highest-paying of all industries in the province.

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