Those familiar with mining development in Canada are all too conversant with the tricky juggling act of resource extraction. The demand for social and environmental responsibility, government royalties, and maintaining global competitiveness can all pull in different directions. Government leaders across Canada often pride themselves in having fostered a mining sector that is one of “the most efficient, effective and competitive in the world,” backed by a “world-class environmental protection regime” (Natural Resources Canada, 2013).
But despite this optimistic picture, mining development in Canada is often a hotly contested policy arena. Look no further than the Federal government’s push for the rapid development of Ontario’s ‘Ring of Fire’, or the recently rejected coal mine in Comox, to get a flavour for the tug of war between vested interests.
Although Canada is a global leader in mining production, levels of investment are heavily dictated by outside pressures—guided by the ebb and flow of global commodity prices. Moreover, due to the plethora of mining opportunities across the world, including a growing number of emerging economies, capital is highly mobile and gravitates towards countries with high risk adjusted returns – valuing stable government regimes, low tax-rates, and good infrastructure in this comparative construct. Within Canada, the competition to attract new capital is then spread across provinces and territories, all with different tax structures, environmental rules and royalty requirements.