By Rose Ragsdale
For Mining News 

PDAC convention attracts record crowd

Annual gathering expands program offerings to better serve global mining industry; trade group elects first Aboriginal president

 

Last updated 3/25/2012 at Noon



More than 30,000 people attended the Prospectors and Developers Association of Canada Convention held in Toronto March 4 - 7, breaking last year's attendance record of 27,714 participants from 120 countries.

The annual convention, currently in its 80th year, attracts investors, analysts, mining executives, geologists, prospectors and international government delegations from all over the world and represents a tremendous networking and educational opportunity for the industry. The gathering's Trade Show and Investors Exchange, combined, featured more than 1,000 exhibitors.

According to a recent report generated by the Ontario Ministry of Tourism and Culture, the PDAC Convention contributed nearly C$72 million to Toronto's economy in 2011.

"The convention has really hit its stride in terms of its place in the global mineral industry-this year's attendance attests to that," said outgoing PDAC President Scott Jobin-Bevans. "The tremendous networking and educational opportunities the convention offers really sets the standard for the industry. No other annual convention for mineral exploration and mining draws a crowd of this size."


If the convention's growth trend continues-attendance has been climbing since 2009 and early registration figures are up from last year-the economic impact on the Toronto area is expected to increase in 2012.

Aboriginal focus

This year, the PDAC expanded its Aboriginal program at the convention to meet an increased demand for programming in areas of interest to Aboriginal people and the mineral industry.


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"The expansion of the Aboriginal Program is a reflection of the natural partnership between Aboriginal people and the mineral industry," said Jobin-Bevans. "Exploration and mining can be an engine for socio-economic development in Aboriginal communities-it supports business development, jobs, training, education and sustainable economic and community development."

The Aboriginal program included a short course on Aboriginal awareness and relationship-building, a technical session on training and human resource development, and the presentation of the Skookum Jim Award to the 51 percent Inuit-owned Nuna Group of Companies in recognition of their involvement in the mineral industry.

Recipients of the Skookum Jim Award have demonstrated exceptional achievement and/or service in an aboriginal-run service business for the Canadian mining industry or a Canadian aboriginal exploration or mining company, or have made a significant individual contribution to the mining industry.


Nuna was formed in 1993 and is owned by a partnership of the Nunasi Corporation of Northwest Territories (25.5 percent); the Kitikmeot Corporation (25.5 percent); and Nuna Management (49 percent).

Nuna was contracted to build the 567-kilometer ice road from Yellowknife to Lupin, Nunavut, and since 1998, the company has operated and maintained this roadway, which provides access to northern mining sites each winter.

Today, the Nuna Group provides services through a group of seven subsidiary companies and 14 joint ventures and partnerships. These include construction services, logistics, contract mining, infrastructure planning, earthworks, large diameter drilling, and mining support services and mining products.


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Sharing the economic benefits of the business with Inuit, Aboriginal People, and northerners has resulted in the Nuna Group having, among owners and subcontractors, a very high proportion of northern content on projects. The company, which is dedicated to ongoing employee training, has a work force in excess of 600 people on various projects in northern Canada and sources 66-81 percent of the goods and services it uses from the North.

The PDAC also honored the Mine Training Society with a Special Achievement Award for its work. The Society, a non-profit organization comprised of Aboriginal, industry, and government partners, provides Aboriginal people in the Northwest Territories with opportunities to develop job skills that can be used in the mining industry. The society's objectives are to screen, select, train, and place Northerners in all areas of mining; and in cooperation with the NWT's education system and communities, build a legacy of education and awareness about the employee and skill requirements of the mining industry.


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The Society works with mining companies and industry service providers to bring training and jobs together, funding up to 50 percent of eligible costs for training programs.

Priority for funding is given to training proposals that are skills based and lead directly to employment.

The MTS is a pioneer in this area and serves as a model for the other training societies across the North.


Since 2004, the Society and its partners have trained 854 individuals out of a total 1,095 applications, and 600 people have been employed in the mine and mine services sectors.

Courses offered include: general trades training, environmental monitoring, first-aid first responder, driller helper, underground mining (heavy equipment operator, etc.) and mineral process operation.

Another highlight of the Aboriginal program was the Aboriginal Forum held March 5, which showcased models for successful Aboriginal participation in the mineral industry. The forum included a presentation on the Ring of Fire, with participants from Webequie First Nation, Cliffs Natural Resources Inc. and Noront Resources Ltd. The forum also provided a venue for the signing of agreements between industry and Aboriginal communities. The event ended with a one-hour networking reception that was open to the public.


"Through the Aboriginal Program at the PDAC Convention, we are providing a venue for dialogue, information-sharing and networking to increase Aboriginal participation in the mineral industry, promote partnerships and work towards prosperity for Aboriginal communities and the mineral industry," Jobin-Bevans explained.

Other PDAC award recipients

In addition to the Nuna Group and the Mine Training Society, the PDAC recognized a number of outstanding individuals, companies and organizations during its awards evening March 5 at the Fairmont Royal York Hotel in Toronto.

The PDAC's awards program dates back to 1977 when it bestowed the first Bill Dennis Award for prospecting success.
2012 PDAC award recipients include: 
Detour Gold Corp President and CEO Gerald Panneton received the Bill Dennis Award for prospecting success or for a Canadian mineral discovery.


Panneton advanced the company's Detour Lake property in northern Ontario into a world-class, low-grade, high-tonnage gold deposit with reserves of some 14.9 million ounces of gold.
Osisko Mining Corp. won the Viola R. MacMillan Award for company or mine development.

Osisko successfully developed and brought into production its Canadian Malartic gold property in Quebec's Abitibi gold belt.

The mine began commercial production in May 2011 and currently has an estimated 10.71 million ounces in proven and probable reserves.
David Giles, director of exploration for Mexican-based Fresnillo plc, received Thayer Lindsley Award for mineral discoveries outside Canada.

Giles headed up exploration that has yielded several ore finds in Mexico and Latin America, including the discovery of a new vein system in the Fresnillo district that led to the opening of the Saucito mine in 2011; the San Julian silver-gold and Orisyvo gold deposits, both now under development; and the Francisco I. Madero SEDEX deposit that led to the opening of an important new mine in 2002.
Deborah McCombe won the 2012 Distinguished Service Award.

McCombe is a longtime volunteer and supporter of the PDAC, most notably for chairing the international affairs committee since its establishment in 2004.

She also has been active in other mineral industry associations, including the Canadian Institute for Mining, Metallurgy and Petroleum.

McCombe is currently executive vice president of Roscoe Postle & Associates.
The Mining Association of Canada received the Environmental and Social Responsibility Award for its flagship initiative, Towards Sustainable Mining.

This innovative program aims to improve the mining industry's overall performance by matching it with the priorities and values of Canadians.

TSM is acknowledged as one of the best industry association sustainability initiatives in the world and has been ranked "best in class" by independent studies conducted in 2005 and 2009.


Regulatory reform focus

Speaking to the PDAC delegates March 5, Canadian Minister of Natural Resources Joe Oliver described the federal government's efforts to improve the regulatory system in Canada and its goal of one project, one review, in a clearly defined time period. He said the government must keep a steady focus on that goal so that Canada can continue to attract investment.

"The exploration and mining industry has been a cornerstone of the Canadian economy for generations, shaping our national identity with benefits in all regions," said Minister Oliver. "Canada has stable, predictable economic conditions, a favorable tax regime, and is a leader in geoscience and technological innovation. Now we are taking the next steps to modernize our regulatory system. … Our ultimate goal is one project, one review, completed in a clearly defined time period."

Commenting on the minister's remarks, Jobin-Bevans said, "We're encouraged by the federal government's commitment to an improved regulatory process. As a national association representing close to 9,000 individual and corporate members involved in mineral exploration and development, the PDAC works to ensure that Canada continues to be the world leader in attracting exploration investment."

PDAC Executive Director Ross Gallinger also commented: "An effective regulatory system is a key factor in a company's decision about where to invest. Mineral exploration is a high-risk venture, and companies want to know that the permitting and regulatory process is consistent and timely. We are confident that improvements can be made that continue to satisfy social and environmental objectives while allowing for new projects and jobs," he added.

The PDAC also added two new sessions to the convention's extensive 3 ½-day program this year, one on consultation and one on engagement, agreements and capacity building that was open to the public.

For first-time attendee, Lara Lewis, an economic geologist at the Yukon Geological Survey, the PDAC convention was a bit overwhelming.

"This was my first PDAC so I don't have a very balanced perspective of the conference," Lewis told Mining News. "The conference certainly is a force to be reckoned with - over 30,000 registrants, and maybe up to 35,000, if rumors are to be believed.

"It felt like one of those supermarket contests where the prize is whatever you can fit in your cart in 10 minutes, except that you're trying to load up on meetings, talks, maps and drill core in a matter of days," she observed. "I made it through half the booths on the Investors (Exchange) side, which was far busier than the service and geological survey side (Trade Show) where the Yukon Geological Survey was staked out. Luckily, a lot of Yukon geologists came to visit us."

One exhibitor, who asked to not be identified, said the PDAC trade show was a bit boring because it was "too big and not as many people attend it as in the past as they are now getting pulled away to the Investors room."

Lewis said she heard from others attending the conference that "there wasn't quite the same excitement at PDAC this year."

"It's difficult for some smaller companies to raise money and the 'blush may have faded from the rose', but despite market uncertainties, preliminary indications are that exploration in Yukon for 2012 will be just as robust as it was in 2011," she added.

Rob Krcmarov, Barrick Gold's senior vice president of global exploration, praised the gathering for bringing together explorers, developers and producers "for what is arguably the global mining industry's most important event of the year."

"Our team is always on the hunt for promising projects, and the PDAC Convention offers up a universe of opportunities under one roof. There's no other forum like it," Krcmarov said.

Northerners also expressed delight with the convention's additional emphasis on Aboriginal concerns and issues and the election of Glenn Nolan as the first-ever Aboriginal president of PDAC.

New face of PDAC

Nolan, a Missanabie Cree (he was chief of that First Nation from 2001 to 2010), is vice president of Aboriginal affairs for Noront Resources Ltd. 
"I was at the right place at the right time," said Nolan.

"I'm not a geologist, an engineer or a mine developer, but I do have the experience to give something beyond an industry-backed position.

The industry is ready for a new face."
Nolan grew up in a mining home (his late father, Ken Nolan, started at the Renabie mine near Wawa, Ont.

in 1947, and came to Atikokan, and Steep Rock, in 1972), and has been involved in the field in a wide range of ways since completing a geological technician program at Sault College in the late 1970s.
He started in the industry with Cominco, before launching his own contracting firm doing prospecting work, claim staking and line cutting.

Involving the local people in the work - they were often Aboriginal - was an approach he adopted right from the start. He got to see the other side of the coin as a chief, and worked to make sure the junior miners working Missanabie lands fully involved Native peoples.
Nolan got involved with PDAC while he was chief at Missanabie, when he served on a committee of the organization's board of directors in 2004.

He became a full member of the board in 2005 and was first elected to an executive position (second vice-president) in 2008.
Toronto-based Noront is an exploration company and a major player in the Ring of Fire in the James Bay Lowlands, where it has invested more than C$100 million and discovered proven major reserves of chromite and other platinum group metals, nickel and copper.

The company has been active in that area since 2007, and also has holdings elsewhere in Canada as well as in Mexico, China and Europe.
Noront aims to fully involve Aboriginal people in the development of the Ring of Fire, and Nolan believes strongly these resources offer an opportunity for the First Nations in the region to grow and prosper.

His work across Canada (and in South America) has convinced him that "these communities, Aboriginal, Métis, Inuit, really want to be involved, and are taking control of mining development ."
The challenge now is to make sure they have the resources and training to be able to do so effectively.
Mining firms are more committed than ever to corporate responsibility, and there is the legal need to involve Aboriginal peoples when working in their territories.

PDAC has been a leader in both areas.

Observers say this is a sea change in the way mining works, and Nolan acknowledges some conflict is inevitable,

But he says success stories far outnumber the trouble spots. He said getting that message out as one of the major challenges ahead for PDAC and the industry. 
"As an industry we have not done a good enough job of getting that message [of the benefits of mining] out," Nolan explained. "People who work in the industry, who see the chain of product coming out of mineral resource, [understand] the benefits."
Ultimately, even the most sophisticated of information technologies would not be possible without the mineral resources from which communication and computer devices are made.

"As a society we are heavily dependent on these resources, and really it's always been that way.

We tend to forget that.

Native people used to quarry stone in Quetico Park, and mine silver and copper on the North Shore [of Lake Superior]," he observed
Nolan has traveled extensively since joining the PDAC board, and expects this will increase during his term as president.

Noront is supportive of his role with PDAC, and has agreed to allow him to devote half his time the organization.


"Canada is the world leader in all aspects of mining, from technology to corporate responsibility to legislation to best practices.

[The world] wants to know what Canada is doing," he said.

"You name it, we're invited."

 

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