Federal Government Overview - Canadian Exploration

I consider it an honour to be the opening speaker in this afternoon's session on "Canadian Exploration". I also think it most appropriate that this joint meeting of the MMIJ and AIME should consider this subject, because Canada is a major exporter of mineral products and Japan and the United States are our two largest customers. Clearly, therefore, both countries have a valid interest in developments on the Canadian minerals scene. I represent the Mineral Development Sector of the Canadian Department of Energy, Mines and Resources. I will therefore speak from the point of view of the Federal Government. At this point I would like to acknowledge the help and constructive criticism I have received from several of my colleagues in Mineral Development Sector in the preparation of this paper. In any discussion of exploration in Canada, it is essential to emphasize at the outset that Canada has a federal system of government, with powers shared between Ottawa and the provinces. Under our constitution, the federal government has jurisdiction over the north, and over offshore areas, while the provinces own the natural resources within their boundaries. They control the systems of land acquisition for exploration and the terns under which mining titles are issued, and are therefore able to determine the rate and conditions of exploration and development of these resources. It follows that the Federal Government can influence the exploration and development of the provincial resources only indirectly by consultation with provincial authorities. However, once the resources are developed and begin to flow to market, the Federal Government can exert a much stronger influence because of its constitutional right to control both inter-provincial and international trade, as well as through its general fiscal and tax powers.