JOHANNESBURG (miningweekly.com) – Metal and nonmetallic mineral output in Canada’s North would likely grow by 91% from 2011 to 2020, a compound yearly growth rate of 7.5%, a report by research organisation Centre for the North indicates.

The Future of Mining in Canada’s North report put forward that the yearly gross domestic product of mining in the north, which amounted to C$4.4-billion in 2011, was expected to reach C$8.5-billion in 2020.

The Centre for the North noted, however, that the significant increases in output and employment by 2020 would depend on greater efforts by industry, governments and communities to address key issues, including infrastructure, regulatory uncertainty, skills shortages and Aboriginal rights.

"Mining is the future economic driver of Canada's North. To fully reap the benefits of this potential, we must find the right balance between risk and opportunity. For instance, governments need to be conscious of how changes to the regulatory environment can affect communities and industry.

“Strong efforts to ensure a favourable business climate can leave communities feeling vulnerable. Going too far in the opposite direction can act as a deterrent to investment,” Centre for the North director Anja Jeffrey said.

He added that equally important and amplified by current Aboriginal demands for greater self-determination, was the need for trust between Aboriginal communities, governments and industry.

“Many northern and Aboriginal regions continue to worry about the effects mining projects may have on their lands and on the environment. Such issues can only be resolved through dialogue."

Although community engagement and environmental protection had improved in recent decades, and the business climate in Canada had been stable, impediments to sustainable growth remained.

The report identified six main issues and potential solutions.

It stated that a solution to cumbersome regulations and duplication among governments could be to conclude more transparent impact and benefit agreements, allowing companies to accommodate local residents' needs and give communities a chance to participate in negotiations.

It was also proposed that public–private partnerships could relieve companies of some of the costs they incur when constructing their own infrastructure, as the biggest challenge posed to northern mining development was the lack of transportation, energy and communities’ infrastructure.

The study also found that women, new Canadians and the youth were under-represented in the mining industry. It put forward that the North's Aboriginal population could supply new workers, but that these persons would require education and training to work in the mining industry.

Engagement of local and Aboriginal communities was also highlighted, “Mining companies need to demystify their activities. Communication that begins at the outset of a project and continues through the life of the mine is vital. So are the settlement of outstanding land claims and the conclusion of resource agreements,” the report read.

Further, the report called for environmental stewardship. Despite a substantial improvement in the industry's environmental performance in recent decades, communities still had legitimate concerns about the ecological impact of projects on natural habitats and traditional lands.

Further to implementing sustainable practices during production, the industry would have to, in collaboration with the local communities, develop plans for mine closure, decommissioning and reclamation.