TORONTO (miningweekly.com) – The Mining Association of Canada (MAC) lauded the Canadian government on its new trade strategy, the Global Markets Action Plan, announced by International Trade Minister Ed Fast on Wednesday morning.

"The Canadian mining industry welcomes the new Global Markets Action Plan and we look forward to working with the Government of Canada to implement it, particularly the development of the extractive sector strategy," MAC president and CEO Pierre Gratton said in a statement.

He described the new trade strategy as comprehensive, adding that the new strategy focused on priority markets with significant opportunities for Canadian businesses, which was critical for Canada to compete against other countries for highly coveted mining investment. The strategy would also help give Canadian companies an edge in accessing capital and mineral resources globally.

The Global Markets Action Plan included several elements that would help strengthen Canadian mining abroad by reconfirming the government’s focus on completing trade agreements with priority markets, including free trade agreements and foreign investment promotion and protection agreements.

It would also enhance the Trade Commissioner Network's reach to further support Canadian business abroad; establish a new extractive sector strategy that complemented Canada's corporate social responsibility strategy, ‘Building the Canadian Advantage: A CSR Strategy for the Canadian International Extractive Sector’; and create an advisory board for natural resources to provide strategic insight, advice and real-world perspectives on how Canadian business could stay competitive globally.

From an export perspective, mining accounted for 20.4% ($92.6-billion) of Canada's total export value in 2012. From a finance perspective, of the $10.3-billion in mining equity raised on the TSX and TSX-V in 2012, $6.6-billion was for projects in Latin America, Africa, Asia and Australia.

These investments generated significant economic activities both domestically and in recipient jurisdictions abroad. For example, the professional services supply side of Canada's mining industry, including the financial, legal, accounting, engineering, environmental and other related components of international projects, represented considerable employment in Canada.

The MAC added that the Canadian mining supply sector constituted more than 3 200 companies, many of which supported international mining projects in a myriad of ways - from exploration to mine closure.

To help showcase the economic benefits that accrue from mining projects, the World Gold Council recently released a report, ‘Responsible Gold Mining and Value Distribution’, surveying almost 100 gold mines around the world, including several from Canada. The report found that out of $55.6-billion in total expenditures, at least $44.7-billion, or 80%, was paid out in the country where the operation was situated.

The MAC stated that the economic and social benefits that Canadian mining companies provided to their host countries were both vast and significant.

"Internationally, natural resource companies create jobs and business development through local procurement in the communities where they operate, as well as support the building of infrastructure and the creation of training and skills development programmes.

“Benefits also accrue via tax and royalty payments and private investments made by mining companies that go towards public health and education services and community programmes,” Gratton said.