Co-operative spirit energizes industry.

The year 2000 will be remembered as the Year of the Survivor for the mining industry as mining companies around the world competed for limited capital. Low commodity prices in many sectors continued to force tough decisions on all fronts and obligated every company involved in mining to take a hard look at their plans for 2001.

"The big issue right now is the industry has to be highly efficient to overcome this period," says Saskatchewan Mining Association (SMA) President Josef Spross. "When companies can slim and trim their operations and still remain viable it gives us confidence they will be even stronger when prices go up."

Now more than ever the SMA is crucial in making federal and provincial government departments understand the situation from mining's point of view. Spross says there has been a significant change in how mining is perceived by politicians and bureaucrats.

"Up to this past year I had a feeling some saw the industry coming to them just for money. There was, in my mind, a split opinion on how to deal with the mining industry."

Now it feels like everyone is on the same page.

"One of the major achievements in the year was that through our communication with government departments, such as Finance and Energy and Mines, is that government has realized how important minerals and the mining industry are to Saskatchewan. They are really now trying to be actively involved in addressing the needs of the mining industry."

Spross checks off signs of a good relationship between government and mining, starting with an understanding financial backing is one spoke in the wheel of industry promotion. Reducing exploration fees, ironing out ambiguities in the Mines Act to present straightforward mining regulations and allowing the chief mines inspector greater autonomy are individual measures that collectively draw more attention to Saskatchewan mining.

Having members of the provincial cabinet such as Mines Minister Maynard Sonntag and Finance Minister Eric Cline attend national and international forums elevates Saskatchewan's standing in the mining community. It also shows the province is serious about keeping pace with incentives offered in surrounding jurisdictions.

"Saskatchewan has now opened the door to welcome investors," Spross says.

The former Cameco executive is in continual contact with government and says he hammers on the mining industry's 'wish list' at each and every meeting.

"We continue to lobby the government for things like exemptions from fuel tax on off-road applications, gradually phase out the resource surcharge on the corporation capital tax and for an amendment to the Direct Agent Tax Remission Regulations, so that direct agents consumed in mining and mineral processing are exempt from sales tax," Spross says. "Of course we continually emphasize to various departments within government the importance of incentives for exploration."

Tremendous enthusiasm about diamonds and platinum stoke the exploration fires. Even though it's very difficult to get anyone to invest in gold, Spross says, there will come a time when gold prices will go up and people will be looking to Saskatchewan for its gold potential.

"Even when there isn't a lot of activity in a given sector you can't let it go," he advises. "You have to keep your claims and permits active -- you still have assets there."

Recent activity in coal and uranium prove his point. With all of North America on the lookout for more power, coal is still responsible for more than 70 per cent of Saskatchewan's electricity while uranium stands tall in the nuclear power field.

"Regardless of how the electricity is produced we should still see increased demand for our product," Spross says.

Around the industry Spross sees a vibrant potash sector coming off a year of record sales and production contrasted by low base metal prices with no short-term relief in sight. His second year as SMA president also saw intense focus on safety as seven mines achieved zero accident frequency.

"I think in general the industry is upbeat and we from the SMA are pleased with the progress we've made in lobbying governments," Spross says. "Saskatchewan is very fortunate to have our mineral resources and we need to continue developing our mining industry."