MINERAL ECONOMICS SOCIETY

Report to CIM Council: Activities During 1999-2000

INTRODUCTION

Fiscal 2000 was another successful year for the Mineral Economics Society (MES). The organization continues to be in excellent financial condition and continues to meet its donor obligations to the University sector. During the year the Society was very occupied with various aspects of the planning for Mining Millennium 2000, which was held in Toronto (where most members of the Society are located). Additionally an emphasis was placed on establishing and implementing an education policy to guide the Society in its educational plans and donations for the future. MES, an important organization within the Canadian Institute of Mining, Metallurgy and Petroleum (CIM); continues to be a key source of information for practitioners in the field of mineral economics.

Executive Committee: 1999- 2000 Fiscal Year

Chairman
Keith Spence
Export Development Corporation


Vice-Chairman

Jane Spooner
Micon International


Secretary

J.C. St-Amour
Loewen Ondaatje McCutcheon


Treasurer

Joyce Bish
Midland Walwyn Capital

MES Sub-Committees: 1998/99 Fiscal Year

Members of the sub-commitee were as follows :

Education Committee
Jacqueline Allison
Credit Suisse First Boston Canada



Ore Reserve Committee

John Postle
Roscoe Postle Associates


Bernie Haystead
CIBC World Markets


Discussion Group

David Boynton
Canaccord Capital


Steve Braun
Nesbitt Burns

Paul Rollinson
Deutsche Bank


Publications

Larry Smith
Rio Algom

STANDING COMMITTEE ON ORE RESERVES

The OSC/TSE task force officially accepted the CIM’s ore reserve definitions (as amended from time to time) as the basis for the presentation of ore reserves. The past year saw these definitions being formalized into the new OSC regulations called 43-101. Currently the final draft of the definitions are posted on the CIM website for comments. The committee has been co-ordinating with foreign counterparts to develop an international standard for reserve definitions. I would again like to thank the Committee and its Co-Chairmen, John Postle and Bernie Haystead for their work.

THE DISCUSSION GROUP

In 1999/2000, MES continued with its "Discussion Group" meetings in keeping with our tradition of inviting speakers to give topical presentations to the Toronto Mining community in an informal setting. The program runs on a strictly break-even basis, with venue costs being covered by corporate sponsors and from the modest proceeds of "soda" sales. Meetings held over the course of the fiscal year are as follows:

Speaker:    Rhona O’Connell, Commodities Analyst, T. Hoare Canaccord
Topic:      Precious Metals Overview
Sponsor:   River Gold Mines Ltd

Speaker:   Claude Birtt, VP Exploration, Pangea Goldfields
Topic :      Developments in Tanzania
Sponsor:    Canaccord Capital

Due to the planning activities for PDAC/CIM Mining Millennium 2000, there were lesser sessions in fiscal 2000

MINING MILLENNIUM 2000

MES members and executives were actively involved in several aspects of CIM/PDAC’s Mining Millennium 2000 (MM 2000), thus aiding in the success of this world class conference. MES’s involvement included the following

Planning of Mineral Economic Technical Sessions:	J.C. St-Amour Jane Spooner Keith Spence
Planning of Mineral Property Valuation Day:	Keith Spence
Presentations at Mineral Property Valuation Day:	Keith Spence Larry Smith Craig Roberts
Sessions Chairs at Technical Sessions	J.C. St-Amour Keith Spence
Mining Millennium Marketing Committee	Keith Spence
Opening Ceremonies	Jacqueline Allison

EDUCATION COMMITTEE

Another key achievement for fiscal 2000 was the establishment of an education policy and guidelines for disbursement of MES educational funds. Currently MES funds an Adjunct Professorship Program at the University of Toronto and a Mine Economics Program at the University of British Columbia.

The new policy includes a continuation of our priority funding to both the University of Toronto and the University of British Columbia, but also increases the scope and broadens the number of universities that will be funded and the types of educational programs/activities that will receive MES funds. MES commitment over the past five years to fund the Adjunct Professorship program at the University of Toronto recently expired. Under this program MES provided a total of $50,000 to the University. MES has recently agreed to renew the funding of the program at the University of Toronto on the basis of $10,000 per year for three years, for a Total of $30,000. Our commitment of a total of $40,000, at $8,000 per year over five years to the University of British Columbia continues.

PUBLICATIONS COMMITTEE

This Committee, Chaired by Larry Smith and assisted by Rob Halupka, has been involved in a publication project with Karl Harries. The intent is to jointly publish another edition of his "Royalty" book. Discussions are still ongoing.

OTHER EDUCATIONAL FUNDING

Last year MES provided written support for the University of Toronto Mining Engineering Students’ bid to host the University Mining Games in 2000. In addition to last year’s funding for the University students’ trip to northern Ontario to attend the games, this year, MES also provided funding to the games for its administrative activities.

REGULATORY AND TORONTO STOCK EXCHANGE (TSE)/ONTARIO SECURITIES COMMISSION (OSC) INITIATIVES

The Society was actively involved with the CIM Head Office providing input on the TSE/OSC Task Force on Mining Standards. In addition to ore reserve definitions, MES provided valuable input on other areas relating to establishing of new standards for the industry. Keith Spence and Dr. William Roscoe are co-chairs of a committee of experienced valuation practitioners, which will develop a Canadian code for the Valuation of mineral properties. In addition to the in-depth research that is being conducted by the committee, the committee held a "Valuation Day" series of technical sessions at MM 2000. The sessions were well received and there has been considerable demand for copies of the day’s proceedings. MES members that are part of the committee include:

• Paul Lunney
• Craig Roberts
• Keith Spence
  

OTHER ACTIVITIES

In addition to our MES activities, we also continue to assist CIM Head Office on its Audit Committee (Keith Spence serves as Chairman) and we also provided input on other matters of interest to the CIM membership as a whole (eg Publicatinns Committee, CIM Bulletin Committee and Membership Committee).

Thank you for letting me serve you as your Chairman for the past two years.

Keith N. Spence
Chairman, Mineral Economics Society