The mining industry across the North says the Canada Emergency Wage Subsidy Program needs to be adjusted to reflect the realities of the industry.

The requirement to show a drop in revenue of 30 per cent over the last three months compared to the same period last year just doesn’t work for the exploration and mining industry, say the three chambers of mines across the northern territories.

In a letter sent by the chambers last week to federal Northern Affairs Minister Dan Vandal, the chambers insist eligibility of the federal program needs to be adjusted to recognize the seasonal nature of exploration and mining.

Many companies don’t have comparisons to the first three months of last year because they don’t normally start up until the spring – April, May, June.

Many exploration companies do not generate revenue but rather rely on financing from the commodity markets to fund their programs, the letter points out.

It suggests adjusting the eligibility requirements for the wage subsidy will provide companies with some certainty as they decide whether to get back into the field this year.

“While the mines would benefit from CEWS, due to the seasonality of operating in the North, some have uneven revenue generation, and some were ramping up to bring their mines into full operations last year,” says the letter.

“In both situations, a comparison of revenue to the same period last year is not reasonable or reflective of their revenue losses in 2020.

“We recommend that all companies with active mining operations in Yukon, Northwest Territories and Nunavut should qualify for CEWS regardless of 30 per cent revenue shortfall requirement.”

Not only should exploration and mining companies be eligible for the wage subsidy, but so too should companies that provide service and supplies to the industry, companies which can also be seasonal, says the letter.

Yukon Senator Pat Duncan, N.W.T. Senator Margaret Dawn Anderson and Nunavut Senator Dennis Patterson penned a joint letter late last week to federal Finance Minister Bill Morneau emphasizing the importance of supporting the industry.

“We write to you today with an urgent request to ensure that the proposed wage subsidy in Bill C-, A second Act respecting certain measures in response to COVID-19, does not exclude major industries and sectors in the territories, and throughout rural and northern Canada,” reads the April 9 letter from the senators to Morneau.

Representatives of the industry from across the North were on a conference call Wednesday with the Northern Affairs minister to discuss their concerns.

“We really hope that the federal government really takes into consideration some of the things that we brought up,” Ed Peart, the Yukon Chamber of Mines president, said in an interview this morning.

Peart noted, as does the joint letter from the three chambers, the exploration and mining industry is the largest economic engine in all three territories.

It is the largest employer, and generates essential economic activity right across the board, activity that includes companies in the service and supply sector, many of which are community-based companies and many of whom are owned by First Nations.

Peart said it’s still too early to assess what impact COVID-19 will have on this year’s field season. They’ll likely have a better idea in two or three weeks, he said.

“We had the powerhouses of all three territories sitting around the table,” Peart said of Wednesday’s conference call with Vandal.

“We really hope our message was heard loud and clear.”

He acknowledged there are other issues of financial support that need to be taken into consideration, such as the additional costs companies are incurring to keep their employees safe and to keep the communities they work close to safe.

They’re incurring the cost of self-isolating returning works, of transporting them by private charter aircraft rather than on regular commercial flights, he pointed out.

Peart said companies in the industry are committed to following the public safety recommendations to the letter, and even going above and beyond.

Many companies work in remote locations, far away from communities, Peart pointed out.

“We just feel we have to expand the criteria to include these types of operations in order to take advantage of the relief programs being offered everywhere else.”

Peart said every measure must be taken to support the industry that is so crucial to the economies of the three northern territories.

The letter from the three chambers of mines to Vandal reads: “Our industry provides over 10,000 jobs and over $3 billion in annual business spending, including a significant and growing share with Indigenous residents and businesses.

“As a result of these investments, our industry has generated several billion dollars in taxes and royalties to public and Indigenous governments and Inuit organizations.

“As you know, maintaining a healthy and sustainable minerals industry is vitally important to the Northern economy. However, in order for the three northern territories and Canada to continue to realize these benefits, our member companies need to survive this pandemic period to be strongly positioned to bring renewed investment back to the North and its communities.”

The letter notes companies rely heavily on the experience of their employees – full-time or seasonal – and they need to retain them to be strongly positioned for a rebound following the crisis.