New frontier of resource wealth beckons Chinese

"There is good rule of law, predictability of government and a very well understood set of rules, and that is a reason why Chinese mining companies should come to Canada," said Mingay, who is planning to travel to China in May to visit contacts and seek business opportunities. He said Canada's resource laws are now less restrictive to foreign ownership than those of the neighboring United States.

"Our rules are comparable to the rules used in South Africa's and Australia's mining sectors. So there is a world standard for mineral reserves and resources. It makes for predictability when you come over and everybody is talking the same language - like an audited financial statement," Mingay told China Daily at the Toronto mining symposium.

An example of Canada's transparent rules, the lawyer said, is National Instrument 43-101, a classification system that requires disclosure from publicly traded companies about who owns or controls mineral properties in the country. This and other legal mechanisms encourage good corporate governance by foreign firms that invest in Canadian miners while providing transparency for all involved, Mingay said.

"Canada builds on investments and immigration from other countries and we are very pro-investment," he said. "We want to guide Chinese investors in developing and implementing business strategies as they take advantage of changes in Canada's north."

The region's three resource-rich territories are largely under-explored and may take generations to exploit fully, said Mingay, though he cautioned Chinese companies about the disruptive nature of mineral exploration and development on aboriginal communities and lands. He said potential investors from China need to balance their profit motive with corporate social responsibilities such as creating jobs for local people and respecting their interests.

"If Chinese mining companies are investing in greenfield projects, there are no prohibitions," Mingay said, referring to investments that involve new construction rather than existing businesses. "They just have to abide by our practices and procedures. Ours is a very acceptable way of doing business, with good environment, good corporate social responsibility and good governance."

Cassels Brock is currently assisting in negotiations to transfer some powers from Canada's federal government to local administrations and aboriginal communities in the Northwest Territories, including management of land and resources. The devolution agreement is intended to address the concerns of aboriginal peoples, known in Canada as First Nations, who make up nearly 50 percent of the Northwest Territories' population of 43,000.

Due to a historical lack of clarity as to who holds legal rights to northern Canada's resources, the region has been untapped. Mingay said the government in Ottawa, the Canadian capital, is committed to building and improving roads and other infrastructure in the far north, which will further encourage deal-seekers from abroad.

More than $100 billion in federal investment is planned for a range of projects in the north including diamond mines in the Northwest Territories and Nunavut, uranium exploration in Nunavut and the province of Labrador and Newfoundland, and the Mackenzie and Alaska Highway gas pipeline projects in, respectively, the Northwest Territories and Yukon.