History lessons

CIM Bulletin, Vol. 82, No. 922, 1989

Robert B. Parsons, Partner, Price Waterhouse, Toronto

In this period of improved metal prices and reported profits, valuable lessons should be recalled from the 1970s when a similar cycle lured the federal and provincial governments into thinking that they could grab bigger pieces of the pie without harming the minerals industry. It took years for the industry to recover from the damage inflicted by that unprecedented scramble for higher tax revenues. It is hoped that the current policy makers will have learned from the lessons of the seventies, and will realize that mining companies need to keep a reasonable share of profits realized during the good years in order to prepare for the inevitable downturn in the cycle.