ARCHIVED—Mining Trade Sector Review — Recommendations
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Table of Contents
- Acknowledgements
- 1.0 Executive Summary
- 2.0 Introduction
- 3.0 Mining Sector Recommendations (Detailed)
April 2008
Acknowledgements
The Mining Trade Sector Review (MTSR) team would like to express their appreciation to the stakeholders who participated in this process, particularly the 97 stakeholders who took the time to complete the questionaries and submit them. The team would also like to thank the 22 stakeholders who participated in the consensus meetings.
The MTSR team would like to thank their colleagues in Measurement Canada for both their support and the information provided during the project and to acknowledge the team stewards, Gilles Vinet and Sonia Roussy for their guidance and support during the review.
The team is satisfied that it has consulted with a sufficient number of sector stakeholders in order to solicit their opinion on what is the appropriate level of Measurement Canada intervention in the mining trade sector and welcomes any comments, questions or clarifications on the content of this report. The team is pleased to submit this report and encourages Measurement Canada’s Senior Management Committee (SMC) to accept the report’s recommendations.
The MTSR team:
Leader, Mining Sector Review
Sam Stouros
Phone: (613) 952-2627
Fax: (613) 952-1736
email: Sam Stouros
Western Region Representative
Rick Lawrence
Phone: (250) 363-3747
Fax: (250) 363-3419
email: Rick Lawrence
Ontario Region Representative
Larry Ranger
Phone: (705) 671-0633
Fax: (705) 671-0635
email: Larry Ranger
Eastern Region Representative
Robert Delisle
Phone: (514)283-3117
Fax: (514) 283-7230
email: Robert Delisle
1.0 Executive Summary
The following is a summary of the final recommendations. Additional details are provided in section 3.0 of the document.
Approvals
A consensus of stakeholders and the Mining Trade Sector Review (MTSR) team recommend that:
- Measurement Canada continue to require type approval for all mining measurement devices in this sector, with the exception of linear measuring devices used in the ship survey process. Approval testing should be offered to organizations that meet a formal Measurement Canada authorized service provider program for approval testing, with the final approvals issued by Measurement Canada.
- If Measurement Canada recognizes other countries’ approvals for the type approval process, that a formal process should be implemented with final approval remaining with Measurement Canada.
- Measurement Canada expand mutual acceptance agreements with other countries for approval testing.
Initial Inspections
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada continue to require mandatory initial inspection for all trade devices in the mining sector with the exception of devices used in the process of ship surveys and devices used in the refined gold, silver and diamond industry.
- Device tolerances should continue to be as per the Weights and Measures Act and Regulations in the short term, but that tolerances be aligned, where possible, to International Organization for Legal Metrology requirements, within the next ten years.
- Organizations other than Measurement Canada should be allowed to perform initial inspection provided they are authorized under the Measurement Canada accreditation program requirements.
- A certificate is to be provided to device owners and a seal affixed to devices, upon passing initial inspection, showing the date of inspection. Should periodic inspections become mandatory, an inspection expiry date is to be shown only on the certificate.
Periodic inspections
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada require mining trade devices to be inspected every two years, with the exception of devices used in the process of ship surveys and the refined gold, silver and diamond industry.
- Device tolerances continue to be as per the Weights and Measures Act and Regulations in the short term, but that tolerances be aligned, where possible, to International Organization for Legal Metrology requirements, within the next ten years.
- Periodic inspections be performed by Authorized Service Providers, provided they meet the established requirements of either the Measurement Canada accreditation or registration program.
- A voluntary program for periodic inspection be implemented for periodic inspection, until legislative changes can be made.
Net Quantity (Commodity) Inspections
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada continue to perform net quantity (commodity) inspections in the mining sector, on a random basis, until such time as an Alternative Service Delivery Mechanism (ASDM) can be put in place.
Legislation
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada retain overall responsibility for mining trade device legislation as provided in the Weights and Measures Act and Regulations.
- Measurement Canada’s standards affecting mining devices remain uniform for all provinces and territories of Canada.
- Measurement Canada work with the mining industry in an effort to harmonize requirements with international standards, where possible.
Physical Standards
A consensus of stakeholders and the MTSR team recommend that:
- Users be responsible to ensure physical standards are calibrated and have a valid certificate of calibration. Measurement Canada should retain overall responsibility to monitor and perform enforcement actions, when necessary.
- Measurement Canada exempt linear (static) measurement test standards used in the mining trade sector.
- Measurement Canada extend its alternative service delivery programs to include the calibration of standards used in the mining sector, but to remain available to perform this work, if required.
- Measurement Canada exempt physical standards in the refined gold, silver and diamond industry from its regulations.
Complaints
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada continue to provide complaint inspection services for this sector, but only after the two parties have had the opportunity to resolve the issue first.
- Measurement Canada’s role to investigate complaints about device accuracy be better known amongst sellers and purchasers of mining products.
- Measurement Canada’s legislation allow for the full disclosure of complaint inspection information to the two parties of the transaction.
Marketplace Monitoring
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada ensure that all stages of any future Mining Trade Sector Reviews provide an opportunity for the participation of vulnerable parties.
- Measurement Canada collect compliance data on mining devices and commodities and disseminate this information on a yearly basis to a registry of interested mining stakeholders, in aggregate form.
2.0 Introduction
2.1 Purpose of the Report
The purpose of this report is to provide Measurement Canada’s senior management with recommendations for establishing an appropriate level of metrological intervention in the Canadian mining trade sector.
2.2 Background
2.2.1 Industry Overview
Canada’s mining industry is vast and extensive and a major contributor to the Canadian economy. There are diamond mines in the Northwest Territories and salt mines in southern Ontario; gypsum and coal mines in Nova Scotia and bauxite mines in British Columbia; potash and uranium mines in Saskatchewan. Canada is a country rich in natural resources and due to a growing global economy, Canada’s mining industry appears to be in its “golden” age.
The use of trade measurement devices in this sector is equally as extensive. Heavy duty truck and railway scales for iron ore mining in Quebec as well as high precision platform scales for assaying gold in Ontario. Hopper and conveyor belt scales for potash lime and mica, and ship survey’s for the transfer of products like road salt and iron ore via Canadian waterways.
Stakeholders in this sector include large and small mining companies, provincial and federal departments and agencies, electricity power utilities, metal and non-metal manufactures and fabricators, measurement devices manufacturers, device repair companies and material handlers.
The current surge in the price of commodities has increased the interest for accurate measurement of mining products and the timing of the Mining Trade Sector Review could not have been better.
Measurement Canada has been involved with the mining sector for many years and the mining industry, for the most part, is aware of the Weights and Measures requirements for the use of approved devices and the inspectors who inspects these devices.
2.2.2 Sector Review
The mining trade sector review team performed extensive Canada-wide consultations contacting over 500 mining sector stakeholders. Stakeholders have included aboriginal and non-aboriginal Canadians, large and small mining companies, provincial and territorial governments, truck operators, mining workers, manufacturers of metal and non-metal products and service companies.
Input from initial stakeholder consultations and from feedback from 97 questionnaires was used in the development of draft recommendations contained in a discussion paper, issued January 2008. The discussion paper also contained research information on what other developed countries are doing in regards to legal metrology in the mining sector. Following the issue of the discussion paper, three cross Canada stakeholder consultation meetings were held between February and March 2008 in Calgary, Sudbury and Moncton. Input from these three meetings, as well as phone and email correspondence, has been used in preparing the final recommendations contained in this report.
This report summarizes mining sector stakeholders’ thoughts and concerns on an array of trade measurement issues and provides Measurement Canada senior management with the supporting rationale and considerations behind each recommendation. Although supporting rationale is provided, it is recommended that this report be read in conjunction with the Mining Trade Sector Review discussion paper.
Although input during the review indicated the vast majority of stakeholders want Measurement Canada to continue to perform device inspections in this sector, once given Measurement Canada’s need to move to alternative service delivery for this work, stakeholders provided input as to the best direction to proceed.
2.3 Clarification of Scope
The review of this sector includes measuring devices which are used in the selling and purchasing of mining products in Canada. Devices affected are those used for measuring such materials such as iron ore, steel, copper, coal, limestone, peat, potash, salt, gold, silver, diamonds, granite, magnesium, calcium, and gypsum.
This review does not include devices used in a non-trade application (e.g. internal company trade, check weighing) or devices used to verify or control the quality of mining products such as assaying gold, silver and nickel.
The review does not include devices used to measure metal and non-metal mining products at the wholesale or retail level such as gold and silver jewellery, copper and steel wire and table salt. The review does not include sand and gravel, stone aggregate or cement. These products will be included in other trade sector reviews to come.
2.4 Reference Material
The MTSR report entitled A Discussion Paper on Establishing an Appropriate Level of Intervention in the Mining Trade Sector , was published on MC’s website in January 2008. The MTSR team distributed this paper to all parties who had previously shown interest in the initiative. The paper was also posted on the Measurement Canada's website. Meeting minutes were prepared and distributed to those stakeholders who attended one or more of the three consultation meetings held during the winter of 2008.
Other reference materials include The National Institute of Standards and Technology (NIST) Handbook 44 and 133 and The International Organization for Legal Metrology (OIML) R-76-1.
3.0 Mining Sector Recommendations (Detailed)
3.1 Approvals
Background
Before a device can be used in trade in Canada, a prototype must receive approval from the Measurement Canada Approval Services Laboratory in Ottawa. The purpose of this approval is to ensure that a device is capable of measuring accurately under various conditions.
The approval process involves the evaluation of one or more devices of a particular type in accordance with the relevant regulations and specifications for design, composition, construction and performance. The sample device(s) are subjected to comprehensive testing at conditions which simulate the environment in which they are intended to operate. Once it has been determined that the instrument type complies with all specified approval requirements, pattern approval is granted and a notice of approval is issued.
Current
Measurement Canada legislation currently requires devices used in the mining industry to be approved. The only exemption is for laboratory scales. Research has shown that most industrialized countries of the world require some type of approval process for trade measurement devices used in the mining industry.
Recommendations
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada continue to require type approval for all mining devices in this sector, with the exception of linear measuring devices used in the ship survey process. Approval testing should be offered to organizations that meet a formal Measurement Canada ASP program for approval testing, with the final approvals issued by Measurement Canada.
- If Measurement Canada recognizes other countries’ approvals for the type approval process, that a formal process should be implemented with final approval remaining with Measurement Canada.
- Measurement Canada expand mutual acceptance agreements with other countries for approval testing.
Key Considerations
- Stakeholders indicated that Measurement Canada should not necessarily be the only device approval laboratory that conducts approval testing. Other authorized laboratories could be acceptable if they meet the established standard and that the standard would be a documented, auditable and that Measurement Canada be accountable for the program. Measurement Canada would be the organization that would make the final decision as to whether or not a given mining device receives an approval for use.
- Only Measurement Canada would have the authority to grant an approval, Device manufacturers would be required to go to a 3 rd party for approval testing.
- Measurement Canada has a Mutual Acceptance Agreement (MAA) with the International Organization of Legal Metrology for the approval of non-automatic weighing devices and related modules.
- By policy, bulletin GEN-7 exempts linear trade devices from approval and initial inspection, but Measurement Canada will need to amend section 4 of the Weights and Measures Regulations to state this exemption for specific mining sector devices.
Rationale
A consensus of stakeholders agreed that a device type approval program should continue for scales to ensure that only high quality devices will be used in trade applications. Acceptance of approval testing results from other organization or other jurisdictions may shorten the time it takes for some devices to receive approval. It may also reduce the cost of the obtaining the notice of approval for the device approval applicant. Vulnerable stakeholders indicated concerns with manufactures doing approval testing of their own devices and requested manufacturers be required to go to a 3rd party for this work.
Implementation
Priority: High
Time line:
Short Term (1 to 2 years) – Although Bulletin GEN-7 refers to this subject, Measurement Canada should make regulatory changes to formally exempt linear measuring devices used in the ship survey process from approval.
Long Term (5 to 10 years) – Measurement Canada to expand the use of formal programs to evaluate and recognize approval testing performed by other organizations or jurisdictions.
Responsibility Centre:
- Innovative Services Directorate (ISD) for work on mutual recognition arrangements.
- Program Development Directorate (PDD) for the work on having the Regulations amended.
3.2 Initial Inspections
Background
Unless exempt under the Weights and Measures Regulations , a device intended to be used in trade must be approved and initially inspected by a Measurement Canada inspector or Authorized Service Provider (ASP). This inspection ensures that devices are properly configured and calibrated before being used. The device must operate within the appropriate limits of error as prescribed by the Weights and Measures Act and Regulations or applicable specifications.
Depending on the complexity of the device, this inspection may take place at the manufacturer’s premises, service company shop or on-site after installation. Inspection results will determine if the instrument is certified for use or not. If the device meets requirements a verification indicator is placed on the certified device by either Measurement Canada or an ASP.
Current
Current legislation requires all devices used in the mining industry to pass an initial inspection prior to being used in trade, with the exception of laboratory scales. There are limits of error prescribed in the Weights and Measures Act and Regulations . Mining devices are tested at either the device manufacturer’s test facilities before they are sold or at their installed location.
Recommendations
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada continue to require mandatory initial inspection for all trade devices in the mining sector with the exception of devices used in the process of ship surveys and devices used in the refined gold, silver and diamond industry.
- Device tolerances should continue to be as per the Weights and Measures Act and Regulations in the short term, but that tolerances be aligned, where possible, to International Organization for Legal Metrology requirements, within the next ten years.
- Organizations other than Measurement Canada be allowed to perform initial inspection provided they are authorized under the Measurement Canada accreditation program requirements.
- A certificate is to be provided to device owners and a seal affixed to devices, upon passing initial inspection, showing the date of inspection. Should periodic inspections become mandatory, an inspection expiry date is to be shown only on the certificate.
Key Considerations
- Measurement Canada will need to amend the Weights and Measures Regulations as it applies to static measures used in the ship survey process.
- By policy, bulletin GEN-7 exempts linear trade devices from approval and initial inspection, Measurement Canada will need to amend section 4 of the Weights and Measures Regulations to state this exemption for specific mining sector devices.
Rationale
Static measures such as measuring tapes used in the ship survey process are controlled by measurement companies who regularly calibrate and maintain their equipment to international standards. Stakeholders who participated in the MTSR process, agree that a mandatory initial inspection program be continued for all scale types with the exception of scales used in the assaying of gold, silver and diamonds as their processes are heavily monitored and controlled.
Implementation
Priority: High
Time line:
Short Term (1 to 2 years) – Verification indicators (stickers) to be redesigned to show the inspection date only.
Short Term (1 to 2 years) – Measurement Canada to exempt linear measuring devices, used in the mining industry, from mandatory initial inspections.
Responsibility Centre:
PDD to exempt linear measuring devices and redesign the verification indicator (sticker).
3.3 Periodic Inspections
Background
Measurement Canada inspects weighing and measuring devices throughout their service lifetime to ensure they continue to measure accurately and are not used in a fraudulent manner. Appropriate corrective action is initiated for those measuring instruments which are not in compliance with the appropriate regulations and specifications.
Currently, there are no prescribed mandatory requirements for the periodic inspection of weighing and measuring devices in the Weights and Measures Act and Regulations . Measurement Canada inspections are based on priorities and available resources. It should be noted that most trade sector reviews conducted so far have included recommendations to establish mandatory periodic inspections.
Current
The Weights and Measures Act and Regulations does not exempt any mining devices from the requirement to be approved and initially inspected before being used in trade. Under the current legislation:
- There are no provisions that specifically exempt static measures used in the mining industry from periodic inspections. Measurement Canada has not made it a practice to inspect these devices due to the small number of complaints received in this area.
- There are no requirements for mining devices to be inspected after the initial inspection. It is the responsibility of the device owners to maintain their devices in compliance with the Weights and Measures Act.
- There are limits of error for devices prescribed in the Weights and Measures Act and Regulations.
Recommendations
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada require mining trade devices to be inspected every two years, with the exception of devices used in the process of ship surveys and the refined gold, silver and diamond industry.
- Device tolerances should continue to be as per the Weights and Measures Act and Regulations in the short term, but that tolerances be aligned, where possible, to International Organization for Legal Metrology requirements, within the next ten years.
- Periodic inspections be performed by authorized service providers, provided they meet the established requirements of either the Measurement Canada accreditation or registration program.
- A voluntary program for periodic inspection be implemented for periodic inspection, until legislative changes can be made.
Key Considerations
- An overlying concern with periodic inspection requirements is the cost to device owners. In many cases, owners are calibrating their scales on a regular basis via service contracts or by internal preventative maintenance programs. For the most part, calibrations being done are not as extensive as what is required for a Measurement Canada inspection. Regardless of the outcome of this review, stakeholders will still need to continue to perform maintenance calibrations to ensure devices remain accurate between inspections.
- The time interval for periodic inspections be revisited as compliance rates improve.
- Some stakeholders requested that device tolerances be commodity price based. Lower value commodities would receive less stringent tolerances. (NOTE: Current Measurement Canada requirements allow for alternate scale configurations to address low value commodities. Interested stakeholders should contact the Measurement Canada regional gravimetric specialist in regards to this option.)
- The implementation of mandatory inspections could result in device owners reducing maintenance calibration work to the legislated inspection periods, creating a lower compliance rate than currently exists. Measurement Canada will need to inform device owners of the need to continue to perform regular maintenance between inspections.
- The majority of stakeholder questionnaires indicated an annual periodic inspection, however, at the consensus meetings device owners indicated they would prefer at least two years between periodic inspections. Device owners indicated concerns with costs associated with annual inspections. Vulnerable parties at the consensus meetings agreed to a two year periodic inspection period.
- Changes to legislation will be required to introduce requirements for the mandatory periodic inspection of mining scales in Canada. Changes may also be needed to identify the mining devices types exempt from periodic inspection.
- A concern was raised that the document OIML R-76-1 did not include requirements for railway scales. This concern has since been clarified. R-76-1 does include requirements that, if adopted, could apply to railway scales used in Canada
Rationale
The majority of stakeholders who participated in the MTSR process agree that a mandatory periodic inspection program should be established. The final recommendation was based on the input from vulnerable parties at the consensus meetings and from the support for a two year periodic inspection period from stakeholders.
Some stakeholders felt that mining devices should not be required to have a mandatory periodic inspection period at all. Others said that mandatory inspections should not be required for those devices being calibrated on a regular basis via internal programs. Other options and opinions that were put forward and discussed during the MTSR process include:
- Reduce periodic inspections in recognition of service contracts or internal preventative maintenance programs doing calibration work on a regular basis.
- The financial impact concern that mandatory periodic inspections could have on mining companies who own scales in remote locations.
- Authorized service companies may be in short supply in remote areas and the few that are available could charge higher than normal fees.
Implementation
Priority: High
Time line:
Short Term (1 to 2 years) – Measurement Canada expand the scope of the registration program and authorize organizations to perform periodic inspections of mining devices (scales) on a voluntary basis.
Medium Term (2 to 5 years) – Measurement Canada to implement the necessary legislative reform to mandate periodic inspection of specific mining devices.
Responsibility Centre:
- ISD for expanding the registration program to include periodic inspection of mining scales.
- PDD for making the legislative changes to require mandatory periodic inspections.
3.4 Net Quantity (Commodities) Inspections
Background
The mining industry produces many products that are sold in packaged and pre-packaged quantities such as peat, peat moss, nickel and gold flakes .
Current
The net quantity inspection of mining products sold in bulk or packaged for wholesale use falls under the Weights and Measures Act . These products are usually randomly tested for net quantity by Measurement Canada inspectors based on priorities and available resources or in response to complaints.
Recommendations
- Measurement Canada should continue to perform net quantity (commodity) inspections in the mining sector, on a random basis, until such time as an Alternative Service Delivery Mechanism (ASDM) can be put in place.
Rationale
The majority of stakeholders indicated that the inspection of the net quantity of commodities was a program to be maintained by Measurement Canada and that the buyers and sellers should be held responsible to ensure the amounts are correct.
Stakeholders indicated that they ensured net quality accuracy based on their quality assurance or quality control systems.
Key Considerations
- The majority of stakeholders indicated they were willing to look at alternative service delivery for this work and indicated that a program that included a quality assurance or quality control system in place and have the devices that are used for measuring products calibrated regularly.
- Changes to legislation will be required to introduce requirements for the implementing a ASDM for commodity inspection of mining devices in Canada.
Implementation
Priority: Low
Time line:
Short Term (1 to 2 years) – Measurement Canada can continue to perform random commodity inspections.
Medium Term (2 to 5 years) – Measurement Canada to implement the necessary legislative reform to allow for an ASDM for commodity inspection work in the mining sector.
Responsibility Centre:
ISD to investigate possible ASDMs for net quantity inspections.
3.5 Legislation
Background
Measurement Canada
Under Section 91, subject 17, of the Constitution Act of Canada , the exclusive legislative authority of the Parliament of Canada extends to all matters coming within the subject of Weights and Measures.
Current
The Weights and Measures Act and Regulations currently requires mining devices to be type approved and initially inspected before being used in trade. There are also limits of error and inspection procedures established for mining devices.
Canada is a participating member of the International Organization of Legal Metrology (OIML). This organization develops and maintains international standards for a multitude of weighing and measuring devices. OIML has developed a recommended standard R-76-1). Similarly, the United States model laws are set out in NIST Handbook 44 and Handbook 133. These requirements are often adopted by individual states as mandatory requirements for their respective State.
Recommendations
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada retain overall responsibility for mining trade device legislation as provided in the Weights and Measures Act and Regulations.
- Measurement Canada’s standards affecting mining devices remain uniform for all provinces and territories of Canada.
- Measurement Canada work with the mining industry in an effort to harmonize requirements with international standards, where possible.
Key Considerations
- Some stakeholders suggested that Measurement Canada requirements take into consideration the relatively low cost minerals in determining mining device limits of error.
- Measurement Canada will have to ensure all stakeholders in the mining industry are made aware of any new regulatory requirements for mining devices in Canada.
Rationale
The majority of stakeholders who participated in the MTSR process agree that Measurement Canada should establish mandatory periodic inspections for scales type devices used in the mining industry in Canada. The adoption of this requirement should ensure accurate trade measurement in the mining trade sector.
Implementation
Priority: High
Time line:
Long Term (2 to 5 years) – Measurement Canada implement the necessary legislative reform for the use of mandatory periodic inspection of mining devices in Canada.
Responsibility Centre:
PDD for regulatory changes to require mandatory periodic inspections and to exempt ship survey and refined gold, silver and diamonds from these requirements.
3.6 Physical Standards
Background
Measurement Canada
Any test standard used by a Measurement Canada inspector or Measurement Canada Authorized Service Provider to certify devices under the Weights and Measures Act and Regulations or Electricity and Gas Inspection Act and Regulations must be calibrated and certified by Measurement Canada. This requirement applies to test standards owned by Authorized Service Providers and by Measurement Canada.
Current
There are mandatory calibration and certification requirements for physical standards used by Measurement Canada and Authorized Service Providers.
Recommendations
A consensus of stakeholders and the MTSR team recommend that:
- Users be responsible to ensure physical standards are calibrated and have a valid certificate of calibration. Measurement Canada should retain overall responsibility to monitor and perform enforcement actions, when necessary.
- Measurement Canada exempt linear (static) measurement test standards used in the mining trade sector.
- Measurement Canada extend its alternative service delivery programs to include the calibration of standards used in the mining sector, but to remain available to perform this work, if required.
- Measurement Canada exempt physical standards in the refined gold, silver and diamond industry from its regulations.
Key Considerations
- At this time, few companies have expressed interest in certifying test standards or test equipment. Measurement Canada continues to be the primary source of test standard and test equipment certifications.
- Measurement Canada should consider recognizing physical standards which have been certified with standards traceable to the National Institute for Science and Technology (NIST) in the United States. Similar consideration should be given to physical standards certified in other jurisdictions, if they have been certified with standards that are traceable to the Bureau International des Poids et Mesures (BIPM) and they have procedures in place to ensure proper certifications.
Rationale
Physical measurement standards that are reliable, accurate and traceable to National Research Council (NRC) or international (NIST) or (BIPM) standards are the basis for a sound metrological control program. Any significant uncertainties or calibration errors impact directly on trade measuring device accuracy. Even small inaccuracies may result in significant financial loss for the participants in the trade transaction. It is vital that rules for measurement standards are established and applied.
In order to have a uniform, reliable, national measurement system, uncertainties of standards must be established. Standards must be maintained and used in accordance with sound procedures and must be suitable for the intended use. Stakeholders feel that Measurement Canada is in the best position, with the necessary authority, to accomplish this goal for the mining trade sector.
Laboratories with acceptable procedures and reference standards that have an unbroken traceability to recognized national standards may provide the same level of reliability and accuracy as the calibration done by Measurement Canada.
Implementation
Priority: Medium
Time line:
Short term (1 to 2 years) Measurement Canada extend its alternative service delivery programs to include the calibration of standards.
Long Term (2 to 5 years) – Measurement Canada to exempt linear (static) measurement test standards used in the mining trade sector and physical standards in the refined gold, silver and diamond industry and change the legislation to allow for traceability to other national and international standards.
Responsibility Centre:
- PDD to change the legislation to exempt linear (static) measurement test standards used in the ship survey process and physical standards used in the refined gold, silver and diamond industry and change the legislation to allow for traceability to international standards.
- ISD to extend its alternative service delivery programs to include the calibration of standards.
3.7 Complaints
Background
Buyers or sellers of goods or services who suspect they have received inaccurate measurement and who have been unable to resolve their concern with the other party to the transaction may contact the nearest Measurement Canada office and request that their complaint be investigated. Complaint investigations may include:
- investigation;
- device inspection;
- net quantity verification of pre-packaged goods;
- test purchases or test sales of a product or service;
- trader education.
Current
Measurement Canada customarily investigates mining device complaints. Measurement Canada has received one mining device complaint in the past 5 years.
Recommendations
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada continue to provide complaint inspection services for this sector, but only after the two parties have had the opportunity to resolve the issue first.
- Measurement Canada’s role to investigate complaints about device accuracy be better known amongst sellers and purchasers of mining products.
- Measurement Canada’s legislation should allow for the full disclosure of complaint inspection information to the two parties of the transaction.
Key Considerations
- Stakeholders feel that Measurement Canada should consider the low cost of mining products when they establish limits of error for the inspection of a mining devices that are subject of a customer complaint.
Rationale
Measurement Canada’s mandate and strategic direction is to remain involved in the investigation of complaints that cannot be resolved by the parties to a trade transaction. As a minimum, Measurement Canada will provide technical advice and /or inspection services that could lead to a resolution. As the third party arbiter of any mining device complaint, Measurement Canada should be viewed as being totally independent by all parties to the trade transaction.
This recommended level of Measurement Canada intervention in mining device complaints should give the disputing parties a neutral investigative ruling which can be used in cases where measurement disagreements cannot be resolved by current means.
Implementation
Priority: High
Time line:
Medium Term (2 to 3 years) – Measurement Canada to develop the necessary requirements in regards to the disclosure of complaint inspection information to both parties.
Responsibility Centre:
- PDD to make regulatory changes to allow for complaint inspection disclosure.
- Marketing and Business Operations Directorate (MBO) to implement a communication strategy to educate mining stakeholders about Measurement Canada’s role in complaint investigations.
3.8 Marketplace Monitoring
Background
Measurement Canada's strategic direction is to monitor compliance within the marketplace to ensure that established levels of intervention are adequate to maintain stakeholder confidence. To facilitate this, Measurement Canada will need to establish performance indicators to measure sector compliance. Historically, performance indicators were mainly compliance rates for device and commodity inspections. These rates were determined from results obtained by Measurement Canada inspectors during initial inspections and periodic inspection cycles. Due to resource limitations, Measurement Canada has been inspecting fewer and fewer mining devices over the past few years.Measurement Canada may choose to conduct future follow-up sector reviews of the mining trade sector should marketplace monitoring raise major concerns. The purpose of these reviews would be to ensure that any implemented programs continue to meet the needs of all stakeholders. These follow-up reviews would be similar to the one presently being conducted but probably much narrower in scope and of far shorter duration. The follow-up review would be in addition to ongoing monitoring.
Recommendations
A consensus of stakeholders and the MTSR team recommend that:
- Measurement Canada ensure that all stages of any future Mining Trade Sector Reviews provide an opportunity for the participation of vulnerable parties.
- Measurement Canada collect compliance data on mining devices and commodities and disseminate this information on a yearly basis to a registry of interested mining stakeholders, in aggregate form.
Key Considerations
- Measurement Canada will establish key indicators to be used in the ongoing marketplace monitoring of the mining trade sector. These key indicators will be developed during the implementation stage of the MTSR and stakeholders will be consulted.
- Concerns were expressed by stakeholders regarding whether Measurement Canada would have the resources to conduct sufficient monitoring.
Rationale
Measurement Canada needs to have mechanisms in place to ensure that the programs resulting from the trade sector review are working effectively and to determine if the needs of the stakeholders and Measurement Canada are being met.
It is important for Measurement Canada to keep stakeholders aware of the state of trade measurement in the mining trade sector and keep them advised of the effectiveness of the implemented programs. Measurement Canada must be careful not to publish information that could damage the reputation of mining stakeholders.
Implementation
Priority: Medium
Time line:
Medium Term (2 to 3 years) to develop the necessary policies and procedures needed for monitoring the mining trade sector marketplace.
Responsibility Centre:
- PDD to collect compliance data and disseminate the information to mining stakeholders.
- ISD to ensure future mining sector reviews provide the opportunity for the participation of vulnerable parties.
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