A meeting of the mining minds was held recently in Toronto, with signs of optimism emerging despite a recent industry slump.

The massive mineral wealth and other natural resources in Canada beckon global mining companies, especially from China.

In early March, hundreds of delegates representing mining companies from around the world converged on Toronto to prospect and explore opportunities.

Onetopic was the widespread cuts ranging from exploration and production to operating and capital expenses.

"One of my favorite stories when I talked about mining was the time I was at a China mining conference," said Joe Oliver, Canada's finance minister and former minister of natural resources. "There was pride. They had 3,000 registered guests. Last year, there were 25,000 guests here in PDAC (Prospectors & Developers Association of Canda), thus giving an indication of PDAC's importance and [that of the] mining sector in Canada."

Oliver also announced a one-year extension of the 15 percent mining tax credit for junior mining companies until March 2016.

John Gravelle, a partner in PricewaterhouseCoopers, said that while commodities had continued to struggle last year, some were convinced the current slump in prices reflects the industry's cyclical nature.

"Some skeptics believe the mining 'super cycle' had ended, but we stand by the cyclicality argument," he said.

Despite the unpredictable economic environment and glut of many metals and minerals that have led to a dramatic drop in commodity prices over the past few years, Gravelle said demand would continue, especially for metals.

Jiahua Wang, the vice-chairman of the China Mining Association, insisted that the mining industry is in good shape.

"The mining industry was not really in a 'deep winter freeze' " he said. "Last year, China's mining sector had an overall increase in demand in all types of mines, with 13.8 percent growth in imports during falling prices. But China alone could not absorb all outputs."

China is going through structural economic changes, and its demand for mineral resources is still growing despite a weak global economy. No single major economy can absorb the output from the mining industry alone, Wang said.

George Gao, president of the China Beijing International Mining Exchange, told China Daily that there has been a huge decline in the price of oil, gold and other commodities, and share prices of mining companies are not doing well.

The TSX Venture Index showed a majority of early mining stages had declined 30 percent compared with last year.

"Mining is at interesting point where people figure out what they can and cannot do," Gao said. "There is the issue of availability of capital and whether people want to invest in mining. And, of course, concerns for China's GDP growth and global economy."

"People are not rushing into projects," Gao said, offering advice for Chinese investors to look back at cycles that characterize the industry and learn how countries like Canada and Australia deal with slowdowns.

Robert Kwauk, of the law firm Blake, Cassels and Graydon in Beijing, said fewer companies were looking to invest.

"There isn't much money around allocated to investment in the mining sector," he said. "This is not a priority sector (now)," he told China Daily.

Chinese mining companies look worldwide to invest, including in Central and South America, South Africa, and Central and Southeast Asia, he said.

"Within Canada, there aren't many investments," he said. "We are not that attractive, in terms of Canadian companies with assets outside of Canada through the TSX (Toronto Stock Exchange), home to companies registered in Canada."

Jiqiu Han, president of Yancoal Canada Resources, told China Daily that major potash production would begin next year, producing 2.8 million tons per year. The project is to be completed this year.

According to John Costigan, vice-president for corporate development at Western Potash Corp in Vancouver, the involvement of the China National Offshore Oil Corp (CNOOC), China Blue and Guoxin are a testament to the viability of potash, with Chinese State-owned enterprises having a low risk tolerance.

Western Potash Corp. is building a mine at its Milestone Potash Project in Saskatchewan.

"Building this mine is significant for Saskatchewan as it would add between 1,000 and 1,500 jobs during construction while creating more than 350 full-time well-paying positions, and once commercial full-scale production begins, it will generate hundreds of millions of dollars in royalties and taxes for the Saskatchewan Government," Costigan said.