This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.
Just one new gold mine in Ontario could provide more than 2,200 direct and indirect jobs and pay more than $102 million in tax revenue for all levels of government annually, according to a new study “An Au-thentic Opportunity: The Economic Impacts of a New Gold Mine in Ontario.” University of Toronto economists Peter Dungan and Steve Murphy presented the key findings of their report, which was completed for the Ontario Mining Association with assistance from the Ministry of Northern Development and Mines, today.
“With the increased value and relative importance of gold mining production in the province in recent years, as well as the number of announced projects currently the pipeline, it was decided that the impact of a gold mine would be the subject of our analysis,” said Mr. Dungan. “This study also recognizes the scope for the possible benefits that can be realized by Aboriginal groups.”
The four-pronged study demonstrates the positive economic impacts on an annual basis for both an underground and an open pit gold mine and for both types of operations during an estimated three-year construction phase of a new mine and the production phase of these mines, which could last for decades. The economists have used broad sources of public data, mining company disclosure documents and economic models from the Input-Output Division at Statistics Canada.
For example, an underground gold mine with about $300 million in sales annually with 620 direct employees, would create 894 jobs from mine supply companies and a further 690 induced jobs largely in the retail and service sector. Continue Reading →