OMA NEWS RELEASE: Mining builds government coffers

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.

Personal income tax payments by mining industry employees across Canada increased 15% to $2.3 billion in 2012 from about $2 billion in 2011. The growth is related to the industry’s role as a major, high-paying employer and the rise in mineral sector employment by about 6,700 jobs, according to the recently released Mining Association of Canada (MAC) study, “Payments to Governments by the Canadian Mineral Sector 2003 – 2012,” prepared by the ENTRANS Policy Research Group.

The study examines royalties paid by mineral producers, corporate income taxes paid by mining companies and personal income taxes paid by direct industry employees. ENTRANS estimates that during the past 10 years, the mining sector made payments of more than $71 billion to Ottawa and provincial governments.

“This impressive amount of more than $70 billion over the past decade also underscores the importance of mining in Canada as both a major employer across the country and significant contributor to the Canadian economy,” said MAC President Pierre Gratton. “The royalties, taxes and other payments made to governments by the industry ultimately go towards supporting critical government services like health care, education and the building of infrastructure.”

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Province confirms, but mum, on special rate for Ring – by Darren MacDonald (Sudbury Northern Life – December 09, 2013)

http://www.northernlife.ca/

Energy minister says $60B chromite project exempt from new rate hike

Ontario Energy Minister Bob Chiarelli confirmed in a conference call with reporters last week what many people had long assumed: the province has offered Cliffs Natural Resources a special hydro rate for its Ring of Fire project.

Chiarelli was promoting the province’s long-term energy plan, entitled Achieving Balance, which forecasts energy demand in Ontario for the next 20 years. Steep hikes are forecast for the first three years of the plan – 33 per cent – but he said the increases are much lower than they would have been if the province hadn’t cancelled proposed gas plants and plans to build new nuclear plants.

He also touted the end of “dirty” coal plants, which he said cost the province $4.4 billion in added health-care costs, as well as polluting the environment.

But the rate increases announced as part of the plan mean Ontarians will pay about $40 a month more for energy by 2016. When asked about the implications for Cliffs, Chiarelli said a separate arrangement had already been struck.

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Stephen Harper to meet Kathleen Wynne to talk Ring of Fire – by Susana Mas (CBC News – December 4, 2013)

http://www.cbc.ca/news/politics

Prime Minister Stephen Harper has agreed to meet Ontario Premier Kathleen Wynne on Parliament Hill Thursday afternoon to discuss Ontario’s Ring of Fire, a mining development project worth an estimated $60 billion.

Wynne is hoping to break the current impasse and convince the prime minister to match the costs of developing the mineral rich region, 500 kilometres north of Thunder Bay, in northern Ontario.

The Ontario government told CBC News last week it was surprised to hear the prime minister dismiss the development in the Ring of Fire as a provincial issue, given that repeated calls for the federal government to play a role in the project had gone unanswered in recent weeks. Harper recently said “this is a project that is primarily under provincial jurisdiction because ultimately resources belong to the provinces and resource development is a provincial responsibility.”

Rich in chromite, nickel and gold, the Ring of Fire is considered to be mining jackpot for the province, but Wynne is making the case that the federal government has a responsibility in the development and funding of the infrastructure required.

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Timmins, Saskatchewan colleges sign agreement – by Staff (Northern Ontario Business – December 3, 2013)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Northern College in Timmins and Northlands College in Saskatchewan have signed an agreement to train students through the mining engineering technician program at the Haileybury School of Mines.

The new agreement is built upon an established relationship between the two colleges. Northlands has delivered the program in the past, offering enrolment once every two years. The new agreement, which will be valid for seven years, will see six consecutive intakes of first-year students.

Earlier this year, an agreement was established with Confederation College to allow graduates of Confederation’s mining techniques program to take the second year of the mining engineering technician program at Confederation.

“The fact that Haileybury School of Mines programming is being delivered by multiple colleges in both Ontario and Saskatchewan is a testament to the quality of our mining programs,” said Fred Gibbons, president of Northern College, in a news release.

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Too Soon for Timeline on Ring of Fire, Negotiator Says – by Gerrit De Vynck (Bloomberg News – December 3, 2013)

http://www.bloomberg.com/

As mining companies wait on the sidelines, aboriginal groups and the Ontario government haven’t even set guidelines for negotiations over how to develop and share the mineral-rich Ring of Fire area, a lawyer representing the indigenous groups said.

Until there’s more certainty over what will be discussed, such as environmental concerns, infrastructure and resource sharing, it’s too soon to say when companies including Cliffs Natural Resources Inc. (CLF) and Noront Resources Ltd. (NOT) will be able to mine the Canadian region, said Bob Rae, 65, a former federal Liberal party leader.

“I’m very reluctant to predict the timing,” Rae, who represents the nine indigenous groups in the Matawa Tribal Council, said last week in an interview. “Aboriginal communities historically, and governments and companies, often see the issue of time from a different perspective.”

Aboriginal communities, also known as First Nations in Canada, are negotiating with the Ontario government over how to develop an area 1,000 kilometers (622 miles) northwest of Toronto that the province said may contain C$60 billion ($56 billion) of minerals.

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NEWS RELEASE: OMA member praised by provincial economic think tank (December 3, 2013)

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.

Ontario Mining Association member Noront Resources was singled out as a bright spot on the future economic development horizon by the Institute for Competitiveness & Prosperity. The organization’s recently released twelfth annual report “Course Correction: Charting a new road map for Ontario” offers several suggestions to accelerate stagnant growth.

The report notes that “Ontario’s GDP ranked a dismal 14th out 16 North American peers (similar jurisdictions in Canada and the United States). This ranking is unchanged from when the Task Force first began measuring Ontario’s economic progress more than a decade ago.”

“The Task Force urges the province to follow our road map to close the prosperity gap,” said Roger Martin, Chairman of the Task Force on Competitiveness, Productivity and Economic Progress. “Without improvements to productivity and investments in future prosperity, the province will continue to fall behind its peers.”

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KWG Resources Inc. – CEO Interview – Round 1 In The Ring of Fire (December 2, 2013)

http://www.kwgresources.com/ Frank Smeenk, President and CEO of KWG Resources goes head to head with George Tsiolis, Founder of AGORACOM to discuss potential solutions to challenging development obstacles in the Ring Of Fire. KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite where …

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Ring of Fire: Feds, province need to work together on Ring: Gravelle – by Carol Mulligan (Sudbury Star – December 2, 2013)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Nickel Belt MP Claude Gravelle wants the federal and provincial governments to stop playing the blame game and get on with the serious work of developing the Ring of Fire chromite deposits.

The New Democrat mining critic will introduce a motion at today’s meeting of the all-party Natural Resources Committee to invite representatives of the Ontario government to attend the committee and speak about its concerns regarding the Ring of Fire.

He wants provincial officials to outline exactly what it is they want from the federal government to help move the $60-billion chromite project forward. Cliffs Natural Resources, one of the biggest players in the Ring of Fire, announced Nov. 20 that it was indefinitely suspending work on its chromite project.

It has invested $500 million planning and developing a chromite mine at McFaulds Lake, about 500 kilometres northeast of Thunder Bay, as well as its plans for a ferrochrome processing plant near Capreol, in Gravelle’s riding.

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Ontario’s Ring of Failure: Our provincial leadership is badly stricken by analysis paralysis – by Gary Laine (Thunder Bay Chronicle-Journal – December 2, 2013)

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

Our governing Liberals have got it bad and that ain’t good. I’m talking about the debilitating case of analysis paralysis infecting our provincial leadership that has turned the much-heralded Ring of Fire into a Ring of Failure.

The online encyclopedia Wikipedia defines analysis paralysis as “the state of over-analyzing (or over-thinking) a situation so that a decision or action is never taken, in effect paralyzing the outcome. A decision can be treated as over-complicated, with too many detailed options, so that a choice is never made, rather than try something and change it if a major problem arises. A person might be seeking the optimal or ‘perfect’ solution upfront, and fear making any decision which could lead to erroneous results.”

Clearly, Kathleen Wynne and Michael Gravelle, who both repeatedly hide behind the phrase “we want to make sure we do things right,” are victims of this progress-preventing condition.

Mineral resources in the Ring of Fire (RoF) were first discovered in 2002. The Liberals took power in 2003. Ten years have gone by, in other words, and still no road and still no development.

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Neutral ground for mine talks – by Pete Hollings and Peggy Smith (Thunder Bay Chronicle-Journal – December 2, 2013)

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

Pete Hollings and Peggy Smith are with the Centre of Excellence for Sustainable Mining and Exploration at Lakehead University.

Cliffs pulls out of Ring of Fire. First Nations demand full environmental assessment. Communities struggle to build capacity to participate in mining development. Where is provincial support for infrastructure to open new mining sites?

These headlines demonstrate the challenges in pursuing sustainable mining development in Northern Ontario. The competing plans of different companies, a need to address the concerns of First Nations and Metis communities, and a lack of clear government policy all bedevil mining projects in the region.

Lakehead University’s Centre of Excellence for Sustainable Mining and Exploration (CESME) was established to help address these issues and act as an honest broker among all the parties involved in the future development of Northern Ontario’s rich mineral resources.

On Dec. 5-6 CESME will be hosting representatives from all the major players at a conference to discuss The Role of Government Policy in Sustainable Mining Development.

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Focus Ontario: Global News – November 29 It Burns [Ring of Fire] (November 30, 2013)

http://globalnews.ca/toronto/ On this week’s Focus Ontario, we go down, down, down in a burning ring of fire. A huge mineral deposit in Northern Ontario could mean billions for the province — so why have plans to mine it fallen through?? Note, the program has a brief segment on other news issues at roughly the five …

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Stop petty squabbles and help Ontario’s Ring of Fire succeed (Toronto Star Editorial – November 30, 2013)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Ontario’s Ring of Fire mining development is worth an estimated $60 billion but it’s being delayed by bad political decisions.

Bob Rae is a man of many hats. He’s been the NDP premier of Ontario, the interim federal Liberal leader and is currently the chief negotiator and counsel for the Matawa First Nations.

Now, at least temporarily, he’s playing the role of rational adult, calling on Premier Kathleen Wynne and Prime Minister Stephen Harper to stop their petty squabble over the development of northern Ontario’s massively lucrative Ring of Fire, 500 kilometres north of Thunder Bay.

As Rae told Toronto’s Empire Club last week: “It is, to me, deeply troubling that those two governments still can’t agree on who’s responsible for what. This is challenging for the First Nations. It’s also challenging for companies that are trying to do business. We need to create some certainty.” Amen to that.

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North Western Ontario [and Ring of Fire] prime for Manitoba power – by Steven Fletcher (Thunder Bay Chronicle-Journal – November 30, 2013)

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

Steven Fletcher is the Conservative MP for Charleswood-St. James-Assiniboia-Headingley and helped develop the Building Canada Fund.

Manitoba Hydro needs new markets for its electric power to help finance its current and future operations, and Northern Ontario would benefit from low-cost power to develop its mining resources. There is potential for mutual benefit if these two provinces worked to meet each other’s needs.

Northwestern Ontario is undergoing significant growth in mining exploration and development. The area is rich in deposits of chromium, palladium, nickel, gold and other base metals. Much of it is in a mineral-rich area known as the Ring of Fire, which is located northeast of Thunder Bay. It has been conservatively estimated this development could have an economic impact of up to $120 billion. The impact of the Ring of Fire on Ontario’s economy could be similar to the impact the Alberta economy has experienced due to the oil sands.

However, the mining development is far from Hydro One’s main electrical system and there are no transmission lines to that area. In addition, the cost of power throughout the province’s Northwest is so high, it is said the cost is a disincentive for mining developments which utilize large amounts of electricity.

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Nickel Belt MP proposes “marriage counseling” for Ring of Fire – by Ian Ross (Northern Ontario Business – November 29, 2013)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

Nickel Belt (Sudbury) MP Claude Gravelle thinks it’s time to open a new channel of dialogue between Ottawa and Queen’s Park on the Ring of Fire. The Ontario government’s pleas for the federal government to buy into mining development in the James Bay lowlands appear to have fallen on deaf ears.

Gravelle wants to stop the political rhetoric and dive into the details as to what exactly the Wynne government wants.

He’s bringing forward a motion before the federal standing committee on natural resources to call the Government of Ontario as a witness to better understand what their needs are to move the stalled multi-billion dollar chromite and base metal project forward.

“I want to try and understand their specific policy concerns and we can determine what federal policy actions we can take,” said Gravelle, a member of the committee which meets Dec. 2.

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Dangerous, dirty legacy — arsenic found in [Sudbury’s] Long Lake – by Mary Katherine Keown (Sudbury Star – November 29, 2013)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

A study ordered by the Ministry of Northern Development and Mines found elevated levels of arsenic in several areas of Long Lake. The ministry, which contracted Colorado-based consulting firm CH2M Hill. The firm conducted field work in July and August. The study was released this week.

A gold mine operated 1.3 km south of the southwestern end of Long Lake from 1909 to 1939. In 1912, it was Ontario’s largest gold-producing mine, but it left behind a dirty, and dangerous, environmental legacy, including three tailings areas.

A packed house of mostly Long Lake residents and cottagers attended a presentation this week at the Holiday Inn to hear the results of the study. Researchers found the concentration of arsenic in the lake’s surface water exceeded Ontario’s drinking water quality standards of 25 parts per billion (ppb).

“It’s a very serious problem and we’re glad to see the progress,” Stephen Butcher, chair of the Long Lake Stewardship Committee, said. “The stewardship initially thought removing the tailings would be the best idea, but after watching last night’s presentation, it’s obvious nobody else wants it in their backyard, either.”

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