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.
New mines and mine expansions are reinforcing the mineral sector’s role in the foundation of Ontario’s economy. Ontario’s economy is going through the pains of transformation as it moves from a manufacturing base to a service and knowledge base. However, as when there was an earlier shift from agriculture to manufacturing, mining was there to cushion the adjustment and help society adapt.
Currently, mining companies are proceeding with major growth plans in many parts of the province. If we look back two years and forward about three, an incomplete list will show that mining is investing more than $8.5 billion in capital expenditures – this is in addition to operating expenditures and exploration activities. We are not sure other private sectors of the economy can match this level of recent activity on the capital spending front.
De Beers Canada made capital expenditures of $1 billion to bring the Victor Mine, near Attawapiskat, Ontario’s first diamond mine, into production in 2008. The Victor Mine is expected to have a positive impact on Ontario’s Gross Domestic Product (GDP) of $6.7 billion and a $4.2 billion GDP contribution to the economy of Northern Ontario. Xstrata Nickel invested $927 million to bring its Nickel Rim South mine in Sudbury into operation in 2009.