Ontario Mining Act Public Consultations are Flawed – by Don McKinnon

The world-class Hemlo deposit was the major gold discovery in Canada during the 1980s. The three individuals who were responsible for discovering one of the country’s richest gold camps were Don McKinnon, John Larche and David Bell. Don McKinnon is still an active Timmins-based prospector.

It was a farce.

That is the only way to describe the so-called public consultation session on changes to the Ontario Mining Act (OMA) held in Timmins Aug.11.

The 70 people who turned out were told they could not:

1-ask questions;

2-make any statements to the room;

3-have any other material other than a government handout; and

4-question Northern Development and Mines Minister Michael Gravelle as he broke his promise to attend.

Any changes to the OMA will have an important bearing, either a negative or positive impact, on a $10.7 billion Ontario industry.

Premier Dalton McGuinty wants “focused discussions” with municipalities, the mineral industry, Aboriginals, prospectors and the public. He certainly went about it in a strange way.

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Honourable Michael Gravelle – Ontario Minister of Northern Development and Mines – Welcome Speech at Public Consultation – Toronto, Ontario

Honourable Michael Gravelle - Ontario Minister of Northern Development and MinesMODERNIZING ONTARIO’S MINING ACT

September 8, 2008

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Good evening, ladies and gentlemen and thank you.

Thank you for taking the time to participate in this consultation.

And thank you for your interest in helping my ministry undertake this next important, indeed historic stage in our government’s commitment to modernize Ontario’s Mining Act.

Historic because together we have the opportunity to ensure this legislation promotes sustainable development that benefits all Ontarians.

As Canada’s largest producer of minerals, Ontario accounted for 28 per cent of the national total in 2007, at an approximate value of $10.7 billion. 

The fact is our mineral sector is a powerhouse that employs tens of thousands of people and pumps millions into the economy.

Our government understands this and we’re proud to stand shoulder to shoulder with the world’s leading mining jurisdictions.
   
We also believe that mining holds tremendous potential, especially for the province’s northern, rural and Aboriginal communities. 

We want the industry to be competitive, vibrant and prosperous.

But we want to ensure this potential and this prosperity is developed in a way that respects communities.

In short, our task is to find a balance – and this is where we need your help.

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Modernizing Ontario’s Mining Act (6 of 6)

Ontario, the largest mineral producer in Canada, is modernizing its Mining Act. These six postings are from a provincial policy document – titled “Modernizing Ontario’s Mining Act – Finding A Balance” produced by the Ministry of Northern Development and Mines.

Elements of the Review

The government believes five critical policy issues must be addressed in this review of Ontario’s Mining Act:

1. Mineral tenure system and security of investment

Potential adjustments to the mineral tenure system, including free entry, to assure investment security while taking into account other interests, including Aboriginal community concerns and private landowners’ issues.

2. Aboriginal rights and interests related to mining development

Potential approaches to consultation and accommodation related to the broad range of mineral sector activities as they affect Aboriginal and treaty rights.

3. Regulatory processes for exploration activities on Crown Land

Potential approaches to regulating exploration activities, including consultation and accommodation with Aboriginal communities.

4. Land use planning in Ontario’s Far North

Potential approaches to the requirement that new mines in the Far North would need community land use plans supported by local First Nations.

5. Private rights and interests relating to mining development (mineral rights/surface rights issues)

Potential approaches to address mineral rights and surface rights issues.

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Modernizing Ontario’s Mining Act (5 of 6)

Ontario, the largest mineral producer in Canada, is modernizing its Mining Act. These six postings are from a provincial policy document – titled “Modernizing Ontario’s Mining Act – Finding A Balance” produced by the Ministry of Northern Development and Mines.

Ontario’s Mining Act

The purpose of the Mining Act, which applies throughout Ontario, is “to encourage prospecting, staking and exploration for the development of mineral resources and to minimize the impact of these activities on public health and safety and the environment through rehabilitation of mining lands in Ontario.”

Despite its name, the Mining Act has limited application in the day-to-day activities of operating mines. Generally, it focuses on activities that occur before and after mineral production. These activities include the acquisition and maintenance of mineral rights – claim staking, prospecting, mineral exploration and mine development related to mining land tenure – and the safe, environmentally sustainable closure of mining operations.

The Mining Act does not, however, regulate the following matters, which are covered by other legislation:

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Modernizing Ontario’s Mining Act (4 of 6)

Ontario, the largest mineral producer in Canada, is modernizing its Mining Act. These six postings are from a provincial policy document – titled “Modernizing Ontario’s Mining Act – Finding A Balance” produced by the Ministry of Northern Development and Mines.

What We Have Learned So Far

Consultation with Aboriginal Communities

In February 2007, the Ministry of Northern Development and Mines released a discussion paper, Toward Developing an Aboriginal Consultation Approach for Mineral Sector Activities, and initiated a collaborative engagement process with the goal of developing an improved Aboriginal consultation approach.

The ministry held community-based discussions across Ontario, met with several political territorial organizations and tribal councils, as well as the Métis Nation of Ontario, and held several facilitated workshops. Through these discussions, we learned that Aboriginal communities have a variety of views on mineral sector activities, and when and how they want to be consulted.

Aboriginal communities told us:
• They want to be consulted and accommodated at all stages of the mining sequence, including preliminary exploration
• They desire meaningful participation in land use decision making and economic development
• They desire a measure of control over development within their traditional territories, including proposed activities before exploration work is undertaken
• They require assistance to build capacity that would allow them to participate fully.

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Modernizing Ontario’s Mining Act (3 of 6)

Ontario, the largest mineral producer in Canada, is modernizing its Mining Act. These six postings are from a provincial policy document – titled “Modernizing Ontario’s Mining Act – Finding A Balance” produced by the Ministry of Northern Development and Mines.

Purpose of the Review

Blueprint for Development

Released in March 2006, Ontario’s Mineral Development Strategy serves as a blueprint for the future of mineral development in Ontario. It commits Ontario to sound management, effective stewardship and responsible development of the province’s mineral resources.

Ontario is modernizing its Mining Act to ensure that this legislation promotes fair and balanced development that benefits all Ontarians in a sustainable, socially appropriate way, while supporting a vibrant, safe, environmentally sound mining industry.

Modernization will bring the Mining Act into harmony with the values of today’s society while maintaining a framework that supports the mineral industry’s contribution to Ontario’s economy. This process supports Premier Dalton McGuinty’s July 14, 2008 Far North Planning announcement, including his promise that the government will modernize the way mining companies stake and explore their claims to be more respectful of private land owners and Aboriginal communities.

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Modernizing Ontario’s Mining Act (2 of 6)

Ontario, the largest mineral producer in Canada, is modernizing its Mining Act. These six postings are from a provincial policy document – titled “Modernizing Ontario’s Mining Act – Finding A Balance” produced by the Ministry of Northern Development and Mines.

Overview of Ontario’s Mining Industry

The mineral sector is the largest private sector employer of Aboriginal workers in Canada.

Ontario is Canada’s largest producer of minerals, accounting for 28 per cent of the national total in 2007, at an approximate value of $10.7 billion. Exploration spending in Ontario has risen fourfold from $120 million in 2002 to $500 million in 2007. In 2008 that figure is expected to exceed $625 million.

Ontario is a leading producer in a number of base and precious metals. The province ranks among the top 10 global producers of platinum, nickel and cobalt and among the top 20 global producers of gold, silver, copper and zinc. Currently, there are 43 producing mines across Ontario: 28 metal mines; 14 major industrial mineral operations and Ontario’s first diamond mine.

The mining sector employs 100,000 Ontarians directly and indirectly. The average weekly earnings of the mining sector are 50 per cent higher than any of Ontario’s other industrial sectors. Mining companies inject approximately $1 billion annually into the Ontario economy and support over 1,000 local businesses.

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Modernizing Ontario’s Mining Act – Minister Michael Gravelle’s Message (1 of 6)

Honourable Michael Gravelle - Ontario Minister of Northern Development and MinesOntario, the largest mineral producer in Canada, is modernizing its Mining Act. The following six postings are from a provincial policy document – titled “Modernizing Ontario’s Mining Act – Finding A Balance” produced by the Ontario Ministry of Northern Development and Mines.

Ontarians share a fundamental value – a deep and profound love for the natural wonders of this province.

The natural world of trees and rocks and water and wildlife has built our economy into one of the strongest in the world. Since earliest times, it has inspired our art and shaped our character as a people. It sustains us and lies at the core of our self-image.

Whether we are urbanites who relish our annual canoe trips with the kids; Cree hunters awaiting the return of the geese to Hanna Bay; lone prospectors plying their craft in the winter wilderness; cottagers enjoying the sunset at the lake; or small-towners sneaking out at lunch to dip a line in a local stream – whoever we are and whatever we do, we all love this place.

In a sense, we Ontarians are all people of the land. It is natural, then, that the land – and the uses we put it to – should spark strong feelings. Sometimes we find ourselves at odds with each other. Occasionally, these differences lead to conflicts.

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Timmins – the Legendary Porcupine – has a Golden Prosperous Future – by Gregory Reynolds

Gregory Reynolds - Timmins ColumnistThe world-wide boom in commodities has seen profits for Canadian mining companies soar and shareholders are loving it.

Buried in the good news is an interesting development that may prove beneficial to mining companies and the communities dependent upon them even after base and precious metal prices hit the bottom of the present cycle.

Flush with profits, mining companies are taking intense and expensive looks at former producers in Ontario’s historic mineral camps. What this is doing in the short term is putting pressure on the exploration sector as companies turn back to Red Lake, Kirkland Lake, Sudbury and Timmins while coping with a shortage of workers.

Still, it is good for the local economies and contains the promise of a bright future if mineable ore can be found in closed workings.

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Mixed Reaction at Ontario Mining Act Consultations – by Bill Bradley

Northern Life, Greater Sudbury’s community newspaper, gave Republic of Mining.com permission to post Bill Bradley’s article. www.northernlife.ca

Reaction was mixed at the provincial Mining Act consultations Wednesday night at the Howard Johnson Hotel on Brady Street. Some prospectors fumed they were not being properly consulted and bolted from the meeting while others stayed to express their concerns.

There is a process now underway to revise the Mining Act arising from promises made during the last provincial election.

“There is going to be new legislation developed this fall from issues arising from the far north protection of the boreal forest initiative by Premier McGuinty announced July 14 to bring in the interests of First Nations,” said Anne-Marie Flanagan with Northern Development and Mines Minister Michael Gravelle’s office.

“But the Mining Act covers the whole province including the rights of private property owners.”

The sessions are the first step in a consultation approach according to a discussion paper entitled Modernizing Ontario’s Mining Act: Finding A Balance that was handed out in the Sudbury session.

To be included in the discussions are the minerals industry, municipalities and other stakeholders, First Nations and Metis leaders, as well as input from First Nations communities across Ontario.

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Miners Need to be Wary of Ontario Premier McGuinty – By John Cumming

John Cumming MSc (Geology) is the editor of the Northern Miner, Canada’s global mining newspaper.  jcumming@northernminer.com

The week ended July 19, the 29th trading week of 2008, kicked off with a surprise announcement by the Ontario government that it would “protect” at least 225,000 sq. km, or roughly half of the province’s boreal forest.

The scope of the proposal is broad. It includes: banning economic activity within at least half the province’s boreal forest; holding meetings across the province with every conceivable stakeholder to come up with new land-use plans; giving local aboriginal communities veto power over proposed economic activities; revamping the way resource businesses are taxed, including more taxes going to local aboriginal communities; and building up bureaucracies to create and implement land-use plans.

The government also restated its intention to rewrite the province’s mining act before 2010, including changing the process for staking and exploration. It starts reviewing the act this August.

Given that you can’t trust anything Premier “I-won’t-cut-your-taxes-but- I-won’t-raise-them-either” McGuinty says, and that his professed environmentalism is driven by pure political expediency, figuring out what this latest proposal means for miners in Ontario is tricky.

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China Demand Keeps Xstrata Business in Sudbury Booming – by Bill Bradley

Northern Life, Greater Sudbury’s community newspaper, gave Republic of Mining.com permission to post Bill Bradley’s article. www.northernlife.ca

Demand for nickel is booming and will continue to do so well into the future, said Mike Romaniuk, vice-president Ontario Operations, Xstrata Nickel. He was a speaker at a luncheon for the Rotary Club earlier this week at the Howard Johnson on Brady Street.

Close to $400 million is expected to be invested in Sudbury operations. In 2007, 300 workers were hired and another 400 are expected to join the company this year, said Romaniuk.

Why the good times?

In China, they are building the equivalent of a Greater Toronto Area city every year, he said.

“I was there three years ago and saw a sign in the dirt saying a new city of 15 million to be built at this site within three years. They did it. Cities like that require a lot of nickel in their infrastructure and consumer products. That’s why we are prospering,” said Romaniuk.

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Half of Northern Ontario Now Off-Limits to Mineral Industry – by Marilyn Scales

Marilyn Scales - Canadian Mining JournalMarilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication.

On July 14, Ontario Premier Dalton McGuinty announced plans to protect at least 225,000 km² of the boreal forest in Northern Ontario. “Protect” will mean permanently removing the declared area from mineral exploration, mining and forestry.

The Northern Boreal forest covers 43% of Ontario’s land mass, an area 1.5 times the size of the Maritime provinces. The forest is home to only 24,000 people in 36 communities. (No mention has been made as to whether or not these people had a say in the decision). The forest supports more than 200 species of animals, including polar bears, wolverines and caribou, some of which are threatened or endangered.

McGuinty is touting the plan as a means of reducing climate change. The government claims that the boreal region absorbs 12.5 million tonnes of carbon dioxide annually from the atmosphere. Therefore, the trees must be protected or global warming will accelerate. By waving the holy grail of global warming, the premier has ensured that every non-governmental environmental group will follow vociferously in his wake.

The decision is a blow to northern communities. Reports in the “Timmins Daily Press” indicate that citizens of that community were not consulted prior to the announcement. The local mayor and mining industry executives interviewed for the article expressed grave concerns that this is disastrous for the provincial economy.

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Northern Ontario’s “Ring of Fire” Mineral Discovery Sets off Staking Rush – Gregory Reynolds

Gregory Reynolds - Timmins Columnist

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

The results of a single diamond drill hole announced in August of 2007 set off a massive staking rush into the muskeg swamps of Northern Ontario’s James Bay Lowlands.Someone, after looking at a satellite picture of the area, came up with a name for it – the Ring of Fire.

The name quickly became a part of Canadian mining lore and today over 100 companies have holdings inside the ring.

It will take several hundred million dollars to determine whether a new Sudbury Basin type base metal mining camp is being born but the promoters’ hype is that it is so.

That original hole was pulled by a junior company that, as did so many other small exploration ventures, survived ups and downs over the years.Still, Noront Resources Ltd. persevered and it appears Lady Luck has finally asked it to the dance.

What is interesting about the Noront discovery, known as the McFaulds Lake area Double Eagle Project, is that the Aug. 28, 2007 announcement merely hinted at a big find.

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Canada’s Federal Government Making a Mess of Aboriginal Land Claims and Mining Issues – Gregory Reynolds

Gregory Reynolds - Timmins ColumnistThere is a belief among mining people that the land disputes making news almost daily are best left to the two parties directly concerned – provincial governments and Aboriginal groups.

The truth is that two of Canada’s primary industries are threatened by the failure to tackle land claims in a meaningful way.

Mining and forestry have remained on the sidelines while negotiations become pension funds for lawyers and job protection insurance for civil servants.

There is a third party that not only should be at every negotiating table but should be actively involved. That is Canada’s federal government.

More and more native bands are saying they do not want trees cut or mineral exploration on their traditional lands until outstanding claims are settled.

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