Mining: a catalyst for a new economy.

• Author: Hodgson, Chris
• Position: OPINION - Industry overview

The recent turbulence in global economic markets hit us hard in Ontario and left many people feeling vulnerable and wondering what we can do to get out of the current slump and make our economy stronger and more resilient in the future. The guiding idea in much of the public discourse has been that we have to build a new economy to maintain our lifestyle and to continue to prosper. The emphasis has been on the 'new', with Premier Dalton McGuinty recently telling reporters, " ... it's hard for folks to come to grips with this, but the fact is our world has changed."

[ILLUSTRATION OMITTED]

Undoubtedly, our world is changing. However, some fundamentals remain the same. To build a strong, innovative and value-added economy, we need a solid base. For geographical and historical reasons, mining has provided us with that base for a very long time. If we are smart about it, it will continue to do so in the Ontario of tomorrow.

Our geography is a blessing, but it also presents challenges. The vast; majority of Ontarians live in the southern urban centres and we some-times forget that Northern Ontario constitutes 87 per cent (802,000 square; kilometres) of the land area in this province. This huge, relatively isolated area holds distinctive advantage, both in its resource wealth and human potential. A successful future-oriented strategy for Ontario needs to foster broad-scale regional development and social capital across the province. To flip around an argument presented by Richard Florida and Roger Martin in their government- commissioned report, Ontario in the Creative Age, we can achieve an eco-homic transformation by supporting and developing highly competitive base industries like mining, which will drive development along the production chain, transforming and improving productivity and wages in service industries and ultimately bolstering highly innovative creative industries throughout the province, enabling a self-reinforcing upward cycle of innovation and smart, equitable growth.

Mining is an important economic contributor, as well as an engine for regional development and value-add generation. Though the number flue- tuates with various commodity price changes, mining in Ontario had revenues of $9.6 billion in 2008. Given that 80 per cent of mineral output is exported to markets in the United States, Europe and Asia, the mining industry contributes immensely to improving Ontario's international balance of trade. The industry provides a...