Stalled mining projects come at financial cost, says report.

AuthorKelly, Lindsay
PositionMINING

A new report from the Northern Policy Institute (NPI) is a mouthful--The Mining Industry in Northwestern Ontario: An Analysis of Recent Developments and a Strategy for Success. But it echoes what industry stakeholders have been saying for years: Ontario is losing revenue and jobs as promising mining projects go undeveloped.

The report, authored by Karl Skogstad and Ayman Alahmar, focuses on nine projects in northwestern Ontario that, for varying reasons, remain stalled at different stages of development.

Skogstad acknowledged the cycle is currently in a downturn, but said that problems can be addressed now so the province is ready when the cycle turns around.

"(The downturn is) unfortunate for the industry, but we know that the prices will go up again," said Skogstad, a postdoctoral fellow in economics at Lakehead University in Thunder Bay. "So, it's not that these projects aren't viable ever; it's just that they're not viable now."

Skogstad said now is actually a wise time to make an investment, since interest rates are low and it's a good time to borrow money to invest in infrastructure, especially since the mineral resource isn't going anywhere.

In the case of the Ring of Fire, particularly, Skogstad suggested the federal and provincial governments invest in energy and transportation infrastructure now when there can be a benefit to nearby First Nation communities.

"It's not that the road's just going to a single future resource development," he said. "It's that we have an opportunity to do some nation-building here to start improving the economic conditions in those communities, and as a positive spinoff of that, we're ready to go when resource prices cycle high." Another of the report's observations is that it just takes too long for a mine's development, from start to finish.

Environmental assessments can take years to complete, and stakeholders frequently request more time to become acquainted with the details of a project.

Skogstad believes environmental protection and community engagement are necessary for development, but said projects could start taking even longer to get online if the process isn't sped up.

He suggests hiring consultants to help educate First Nation communities on the mining projects so they feel properly informed.

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