(Following from Feb/27/2008 City of Greater Sudbury News Release)

In March 2006, the City of Greater Sudbury set up a ten-member Advisory Panel on Municipal Mining Revenues chaired by former Inco vice-president José Blanco. The resulting 64-page report, released in February, 2008, called on Council to, ‘invite the Province of Ontario to enter into negotiations with the city to establish a resource revenue-sharing framework that will ensure a predictable and sustainable revenue stream for the municipality.”

The panel notes that in 1970, major mining companies accounted for about a quarter of local property taxes. By 2005, the mining companies’ share of municipal property tax levies had fallen to just 6.5 per cent.

‘This is a very complex, multi-layered story in which there are no bad guys,” said panel chair José Blanco. Read the rest of this entry »

On behalf of the members of the Advisory Panel on Municipal Mining Revenues, I am pleased to present our report.

The Panel that you and your Council convened to prepare this report includes a diversity of perspectives drawn from the panelists’ experiences in business, politics, community services, labour, education and the mining industry. It has been a privilege to work with these dedicated citizens.

As the work of the Panel progressed, ably supported by the resource team you provided, the diversity of experiences merged into a consensus that a new framework for balancing the costs and the benefits that the mining industry creates within our Municipality is essential. These issues need to be urgently addressed for the City of Greater Sudbury to achieve its potential.

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The Sudbury Basin is arguably the most valuable geologic structure in the world. For more than one hundred years, dozens of mines have operated around the rim of this ancient meteor crater, extracting millions of pounds of nickel, copper and cobalt as well as million of ounces of gold, platinum and palladium.

The sales of these metals have realized tens of billions of dollars in profit for mining companies and billions of dollars in taxes for the Federal and Provincial Governments. The mining activities in the Sudbury Basin have in large measure driven the development of the progressive urban center that is the City of Greater Sudbury.

Local municipal government in the Sudbury area has gradually grown to match the geographic extent of the basin. As dictated by the Ontario government in 1973 and again in 2001, the disparate assembly of communities that had developed around the mine sites has been consolidated into Ontario’s largest municipality, covering a staggering 3,200 square kilometers. Read the rest of this entry »

Last month, we celebrated Mining Week in Greater Sudbury, an annual event designed to promote the importance of the mining and processing industry to the community at large.  This event is useful and appropriate but we need to remind ourselves every week about the role that mining and processing plays in our local economy and the role that our city plays in this vital global industry.

The people of this community can take great pride in the successes of the economic diversification strategies that were launched a quarter century ago.  The dreams of the 1970s and 1980s are now reality and we are a significant government services centre, an award-winning tourism destination, a centre for education and health, and the leading service and retail centre in Northern Ontario.

At the same time, however, our mining, processing and mining supply and services sectors are driving the city’s economy to new heights and creating significant wealth for our province and for Canada as a whole.  As a city, it is critical that we understand and support this vital industry and that we develop strategies to ensure that we remain competitive on a global basis, well into the future.

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