Study Confirms that Mining is a Gem in Ontario´s Economy

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.

The mining industry in Ontario is a cornerstone of the provincial economy providing benefits that far outweigh its relative size, according to a study released yesterday.  “Ontario Mining: A Made-in-Ontario Success Story” was presented by its author tax specialist Greg New at Queen´s Park during the Ontario Mining Association´s Meet the Miners Day.  This report on mining´s impact and contributions to the economy and society of Ontario is produced every other year for the Ontario Mining Association with the assistance and cooperation of the Ministry of Northern Development and Mines.  The previous study was titled “Ontario Mining: A High-Tech Productivity Powerhouse.”

“Overall, the Ontario mining industry matters to Ontario for its direct $10.7 billion in mineral production and related tax revenues, and jobs this production sustains, but also for the fact that it is a largely made-in-Ontario industry that contributes disproportionately to both the provincial tax base and the province´s international balance of trade,” said the report.   This study aims to provide answers, with supporting statistics, to the who, what, where, when, how and why questions often asked about the industry.

Highlights of the study would include: The total value of mineral production in Ontario in 2007 was $10.7 billion; Mining provides Ontario with a trade surplus of about $3.3 billion annually; The productivity of the industry continues to improve – each mining industry employee accounts for $660,000 of output annually; Jobs in the mining industry continue to be among the highest paid in Ontario; Total capital investment in Ontario mining, including research, exploration, construction and equipment, reached $2.7 billion in 2007, representing an increase of 58% from 2004;

Also, Ontario continues to attract the largest share of mineral exploration expenditures in Canada — $572 million in 2007 out a national total of $$2.5 billion; The value of goods and services procured within 80 kilometres of mine sites in Ontario was more than $1.4 billion in 2007, up from $836 million in 2005; The mining industry in Ontario contributes more than $600 million to governmental tax revenues and the industry’s $1.2 billion payroll results in a further $350 million in personal income tax payments.

Mining is a relatively small industry in Ontario.  Mining is the smallest sector that Statistics Canada tracks and keeps separate economic and employment data.  The industry has a major impact on regional development in the province and in Canada and it is the largest private sector employer of Aboriginals.  While mining represents 1.8% of Ontario´s GDP (gross domestic product), it provides 3.4% of Ontario´s tax revenue from business. 

Ontario is the largest producer of most metallic and non-metallic minerals in Canada, producing 26% of the nation´s total minerals by value.  The industry´s faith in the geological potential of Ontario bodes well for the future of the mining industry in the province.  The full version of “Ontario Mining: A Made-in-Ontario Success Story” can be found on the OMA website www.oma.on.ca.  Click on the Economic panel of the home page and you will find it. 
 

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