http://www.cbc.ca/news/canada/sudbury
Northern Ontario’s mineral exploration industry is experiencing trying times. Exploration spending is down $400 million from 2011.
Brian Polk, who has been working in the mining and exploration industry in Timmins for the past 30 years, recently had to take up a day job to support his family. Recent changes to Ontario’s Mining Act have increased the cost and time it takes to do exploration work, he noted.
“It’s hard to get anything done. So, I think a lot of these companies, which are now global in philosophy, are simply just going to places that aren’t as expensive, which could be as close as Manitoba or Quebec.” Polk added the downswing in the exploration industry is hurting the economy in northeastern Ontario.
“A lot of the old-timers — I guess I’m one of them — say now that this is the worst they’ve ever seen it and I believe it.” Sudbury’s Scott McLean said he’s never seen it this bad.
“[The year] 2013 was probably the worst year that I’ve seen in my career and I’ve been through a number of cycles,” the 30-year exploration worker said.
He considers himself to be one of the lucky ones, however. McLean has been able to start a few projects in the Sudbury basin with his junior mining companies Transition Metals and Sudbury Platinum.
Polk said he hasn’t been so lucky, and went from making more than $500,000 a year to nothing, overnight. He noted a drop in metal prices, and shaky investor confidence is also partly to blame.
Laurentian University economist David Robinson said the long-term outlook shows metal prices will increase — and a turnaround could come as soon as the end of this year.
But in the meantime: “These prices all act like a kind of mob coming out of a theatre,” he said. “You just don’t know what it’s going to do.”
For the original source of this article and a radio interview, click here: http://www.cbc.ca/news/canada/sudbury/low-metal-prices-put-chill-on-northern-ontario-mineral-exploration-1.2773920