To: The Honourable Dwight Duncan
Minister of Finance
c/o Budget Secretariat
Frost Building North, 3rd floor
95 Grosvenor Street
Toronto, Ontario, M7A 1Z1

Dear Minister Duncan

The Ontario mining industry has enjoyed — until recently — one of the most prosperous and lengthiest periods of its history of making contributions to the society and economy of this province.   However, the current economic circumstances which are dominating the news are providing challenges for individuals, companies, entire industries and governments alike. 

Mining operates in the real world of global markets.  When commodity prices fall, companies must reduce spending to be in line with existing market realities.  That is why we have seen companies trimming budgets and capital expenditures and in some cases shutting down production.  Junior mining exploration companies are finding it difficult – if not impossible – to raise capital as are mineral producers.

The mining industry in Ontario has gone from full speed ahead to produce and sell mineral products around the world to a moving forward by navigating more cautiously through changing economics and shifting markets.  The precipitous fall in the prices of Ontario’s main mineral products illustrates this point.

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The Ontario Mining Association (OMA), is an organization that was established in 1920 to represent the mining industry of the province.

This letter from Ontario Mining Association President Chris Hodgson to member companies maps out the Association´s position concerning various aspects of Premier Dalton McGuinty´s announcement on plans for the future of Ontario´s northern boreal forest.

Recently, Ontario Premier Dalton McGuinty made an announcement concerning the launch of the Far North Planning Process.  A land use plan for the Far North has been requested by various groups for years and the lead up to this announcement has taken some time.  A fundamental principle of the Ontario Mining Association since its inception in 1920 has been to work productively with the government of the day and, in keeping with this, we have been engaged in an ongoing dialogue on this issue.

You may recall a memo that was sent on June 21, 2007, outlining the points of concern regarding a proposed Far North Planning Initiative that the OMA discussed with various ministers, members of the civil service and political staff. Since that memo was sent, our discussions with the government have taken on greater depth and, lately, more urgency, but the essentials remain the same.  The government is faced with a large task, which requires management of many competing interests.  Recent media reports have been giving rise to mounting expectations for a radical overhaul of the rules around access to land by resource companies. While the OMA supports changes to improve the systems in place, our concern has been that the scope of the initiative not become overwhelming and, therefore, drawn out and largely unmanageable, resulting in irrational decisions and regulatory uncertainty.  

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 The Ontario Mining Association represents companies for which environmental stewardship is a cornerstone value. Our members realize that their success depends largely on their ability to help establish healthy communities and sustainable environments in the areas where they operate.

The economic sustainability that mining engenders is often the first thing that comes to mind. Indeed, in northern Ontario in particular, there is little need to explain that mining operations play a vital role in the local economy and community life, often bringing in the investment that leads to the development of essential infrastructure and job creation. A recent University of Toronto study brought this home to a wider audience.

It concluded that the contribution of a single representative mine can have an impressive effect on employment and economic output, and that a large proportion of the benefits stay in the local area. Read the rest of this entry »

The mission of the Ontario Mining Association (OMA) is to support and improve the competitiveness of the mining sector in the province while representing companies engaged in the environmentally responsible exploration, production and processing of minerals in Ontario.

Established in 1920 to represent the mining industry of the province, the OMA has 57 member companies. These companies are engaged in mineral exploration, mining, smelting, refining and providing services to the mining industry. Most of the metal mines operate in Northern Ontario and produce nickel, copper, gold and a variety of other metals. The majority of non-metal mines (industrial minerals) operate in Southern Ontario and produce salt, nepheline syenite, calcite, gypsum, talc, silica, and other industrial minerals.

Chris Hodgson was appointed as the new President of the OMA in late October 2004. He joined the OMA following a distinguished career in provincial politics. He entered the Ontario Legislature following a by-election in 1994 and won general elections in 1995 and 1999, representing the riding of Haliburton-Victoria-Brock. While in government, Hodgson served in several cabinet positions including Northern Development and Mines, Natural Resources, Municipal Affairs and Housing and Chairman of Management Board. Previously, he was involved in municipal politics and real estate development.