The mayor of this northeastern Ontario city is encouraging other gold-dependent communities to lobby together against the sale of the yellow metal from federal government reserves.
Mayor Vic Power says the federal government is contributing to low gold prices by selling gold held in its reserves.
“When gold prices go below US$400 per oz., I get nervous and I think everybody else should too,” Power says.
By selling the metal, the federal government is “deterring investment in gold mining and exploration” at a time when gold mines face tough times, Power said.
Investment in gold exploration is down because of the government’s policy, he said.
Power has written to 43 communities which depend largely on gold mines to join Timmins in lobbying against the government policy, and hopes representatives will travel together to Ottawa in September. “We want to go as a group,” he said. “Gone are the days when a town can argue on its own and get heard.”
— Canadian Press
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