Study of economic impact of mining in Ontario released

Mineral production in Ontario is a technologically advanced business that supplies a broad range of benefits to the province’s economy, according to a study by management consulting and accounting firm Ernst & Young.

Entitled “The Fiscal and Economic Contribution of the Mining Industry in Ontario,” the study was prepared for the Ontario Mining Association (OMA), with assistance from the Ontario Ministry of Northern Development and Mines (MNDM).

It says the industry is vital to Ontario’s economy in that it creates jobs and wealth in northern as well as southern communities. In 1990, an estimated $5 billion in personal and corporate income, more than 79,000 jobs and $1.28 billion in government revenues were created by direct and spinoff contributions of mining to Ontario’s economy. On the national level, mining contributes to Canada’s balance of trade of $18 billion, with about 30% of that total coming from Ontario.

The study indicates that the province’s mineral industry is prepared for future developments. In recent years, Ontario mining companies have been spending nearly $50 million annually on research and development, and more than $290 million on environmental protection.

The findings combine the results of a private survey with publicly available information. The conclusions, however, are based only on evidence from major mining companies. Since the exploration sector was not included in the survey, many of the spending estimates are probably low, thereby understating the impact of the entire mining industry on the Ontario economy.