To understand the impact of mining on the province's economy, consider this: The Toronto Stock Exchange is the world's pre-eminent market for mining stocks -- ahead of London.
It is estimated that 80 per cent of all mining financing is done through the TSX.
Hearings started last week on ways to modernize and streamline the Mining Act -- a move some fear will endanger the industry in this province.
Timmins Mayor Tom Laughren points out cities like his were built on forestry and mining. Forestry has been all but wiped out recently and things aren't much better in the manufacturing sector.
"Do you want to do the same thing with mining?" Laughren asks.
Premier Dalton McGuinty said recently First Nations communities must be consulted and accommodated in future mining development.
Timmins CAO Joe Torlone says protocols need to be put in place to define what "consultation" and "accommodation" mean.
If the changes put too many restrictions on mining, it will stifle this vital industry, he says. There has to be a balance between the mining and prospecting companies' needs and the rights of First Nations and people who own the surface land rights.
FIRST NATIONS
The review of the mining act was prompted by several high profile clashes between landowners and First Nations on the one hand and prospectors on the other. One controversial aspect of the present law is the right of prospectors to stake the mineral rights underneath the surface of land they do not own.
"There have to be some rules established," Torlone said.
Mining investment hangs on certainty in the industry.
"There are probably some things that need to be discussed and changed, but you have to be careful because it could have a very big impact at the end of the day," Laughren said.
Sudbury Mayor John Rodriguez says he's delighted the provincial government is opening up the mining act to provide revenue sharing for First Nations. He also points out mining cities such as Sudbury, also need a cut of the tax pie.
At 3,600 square kilometres in area, Sudbury is the largest municipality in the province, yet it is sparsely populated -- only 49.2 people per square kilometre. That makes it difficult to raise the kind of tax base needed to support mining infrastructure such as roads.
"If you are opening up the Mining Act to address the impact of mining on First Nations communities -- right on. I salute the premier for doing that," Rodriguez says. "I think the government is on the right track.
"What I am saying is we are a community, too. There is a shortchanging here and we need you to correct what we perceive to be an imbalance."
Mining is booming. Last year, there was $600 million in mining exploration and the total value of mineral production was more than $10.7 billion. Mines minister Mike Gravelle says the province will move cautiously to ensure the government doesn't burst that bubble.
"We, as a government, want to make sure we maintain that very attractive investment climate and we think we can find a balance, because the balance really is recognizing the opportunities that are there in the mining sector, but also updating the act so it better reflects the 21st century," Gravelle says in a phone interview.
COMPETITION
Bill MacRae is with the Porcupine Prospectors and Developers Association. He says the consultations are being pushed through too quickly. The first meeting was in Timmins last week, another was in Thunder Bay on Monday.
MacRae says the government needs to move carefully when it comes to consultation with aboriginal groups. He has been told that First Nations groups would like to pre-select who can acquire property on their traditional lands.
"If they do that, then the competitive nature of mining exploration will be gone because there won't be any ability to react to a new find without being pre-approved and making agreements with the native First Nations groups prior to acquiring the land. It will make it difficult," he said.
Yes, there have been some nasty abuses of the Mining Act. But the economy in Northern Ontario has been devastated by the downturn in the forestry industry. If this province wants to maintain its dominant role in mining, it must move cautiously in changing the act.
Christina Blizzard is a Sun Media Queen's Park columnist. She can be reached at christina.blizzard@tor. sunpub.com.