SoVote

Decentralized Democracy

Ontario Assembly

43rd Parl. 1st Sess.
March 7, 2023 09:00AM
  • Mar/7/23 9:00:00 a.m.
  • Re: Bill 71 

It is a privilege to rise for second reading of our government’s proposed Building More Mines Act, 2023. I want to indicate that I’ll be sharing the government’s leadoff time with the parliamentary assistant to the Minister of Mines. The PA will be touching on the importance of Indigenous partnerships to the future of Ontario’s mining sector and the progress to date in developing the Ring of Fire.

Before I begin, I’d like to take a moment to thank the mining industry leaders and other partners who have provided my ministry and me with invaluable feedback on the opportunities and challenges they’ve encountered in the sector under the previous governments. The feedback has informed the Building More Mines Act, Mr. Speaker.

Through the minister’s mining industry council—MMIC—meetings and other discussions, they provide us with actionable ideas on how to improve the Mining Act and move the industry forward. The main theme that continually came up in our discussions was improving inefficiencies in the processes. That is what this act is all about. It’s about making the ministry more efficient. It cannot take 15 years to build a mine. It’s simply unacceptable when we have the knowledge, the skilled labour force and the innovative solutions to address the issues.

In the early 1960s, the mineral deposits at Kidd Creek were found and three years later the mine was up and running and producing valuable minerals. The sudden influx of people and the economic activity allowed the surrounding communities to experience an economic boom in a very short period of time. Today, Mr. Speaker, it takes 15 years to do the very same thing. The mines get built slower, the economic benefits move slower and the processes take longer now than they ever have. How is that possible, when today we know more and our technology is better? It has everything to do with our outdated and unnecessarily restrictive regulations.

Previous governments sat idly by and let this problem fester. We are here to fix the 15 years of Liberal negligence, and it starts with updating the Mining Act to match the reality of the current state of the mining industry. This is so that the exploration and mining sector can continue to do what it does best: making the mineral discoveries and building the mines of the future.

Our government remains focused on creating the conditions to help attract investment and optimize competitive advantages in the sector. This includes creating the most logical legislative and regulatory environment possible. We are doing all of this without compromising our world-class environmental standards or Indigenous duty to consult.

Mr. Speaker, an important distinction to make is that governments don’t build mines—companies do.

As Ontario’s Minister of Mines, I’m extremely passionate about the mining industry and the critical role mining plays in Ontario’s economic prosperity. Mining has long been a driver of growth for Ontario. We remember the days when the ONR was being driven from North Bay to Cochrane to access the agriculture belts in there. They found silver and cobalt, and that kicked off the whole thing. That led to the gold discoveries in Porcupine and it led to the gold discoveries in Kirkland Lake and silver discoveries in Elk Lake. It also led to the base metal discoveries, as well, in the Horne mine in northern Quebec.

Mining remains a cornerstone for our economy today—and will for many years to come. I come from a mining town, and I’ve seen first-hand how the industry can build up communities. I was born and raised in South Porcupine, at the historic Dome-Ex property—actually, the mine site village of Dome and Dome-Ex on the Dome property. I was raised in a house in the shadow of a mine. I have mined all my life. My family has been in mining for over 100 years.

My father was born in 1920 in a house behind the mill, and obviously, my grandparents were there before my father was born. Seven kids were raised in that house, and my father was able to provide for us because of his career in mining. My father’s work inspired my career, and I have worked in the mining industry for the bulk of my career.

My father was 16 years old—he was the eldest in his family—when he finished grade 13—at 16 years old. So, in 1936, he started to work at the Dome mine. Why? Because there were no other jobs. It was in the middle of the Depression. And that’s what he did for the rest of his career, absent the time he spent in the Second World War. And as I said, we raised seven kids because my father worked in mining.

That’s what this act is all about: giving more people the opportunity to have a rewarding career in mining or the associated industries. The member from Sudbury knows all about this: He landed a career in a smelter that helped him buy a house and start a family, something all Ontarians have been asking for. Mining provided for that future.

As I’ve said before, I have worked in the mining industry for many years, my whole career, and I have witnessed a lot of changes and challenges first-hand. In my time in the industry, I met some of the best and brightest people the world of mining has to offer—people who never stopped innovating and coming up with solutions to challenges that they faced.

It’s no coincidence that the technology that has been driving progress in the mining industry is because we have such a high percentage of highly paid professionals that are leading this industry. It’s no accident that the intake water from Musselwhite mine is cleaner than the discharge water. It’s no accident, with the Côté Lake mine, there is no discharge water. That mine took 17 years to permit, to get across the line so you could start building this mine, and there is absolutely no discharge water out of that facility. It’s a remarkable achievement, and it’s done through the technology and the skill and the ability of the mining people.

Despite these challenges, Ontario remains a world-class mining jurisdiction and is always among the top 10 jurisdictions in the world for mineral exploration spending. But we can do better. We must do better.

The industry contributes nearly $13 billion annually to Ontario’s GDP and provides 75,000 jobs associated with mineral processing and mining supply and services. Ontario’s mining sector has one of the highest proportions of Indigenous workers of all industries in the province. Indigenous employment accounts for 11% of direct mining jobs in Ontario.

One of the things I did in my career with Placer Dome was help develop the Musselwhite mine. With those agreements—and they were very progressive IBAs that were signed with five First Nations and they ended up being revenue-sharing agreements that I led that directly related to increased prosperity with the communities surrounding that mine because of the activity in that mine. That’s what activity in that sector can do.

As you all know, I worked with Wahgoshig Resources Inc. That’s the commercial entity for WFN. WFN is the Indigenous community on the south shore of Lake Abitibi. You start off with relatively passive economic involvement and by the time we had finished, the Wahgoshig First Nation was a participant in the real economy by building a 100%-owned diamond drilling company, owned by the Indigenous people, by capitalizing on the economic opportunities in their traditional territory. That’s what we did working together with First Nations.

About 25% of direct mining jobs in Canada are in Ontario and around two thirds of these direct mining jobs are in northern Ontario.

Ontario’s statistics are equally impressive when it comes to mineral exploration. In 2021, Ontario was second in Canada for mineral exploration expenditures, totalling $878 million, roughly 24% of all mineral exploration expenditures in Canada. As of March 1, 2023, there are approximately 366,000 active mining claims in good standing in Ontario. In 2021, Ontario was Canada’s third-largest mineral producer, producing $11.1 billion worth of minerals—20% of Canada’s total mineral production.

Ontario is one of the leading world producers of gold, nickel and platinum group elements. In 2021, Ontario produced approximately $3.1 billion worth of critical minerals with 10 of those 36 operating mines in Ontario producing critical minerals. That same year, platinum group elements and copper had the highest critical mineral production values, at least $1.2 billion and $1 billion respectively. That’s what mining does to the economy and for the economy for Ontario.

Ontario produces approximately two fifths of Canada’s gold production, one third of Canada’s nickel production, one quarter of Canada’s copper production and two thirds of Canada’s platinum group metals production.

Some of the world’s largest mining companies operate in Ontario, such as Glencore, Vale, Newmont and Barrick. These companies benefit from a range of provincial support programs, including programs to help manage the energy costs associated with mineral production.

Through tax incentives and targeted business supports, we help companies across all phases of the mining sequence leverage opportunities to invest in and promote their mineral and mining projects.

There are currently 36 active mining operations in Ontario, the majority of which are in northern Ontario, and there are more new mine construction projects and mine expansions under way as we speak. There are many fantastic projects in various stages of development. Under our government, we want to help pave the way so that more critical mineral mines get to production that much sooner—mines like Vale’s Copper Cliff south mine project that I visited with the Premier this past October. Phase 1 of the Copper Cliff complex south mine project reunites the south side of Copper Cliff mine with the north side and creates a new supply hub for low-carbon critical minerals, helping anchor Sudbury as a homegrown and sustainable supply chain for electric vehicles and the batteries that power them.

Did I tell you, Speaker, that that project cost was brought in at almost $1 billion—over $900 million to do this right here in Sudbury and all the benefits that are accrued to Sudbury because of those mines? And they’re doing it cleanly, all with EVs, no diesel. They’re committed to the environment that their employees work in.

The re-opened mine will provide employment for more than 250 workers, boosting the local economy. These numbers are impressive, Mr. Speaker, but there is more that needs to be done. We need to continue to support the growth of the mining industry, because the future of our world depends on it. While the mining sector has weathered the recent unprecedented economic challenges better than most, it is not immune to external forces. Ontario must act now—and perhaps I should start saying “Madam Speaker,” not “Mr. Speaker”—

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  • Mar/7/23 9:10:00 a.m.
  • Re: Bill 71 

I apologize for that—because the demand for critical minerals needed in strategic sectors such as electric vehicles, telecommunications, national defence and battery storage is growing exponentially.

As I said last night, tonight is our time. We’ve got the minerals in northern Ontario that can be married to the manufacturing and production in southern Ontario. We’re in the heart of the EV revolution that is happening in Ontario right now. Our communities are poised in the north, associated with the mining projects to flourish.

Madam Speaker, when Minister Fedeli was here the other day, he talked about the hollowing-out of the manufacturing sector in southern Ontario. I’ll tell you, the forestry and mining sector was also hollowed out in those years as well. The forestry sector was decimated. I had four value-added projects in Timmins; they’re gone now. The member opposite knows, in fact, that two survived in his riding. The rest, including pulp-and-paper mills and chipboard facilities, are all gone. They lost the employees, and with that, our population in the north declined. Southern Ontario was expanding; northern Ontario’s population was declining in every single major sector. It’s time to change that, because now is our opportunity.

These minerals have specific industrial, technological and strategic applications. They do not have many viable alternatives, meaning if a critical mineral is not available, there aren’t many other minerals that can be used in its place. Where are we getting those critical minerals right now? Where are we getting the rare earths? They’re coming from Russia and they’re coming from China and they’re coming from the Congo. That’s what we can do; we can secure the supply chain right here in Ontario.

There are 33 minerals in Ontario’s critical minerals list, including nickel, cobalt and lithium. Foreign countries that do not share Ontario’s world-class labour, human rights, environmental and health and safety standards like Russia and China have a stranglehold on the markets for many of these minerals. Our allies are looking for stable suppliers of responsibly sourced critical minerals from jurisdictions with standards that mirror or exceed our own. It is up to us to do what Canadians and Ontarians have always done and rise to the occasion and show the world that those leaders come from here, and we can be that jurisdiction.

Ontario is blessed with some of the most mineral-rich deposits in the world, including critical minerals like nickel, cobalt and lithium used in manufacturing batteries for electric vehicles, smart phones, pharmaceuticals and advanced manufacturing technologies. Ontario’s vast mineral wealth, along with its competitive business climate, highly skilled workforce and incentives for innovation position it to become the leading global supplier of responsibly sourced minerals. We know the world wants Ontario’s critical minerals and we are one of the first governments to pave the way for this exciting sector by investing in exploration and innovation through our Critical Minerals Strategy and cutting unnecessary red tape so companies can build more mines.

As part of our strategy, we have made significant strategic investments in our Ontario Junior Exploration Program to find the mines of the future. And we’ve also invested in our Critical Minerals Innovation Fund to identify and help fund innovation in the sector. Ontario has a responsibility to help build the critical minerals supply chain, and to do so, we need to create the conditions for companies to build mines more efficiently. We will do this while maintaining our world-class environmental protections and meeting duty-to-consult obligations to accomplish this goal.

Here in this province, we have the mineral resources and the industry experience and skilled workforce to supply and manufacture the innovative technologies of tomorrow. We believe the mining industry’s best days are still ahead, and we’re creating the conditions for an unprecedented era of prosperity for the north, Indigenous communities and all of Ontario.

Through our government’s actions, outlined in strategies such as Driving Prosperity, the government’s 10-year plan to transform Ontario’s automotive supply chain to build the cars of the future, including fully electric battery vehicles, and Ontario’s Critical Minerals Strategy, our comprehensive five-year blueprint to strengthen Ontario’s position as a global leader in supplying critical minerals, we are working to build an integrated supply chain by connecting the critical minerals producers in the north, including the projects in the Ring of Fire, with the manufacturing might in the south.

Our first-ever Critical Minerals Strategy, which we released last year, is helping us create opportunities in Ontario’s mining sector, while supporting the transition to the green technologies of the future. The commitments in this strategy will see us boost the resiliency of our supply chains, expand innovation and increase our exploration capacity.

Ontario’s minerals are already part of the global integrated supply chain and are used in many, many projects worldwide. Our government has already taken several actions to help boost our supply chains for these critical minerals and implement the goals in the strategy since its release. We’ve invested in expanding geoscience information related to critical minerals through the Ontario geological survey. We’ve made strategic investments in critical minerals projects through the Northern Ontario Heritage Fund Corp.

I’ve already said we’ve supported early critical minerals exploration through the Ontario Junior Exploration Program. Last month, I joined Premier Ford in Sault Ste. Marie to announce our government has invested $5.8 million to help junior mining companies explore for critical minerals through the program. In total, we are investing $12 million over four years for critical minerals exploration in the Ontario Junior Exploration Program. Since the launch of the program in 2021, 32 companies have received funding for exploration of minerals such as nickel, copper, cobalt and lithium. These companies have invested an additional $12.8 million in these projects.

Last November, we launched the Critical Minerals Innovation Fund. The CMIF is a $5-million fund that supports the critical minerals sector by funding research, development and commercialization of projects to stimulate investment in Ontario’s critical minerals supply chain. Just yesterday, I was at the Prospectors and Developers Association of Canada conference and convention to announce the successful projects receiving funding. These innovative projects range from mining and mineral processing to the recovering and recycling of minerals, and they’re happening right here in Ontario.

Even with these accomplishments, we are just getting started, Madam Speaker. In this ever-changing global landscape, we need more responsibly sourced critical minerals to fuel the innovations and technologies of tomorrow. However, there are barriers we need to address before we can truly accomplish our goals, because there can be no integrated supply chain without an updated act to make the mining sector more efficient.

That’s what this is, Speaker. This is what we are accomplishing today. We are listening to the experts and delivering the efficiencies that will allow us to secure the supply chain for critical minerals, to help the entire mining sector there. We are providing flexibility and reducing costs for companies, so they can do what they do best: build mines. This is all part of our government’s plan to build the integrated supply chain, connecting critical minerals producers in the north with the manufacturers in the south.

The Building More Mines Act, if passed, will help us accomplish these goals to help our entire provincial economy and enter into an unprecedented era of prosperity, making Ontario the place to invest and to do business. I want to assure all of you: Ontario stands ready to do its part. We are optimistic that all members of the House will support this bill, because the future of this province depends on a stronger mining sector.

With that, Madam Speaker, I want to include the parliamentary assistant, so I’ll conclude my remarks and turn it over to PA Leardi.

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