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NET NIT – Opposition grows toward Ontarios diamond royalty

The ONTARIO MINING ASSOCIATION (www.OMA.on.ca) has published a thoughtful item outlining the growing opposition to ...


The ONTARIO MINING ASSOCIATION (www.OMA.on.ca) has published a thoughtful item outlining the growing opposition to the provinces proposed 13% diamond mining royalty.

During a recent conference held in Dryden, Ont., the OMA noted the following:

The Northwestern Ontario Municipal Association expects such a tax grab will ruin the provinces reputation as a good place to invest.

The Attawapiskat First Nation continues to believe such a royalty will harm future development opportunity for Aboriginals in the province.

The Progressive Conservative Party is making the royalty an election issue (Ontarians go to the polls in October). The party promises to roll back the royalty to restore investor confidence.

The New Democratic Partys local MPP says it is unfair to charge one rate for diamonds and half that rate for a gold mine if it opened next door to De Beers Victor diamond project in the Attawapiskat area.

Northern mayors have said the royalty will keep other diamond mines from opening in the province. The mayor of Timmins called the royalty what it is: a short-sighted tax grab.

The OMA wrote: With all these voices rising against the royalty perhaps it is time for the government to reconsider the long-term implications for all Ontarians and try to find a solution to its self-created 13% problem.


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