Study outlines strengths of Ontario’s mining industry
“Mining: Dynamic and Dependable for Ontario’s Future” is an important economic impact study, which was released in December 2012. It could not have been completed without the support of Ontario Mining Association members, who provided data and insights to develop a clearer picture of the range of benefits mining brings to the society and economy of Ontario.
The OMA thanks Peter Dungan, Director, Policy and Economic Analysis Program, University of Toronto, and Steve Murphy, Research Associate, Policy and Economic Analysis Program, University of Toronto, for dedicating their expertise to produce this multi-faceted study. The support of the Ministry of Northern Development and Mines was valuable and we hope this document helps us work with government to develop Ontario responsibly and make local regions and communities stronger.
In addition, we also thank Russ Noble and the Canadian Mining Journal for giving such prominence to the findings of this economic study in this edition of the magazine. In its full 80 pages, which can be found on the Ontario Mining Association website www.oma.on.ca, there are 47 charts, 32 tables and four maps, which emphasize and dramatically support the “dynamic” and “dependable” nature of the mining industry in Ontario.
There is, however, also a softer side to mining that may not be as well appreciated as its harder core economic benefits. Mining is a big business full of engineers, geologists, scientists, hard-working equipment operators, drillers, big machines and big hearts. Hard business decisions, dealing with international markets, fluctuating commodity prices and production scheduling don’t crowd out community support. As one mine manager said to me recently, “We try to be involved in some way, shape or form in all local events because many of our employees will be involved in these events in the community.”
Mining companies support their communities and their employees in a number of innovative ways. The economic report shows mining companies in Ontario making charitable donations of $10 million annually. In their communities, we see support of health related, educational, social, environmental, cultural and recreational activities.
Recent examples see mining companies restoring fish habitats, supporting energy research, replenishing local food banks, providing schools with emergency medical equipment and training and enhancing literacy programs. Also, in any given year, there are major donations from mining companies to hospitals, universities, colleges and research institutions.
Ontario is one of the safest mining jurisdictions in the world and mining is one of the safest industries in Ontario, achieving a 91% improvement in its lost time injury rate over the last 20 years. There are numerous factors contributing to this collective improvement in safety performance. One is the $1,800 per employee annually that the industry invests in training and health and safety. The economic impact study shows that employment in the Ontario mining industry is growing and these employees are safe, highly skilled, highly paid and highly productive.
The Ontario mining industry is a world leader in environmental protection. The industry devotes millions of dollars annually to environmental protection, environmental improvement and pollution prevention. According to the recent economic impact study, these investments in environmental protection top $60 million annually.
It is impossible to remove minerals from the Earth and process them without impacting, to a certain degree, the immediate land, air and water as well as animal and plant life. Modern mines and the entire breadth of Ontario’s mining history impose a very small footprint on the environment.
Past and present mining operations occupy 250 km2, or 0.023% of Ontario’s total area of 1,076,395 km2. The goal and commitment of modern mining operations is to minimize the temporary disruption of the environment during exploration and production and to maximize restoration at the end of a mine’s life.
Also, the mining industry helps all electricity consumers in the province through load shifting. Production schedules are designed so the highest demand by the mining industry occurs during the time of day when the overall demand on the system is at its lowest. Conversely, the mining industry ensures its lowest demand coincides with the highest demand in the overall electrical network.
Mining has responded to the government’s efforts to reduce peak power demand and in 2011, it shifted 150 megawatts of electricity consumption away from coincident peaks in demand across the system. This is enough power to meet the average peak needs of a city the size of Greater Sudbury.
The investments by the mining industry to improve its environmental footprint, which builds upon its investment in health and safety training and its social investments, are not reflected in measured output or productivity for the industry. However, the societal benefits of this spending by mining companies in Ontario cannot and should not be overlooked.
Chris Hodgson is presideent of the Ontario Mining Association.
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