The talk of booms and rumours of booms continues in
Northwestern Ontario and with good reason given the ramping up of mining
activity. Along with several mines
currently in production, there are a number of planned projects. Cliffs Chromite
Project in the Ring of Fire is about to undergo an environmental
assessment. Thunder Bay is
currently the host to some 26 exploration companies with projects expected to
produce gold over the next 3-5 years at Greenstone (Hard Rock), Atikokan (Hammond
Reef), Pickle Lake (PC Gold Inc.) as well as several other places. As well, Stillwater is planning to
develop a copper project near Marathon.
All this activity is generating exploration and supply work
but the mining boom is not here yet.
Nonetheless, area governments are beginning “to plan” for the
development that is underway and yet to come. Atikokan apparently has commissioned a community readiness
study that among other things argues that six major projects in the area will
lead to substantial construction activity, home building and potentially a
doubling of the population. Thunder
Bay is apparently also undertaking a Mining Readiness Strategy that will attempt
to capitalize on the mining development.
A boom with population growth would be a welcome development
in Northwestern Ontario. This
would be a much different region if Thunder Bay had 150,000 people and Nipigon
and Atikokan were communities of 20,000 people each. Yet, it remains to be seen if all of this mining development will
come to pass and yield the expected employment and income benefits given the volatility of world commodity prices. Most of the economic benefits will flow
from the prospecting, exploration and setting up the mines as operating mines
today are much more capital intensive.
With respect to all the planning being undertaken, the
emphasize seems to be entirely short term – that is, how to meet the needs of
the anticipated increase in population and demand for housing as well as
capitalizing on the mining employment.
A longer view needs to be taken. Three other things these communities
need to plan for. First, making
sure that new construction and development creates urban density in communities
rather than a short-term build it where you like frontier mentality. Second, that some of the resource rents
generated from these projects are invested in sovereign wealth funds for both
the First Nations and the rest of the region’s residents to serve as a long-term
source of income from a non-renewable resource. Third, there be some thinking devoted to what happens
when the mines close. Is this too
much to ask?
