Federal-provincial agreement to benefit northern Ontario

With mining revenues down and prospecting activities barely a shadow of what they might be, the governments of Canada and of Ontario have injected $95 million into the Northern Ontario Development Agreement (NODA).

Of this amount, $30 million has been allocated to the mining industry. More than 40,000 people in Ontario make their living in mines, smelters and refineries and another 50,000 in secondary industries. Mineral-associated industries generate $6 billion of business annually in Ontario. Given the slacknesss of the North American economy and the fact that 80% of the province’s mineral production is exported, activity in northern Ontario is at a low level.

With the injection of capital, the governments expect that partnerships with the private sector will stimulate the many opportunities there for developing new technologies, specifically in the minerals industries.

The $30 million will be allocated in following manner:

— Geological Survey of Canada and the Ontario Geological Survey will receive $9 million for studies leading to a better understanding of base metal deposits. These studies will assist in the discovery of new deposits. — Mining companies and appropriate government agencies will receive $9 million to investigate ways for improving mining methods and workers’ health and safety. Processing research will focus on reducing the environmental effects of mining and milling activities. The sum of $2 million is earmarked for projects under the Ontario component of MEND (Mine Environmental Neutral Drainage Program).

— Exploration work will be assisted by $5.5 million going to the Geological Survey of Canada and the mines and minerals department which will be compiling digital information related to minerals and mining. — $2 million will be used to develop technologies that will assist in the interpretation of airborne geophysical data and in the creation of new borehole instrumentation.

— $2.5 million will be allocated to the industrial minerals, largely to gathering data and identifying new commodities.

— $2 million will go toward co-ordinating the various government and private sector groups and to administration.

Under NODA, forestry sector programs will receive $50 million and tourism programs, $15 million. Funding is shared 50-50 by the two levels of government, although specific programs may be financed more by one level than the other.