OMIP grants cover more but total budget unchanged

Under recent changes to the Ontario Mineral Incentive Program (OMIP), all qualified exploration programs in Northern Ontario will be eligible for a grant equal to 50% of expenses, to a maximum of $300,000.

Currently, the 50% grant is available only for projects in the municipalities of Ignace, Atikokan, Manitouwadge, Elliot Lake and Kirkland Lake. Exploration in the rest of the province qualifies for a 30% grant. “The action indicates the provincial government’s firm support for Northern Ontario and the mining exploration industry, both of which are currently facing difficulties,” said Northern Development and Mines Minister Shelley Martel.

Martel recently replaced Gilles Pouliot as part of a cabinet shuffle at Queen’s Park.

But Steve Parry, president of the Porcupine Prospectors and Developers Association, says the move does little to convince investors that the Ontario government is serious about backing exploration in the province. “I think it’s going to have a positive effect (in the Timmins area),” he said. “But our real challenge is to change the perception among investors that Ontario doesn’t want mining.”

Although the enhanced program increases the amount of grant money available for each project, the total budget for OMIP — $9 million — has not risen. The decision to extend OMIP is a response to pressure from several communities, including Ear Falls, Wawa, Smooth Rock Falls, Sudbury East, Timmins, White River and others.