Ontario output less valuable

Lower nickel production and uncharacteristically low prices for platinum group metals contributed to a decline in the value of mineral production in Ontario in 2003.

Production figures for last year indicate that the total value of Ontario’s mineral production was $5.54 billion, down from $5.94 billion in 2002.

On a positive note, the value of non-metal commodities in the province was up slightly from the previous year.

Metal production accounted for $3.4 billion of the total, whereas non-metals production totalled $2.2 billion. Ontario produced about a third of Canada’s metallic minerals and 25% of its non-metals.

Projections for 2004 indicate that for the fifth straight year, Ontario will lead all Canadian provinces and territories in exploration and deposit appraisal spending. An estimated $370 million was spent on mineral exploration, deposit appraisal and mine development in 2003. The amount breaks down as follows: $147 million (40%) for exploration, $44 million (12%) for deposit appraisal, and $179 million (48%) for mine development.

Estimates for 2003 indicate that spending by junior mining companies will increase 10%, to $56 million from $51 million, in 2002. Meanwhile, major mining companies are expected to spend $135 million, up 53% from $88 million a year earlier.

Gold led the climb upward in exploration spending. Almost $93 million was spent searching for the yellow metal in Ontario, up from $60 million in 2002.

Last year’s increase in the price of gold to more than US$400 per oz. was directly behind the increase. Increased investor interest in gold companies in Ontario is expected to boost exploration activity further in 2004. Indeed, exploration spending, including deposit appraisal and mine development, is forecast at $415 million.

To date, more than 150 million oz. gold have been produced from 230 Ontario mines. In 2002 alone, more than 2.4 million oz. of the yellow metal were produced in the province.

Thirty-one per cent more was spent searching for diamonds and base metals, and the search for other precious metals increased by 6% over 2002 levels.

— The preceding is from an information bulletin published by the Ontario Ministry of Northern Development and Mines.