Ontario prospectors to get $30 million in exploration incentives

Ontario has allocated $30 million in incentives for mineral exploration in the province over the next three years. Provincial Treasurer Robert Nixon included the allocations in his 1990-91 budget unveiled recently in Toronto. Of the $30 million, $25 million will go to the Ontario Prospectors’ Assistance Program (OPAP) and $5 million will go toward “special incentives” aimed at selected communities in northern Ontario.

“Some communities are experiencing serious difficulty as a result of mine closures or cutbacks,” said Nixon in announcing his budget.

Mines Minister Hugh O’Neil said he expects to announce in the next few weeks which communities will be targeted for the special incentives and how the $5 million will be administered.

OPAP was established in Nixon’s 1989-90 budget as part of a package of incentives with a 1-year allocation of $5 million.

O’Neil said the allocations were a recognition of the important role mining plays in Ontario’s economy. A spokesman for the minister added that the incentives are particularly directed to small prospectors and developers. In total expenditures, the Ministry of Northern Development and Mines will receive $345 million in 1990-91, a 19% increase from the $290 allocated in the 1988-89 budget and an 8.4% increase over the $318 allocated in the 1989-90 budget.

Total budget expenditures for the province are set at $44.5 billion in 1990-91, compared with $41.7 billion the previous year and $38.7 billion in 1988-89. The 1990-91 budget forecasts a surplus of $30 million for the province and a reduction in accumulated debt of $39 billion by $430 million, the first such reduction in 43 years.

Nixon also noted that the province is pursuing discussions to renew the Canada-Ontario Mineral Development Agreement which expired on March 31.