Introduction to Mining in Ontario
Legislation and labor in Canada’s heartland province
In 2023, Ontario passed a series of important regulations that may pave the way to a brighter future for its mining industry. 2023 has also seen high prices for certain metals, boosting the margins of producers. On the other hand, the troublesome macroeconomic situation has meant that financing, particularly for juniors, has been problematic. All the while, Ontario’s miners and explorers have had to adapt to changing regulations in Ontario and abroad, attract talent in a shrinking labor pool, and manage their ESG credentials in the face of an ever-growing climate crisis.
2023 has seen new legislation and amendments to bolster Ontario’s mining industry. At the federal level, the Ministry of Energy and Natural Resources announced a C$1.5 billion Critical Minerals Infrastructure Fund (CMIF) in October 2023. The CMIF is a key component of the Canadian Critical Minerals Strategy and will address key infrastructure gaps to enable sustainable critical minerals production and connect resources to markets. Eligible recipients include provinces and territorial governments, private businesses, not-for-profit organizations, and Indigenous groups. The maximum funding available per project under the first call for proposal will be C$50 million for most applicants, but provincial and territorial governments may apply for up to C$100 million for public projects.
At the provincial level, the Ontario government continues to subsidize its local mining sector. The Ontario Junior Exploration Program (OJEP), for example, helps junior mining companies finance early exploration projects, with eligible juniors receiving up to C$200,000 to cover costs. George Pirie, Ontario’s Minister of Mines, shared updates on the program: “The OJEP launched in 2021 and is having initial success. Companies are eager to leverage the available funding and find the mine sites of the future. Our government is investing an additional C$6 million over the next two years in OJEP, bringing the government’s total investment in the program to C$35 million.”
Aimed to increase Ontario’s competitiveness in mineral exploration and development, the Building More Mines Act received royal assent in May 2023. This Act made amendments to the Mining Act, aiming to reduce the administrative burden, clarify requirements for rehabilitation, and create regulatory efficiencies by eliminating overly complicated, duplicative and unnecessary rules. Most of the interviewees featured in this report were enthusiastic about the new Act; Chris Hodgson, president of the Ontario Mining Association (OMA), said: “We were very impressed with how the government conducted the consultation process when developing the Act and regulations; they considered a broad array of perspectives and incorporated valuable input from expert practitioners.”
“Our government is improving the Mining Act to create the conditions for companies to build more mines efficiently, because it cannot take 15 years to build a mine.”
George Pirie, Minister of Mines, Government of Ontario
Mining-related environmental regulations in particular are a hot topic. Finding an equilibrium between the need to develop the critical minerals mines needed for the green energy transition, while taking the time to consider the environmental impacts requires a fine balancing act. Mary-Jane Piggott, vice president, mining environmental group at Klohn Crippen Berger, a consultancy focused on tailing-related designs and assessments, shared her thoughts on how such regulations should be handled in her field: “I support keeping regulation and governance responsibilities for tailings management within the industry and its professional organizations. Most industry professionals are passionate about environmental responsibility and are motivated to operate sustainably.”
Ontario’s 2023 spree of new regulations, deals and initiatives extended beyond its borders. The premier of Ontario, Doug Ford, sat down with the governor of the state of Nevada to sign an Economic Cooperation Memorandum of Understanding (MoU) to increase collaboration on electric vehicles, advanced manufacturing, mining, critical minerals, and related supply chains, among others. In 2022, total trade between Ontario and Nevada exceeded C$2 billion, with exports to Nevada totaling C$1.1 billion. “This agreement is based on our regions’ strong mining sectors,” said Nevada Governor Lombardo.
Setting the stage for the MoU, MineConnect, Ontario's mining supply and services association, has partnered with the Nevada Governor’s Office of Economic Development (GOED) and the Northeastern Nevada Regional Development Authority (NNRDA) for many years. This has allowed MineConnect members to make connections and secure contracts in Nevada. “The 10-year relationship we had with the GOED and the NNRDA paved the way for the recent MoU signed between Nevada and Ontario,” said Marla Tremblay, executive director, MineConnect.
“The framework for doing business is well-defined and practiced. The government understands the importance of mining and its required infrastructure. There are strong First Nation relationships and participation. I would place Ontario in the top three mining jurisdictions globally.”
Russell Bradford, Managing Director, Aston Minerals
Article header image courtesy of Alamos Gold