Engineering & Mining Journal

DEC 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

Issue link:

Contents of this Issue


Page 73 of 115

72 E&MJ • DECEMBER 2018 MINING IN ONTARIO Ontario: an Overview Mergers, discoveries and a new mine signal the dawn of a golden era On September 24th 2018, Barrick Gold and Randgold Resources announced agree- ment on a share-for-share merger valued at US$6 billion, creating an industry-leading gold mammoth that will focus on assets in tier-one jurisdictions. This new incarnation of Barrick will own half of the world's top ten tier-one gold assets, and over 77 million ounces of proven and probable gold reserves. One month before the Barrick-Randgold announcement, the Ontario junior commu- nity received news of Great Bear Resources' high-grade gold discovery at the Red Lake camp, which spurred its share price from C$0.50 in August 2018 to over C$3.30 a mere two months later. Michael White, president and CEO of IBK Capital, the investment banking firm that brokered a C$10 million private placement for the Vancouver-based junior, cited the discovery and financial transaction as an example of market revival, reflecting: "The public markets for mining and metals have gone through a period of contraction, but we see that coming to end and heading into a bull market." If the mergers and discoveries in Q3 2018 were early indicators of a new upturn in the gold sector, tangible evidence came in the form of Ontario's first new high-grade gold mine in ten years, as Harte Gold opened its Sugar Zone gold mine in Northern Ontario on October 24th. Stephen Roman, president and CEO of Harte Gold, suggested the open- ing of the Sugar Zone demonstrates that Northern Ontario is open for business: "We will revitalize the region and town of White River and employ hundreds of people," he stated. A new provincial government focuses on collaboration Kenora-Rainy River MPP, Greg Rickford, was sworn in on June 29th 2018 as the new Minister of Energy, Northern Development and Mines, and Indigenous Affairs in Premier Doug Ford's Progressive Conservative cabinet of the Ontario government. Under the previ- ous Liberal government these three responsibilities had been divided between individual ministers, and this perceived downgrading ruffled some feathers. However, Chief RoseAnne Archibald, leader of the Chiefs of Ontario, voiced her support for the incumbent minister, declaring him to be, due to his experience working with northern communities, by far the best choice to work with the Indigenous Peoples of Ontario. In his interview with Global Business Reports, Minister Rickford underlined his commitment to move forward with a resource revenue sharing program intended to help northern towns and Indigenous communities share in resource development. Sandra Gogal, partner at Miller Thomson LLP and expert in Aboriginal and environmental law, explained how the program can benefit communities and mining companies alike: "This pilot project would see governments sharing their mining tax revenues with affected First Nations, with the aim of encouraging mining development and alleviating the financial pres- sure on mining companies." The theme of collaboration is also evident beyond the traditional dynamic of mining companies, governments and local communi- ties, exemplified by the Pan-Canadian SMR (small modular reactor) roadmap being developed between the Ontario government, nuclear energy giants Bruce Power and Ontario Power Generation, along with other provinces, territories and power utilities from across Canada. "The realization of an SMR industry in Ontario will provide sustain- able and reliable power to Ontario's remote communities and support vital industry that will create jobs and opportunities in the north," noted Minister Rickford. A palpable sense of positivity has returned to Ontario, one of the preeminent global mining jurisdictions, as players from across the value chain prepare themselves for the next upswing. GBR has been on the ground talking to protagonists from across the breadth of On- tario's mining sector and the following pages examine and relate its hopes and concerns. This report was researched and prepared by Global Business Reports ( for Engineering & Mining Journal. Editorial researched and written by Ben Cherrington, Elisa L. Iannacone and Sofia Messina. For more details, please contact Hon. Greg Rickford, Minister of Energy, Northern Development and Mines, and Indigenous Affairs, Government of Ontario.

Articles in this issue

Links on this page

Archives of this issue

view archives of Engineering & Mining Journal - DEC 2018