Nothing promised

MINING: Minister meets with local leaders over met site closures

Posted By CHELSEY ROMAIN THE DAILY PRESS

Posted 23 hours ago

While understanding the impact of the closure of the Xstrata Copper's Kidd Creek Metallurgical Site, Minister of Northern Development, Mines and Forestry Michael Gravelle said he isn't about to set any false expectations on what can be done.

The minister was in town yesterday for several meeting regarding the planned closure of the site. In the morning he met with union leaders as well as the mayor and council, all of whom he said spoke eloquently and passionately about what the closure will mean.

"Everyone was very eloquent and passionate and also very, very clear about the impact of this decision," Gravelle said during an editorial board meeting with The Daily Press. "It's not that I didn't have an understanding of how significant this announcement was, cause I did."

He said while he did make a commitment to have serious discussions to his senior ministry officials, as well as top Xstrata officials, he was not able to make the promise everyone was hoping he would.

During the past month, the coalition fighting the closure have stated that the province needs legislation to stop Ontario resources from being processed outside the province.

While Gravelle acknowledged that this was what he was being asked to do, it was something he couldn't commit to.

"I know the expectation was I will simply bring forward legislation or law that will stop this from happening, but with the greatest respect, it's not that simple," he said. "It's very important that I do not set any false expectations of what I can or will do.

"It's more important that whatever I move forward on, I can deliver on it."

He said there was some information he received yesterday that he didn't already have, but there were reasons why he couldn't move forward to immediately stop Xstrata from closing the met site. He made mention of Section 91, which states that processing will take place in Canada. There's also an agreement in place with Quebec, where resources from each province are refined in the other.

He also said it was important as a cabinet minister to find a balance in maintaining a positive investment climate.

"Having said that, I can tell you I have been very affected by the discussions I had today," he said. "I am very impressed, if not personally touched, by the quality of the passion that came forward and the impact this will have on the community."

Since the announcement was made in early December, many have publicly stated that the cost of hydro in Ontario had a role in Xstrata's decision. Gravelle said that company officials have never stated this was the case, however many other companies have said it's a major issue.

"Whether there's any validity to it is something I plan on finding out," he said. "I certainly understand where people are coming from in terms of this decision, the impact its going to have.

"But whether or not we'll be able to find a way to change it, I'm not going to say that."

Aside from the Xstrata situation, Gravelle said there are many things to look forward to in the mining industry.

With the modernization of the Mining Act near completion, he said many things have been done to eliminate problems that have occurred in the past, especially when it came to the consultation process with Aboriginal partners.

Acknowledging there was still plenty of work left to be done, Gravelle said they are moving in a direction to meet their goals of meeting and obtaining an attractive investment climate. While exploration dollars have dropped from the $800 million mark in 2008 to $560 million in 2009, he said the numbers were still incredible.

"Relatively speaking, I think we've done not a bad job of positioning ourselves for the future in terms of mining opportunities," he said.

The largest and arguably the most exciting opportunities being what has been dubbed the "ring of fire", an area which saw a rush of staking in the latter part of 2007 in the James Bay lowlands.

Gravelle said the ministry hopes to position itself to take a co-ordinating and leadership role in its development and is something the whole of Northern Ontario should be excited about.

Gravelle said it's an opportunity they would like to see move forward, but done in the right way.

Gravelle said companies interested are not deterred by the current lack of infrastructure, and what it may mean to mine ore from the location and transport it to a refinery.

"Obviously there is some challenge when balancing the economic development while respecting the Premier's decision to protect 50% of the Far North," he said. "But this is a potentially a really wonderful opportunity we want to take advantage of.

"God knows we need some great news, and this may be it."