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Mining still strong

By Jamie Smith, tbnewswatch.com

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A high Canadian dollar isn’t keeping area mining industry down as industry officials opened one of their largest local symposiums Wednesday.

With the Vahalla Inn parking lot full of brand new pickup trucks and more than 400 people in attendance, the two-day Northwestern Ontario Mines and Mineral Symposium is proof that business is booming for the mining industry in Northwestern Ontario said Ontario Prospectors Association executive director Garry Clark.

Clark, who has seen three boom and bust cycles over the years, said with gold still over the US$1,000 mark despite a high Canadian dollar, activity in the area is unprecedented.

"This is the highest I’ve ever seen. The gold price has never been where it is now and the commodity prices are very strong. World demand is amazing. China wants just about everything we can put out," said Clark said.

Although a stronger dollar means lower prices for metals, Clark said Canadian investors will still be investing heavily in Northwestern Ontario mining because of deposits being discovered.

"The money still flows in. People are making money, they’re investing in exploration. They know we’re finding stuff," Clark said.

As over a dozen drills begin in places from Rainy River to Geraldton this summer, Clark said one of the biggest difficulties for the mining industry is finding enough employees.

"We have a real backlog of skilled talent. We need people to get into the industry and start participating," Clark said.

Clark said most people think that most skilled labour is needed once a mine is up and running but exploration, which is the stage most of Northwestern Ontario is in, actually costs more than developing a mine.

Officials with the Thunder Bay International Airport recently told Clark that the mining and exploration industry collectively become the number one user of the airport. Clark said a junior exploration company, Thunder Bay now has over 20, can spend anywhere from $100,000 a year to millions of dollars in and around the city exploring mineral deposits.

"We spend probably more on exploration than we would in developing a mine on a year to year basis," Clarke said. "The reality is a lot of people are out there doing exploration and that’s taking up a lot of money, spending a lot of money in Thunder bay and surrounding areas."

Northwestern Ontario Prospectors Association president Barb D’Silva said the symposium has grown every year in the past few years because of the activity in Northwestern Ontario. From the ring of fire to Atikokan, D’Silva said the conference is a chance for industry, prospectors and communities to discuss the recent mineral discoveries.

"Just about every major project in Northern Ontario is here today," D’Silva said. "People are catching on that there is great potential here and we need to discover these projects."

D’Silva said that discoveries such as the ring of fire are still in the exploration phase and remain underdeveloped. Although there is excitement, she cautioned that infrastructure is needed before major development can begin.

"Once there’s one mine working and functioning there the stability of that region will be much greater," D’Silva. "Right now it’s (ring of fire) still very grassroots exploration…until there’s an actual mine there there’s no guarantee of anything."