Northern Ontario mining projects need province's support, analyst says

A mining industry watcher says the provincial government should do more to help with First Nation consultation, and putting a cap on energy rates.

Stan Sudol said recent changes to Ontario's Mining Act have made negotiations between the industry and First Nation communities more complicated.

The Toronto-based communications consultant andmining policy analyst saidthat's hurting the industry, because it's delaying exploration projects, and increasing the cost.

The onus is on the government to improve the negotiation process, Sudol added.

The government needs to meet with the tribal councils across northern Ontario, along with junior mining companies, and let's hammer out a blanket, uniform agreement that is good for everybody.

Unless something is done, junior mining companies and prospectors fear the consultation process could become more onerous, he said.

Ontario power costs too high

While the future of the Sudbury Basin mining camp looks promising, Sudol said he's concerned about climbing power rates due to Ontario's Green Energy Act.

Without some sort of cap on energy rates, future value-added production in the form of smelters or refineries might not get built. Power's really less expensive in Manitoba or Quebec.

He noted about 600 jobs were lost at the Timmins Kidd Creek smelter refinery complex, largely due to high power rates.

The solution is to put a ceiling on industrial energy rates north of the French and Mattawa Rivers, Sudol said. However, that proposal could be hard to pass at Queen's Park.

Listen to the full interview with Stan Sudol on CBC Sudbury's Morning North radio program below: