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New survey shows Ontario mining investment attractiveness lagging behind rest of Canada

THUNDER BAY -- A new report shows Ontario is lagging behind other provinces when it come to mining, a finding the head of the prospector’s association says may have to do with a cash flow issue.
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Miners at Lac Des Illes work in this tbnewswatch.com file photo. (tbnewswatch.com file photograph)

THUNDER BAY -- A new report shows Ontario is lagging behind other provinces when it come to mining, a finding the head of the prospector’s association says may have to do with a cash flow issue.

The recently released Fraser Institute survey ranks Ontario ninth in Canada and 23rd in the world for mining investment attractiveness. As late as 2013 this province boasted a ranking within the top 10.

While the news isn't good, Ontario Prospector Association president Garry Clark said it doesn't show the whole picture.

"The survey itself isn't always indicative of the reality," he said.

Many of the respondents, more than half of which are exploration companies, are based in Vancouver.

"Some of those explorers don't even work and have never worked in Ontario so obviously they rank it really low and there's still the concept that things are worse sometimes here than they are."

It's true that there is almost no new exploration in the province but that's a problem everywhere.

"There's no money in the system so you have a lot of people who are just bitter in general," Clark said. "There's no exploration going on in most places because you can't raise any money for the juniors worldwide."

But a $300 million deal with Premier Gold and Centerra Gold to get Beardmore's Hardrock Gold project off the ground, Goldcorp's $526 million buyout of Probe Mines for its project near Chapleau and a host of other companies shows that there is interest in the region. 

Clark said he's been through five boom-and-bust cycles in the province and while it's down right now, there's no doubt things will pick back up.

"Our rank will go back up for sure because the quality of the geology is here," he said.

The survey points to uncertainty in the province in dealing with First Nations.

"Striving for clarity has resulted in complete incomprehensibility, impractical regulation, and misinterpretation of rights on all sides," one respondent said.

Clark agrees that there needs to be a standardization for First Nations consultation but it's something he sees that will get better over time.

"It's still new and it's something (mining companies) didn't have to do in the past," he said.


 





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