TORONTO (miningweekly.com) – The output per worker in Ontario’s mining industry is $680 000/y, or is six times the province’s industrial average, and mining in the province has an expanding workforce in which the average weekly wage is about 60% higher than the average for all industry in Ontario, a report published by the Ontario Mining Association (OMA) has found.
The OMA’s mineral sector economic impact study ‘Mining: Dynamic and Dependable for Ontario’s Future’, prepared by University of Toronto (UoT) economists Peter Dungan and Steve Murphy was released on Thursday at the UoT’s Rotman School of Management.
“Mining is an expanding component of the Ontario economy. The world wants Ontario’s mineral products and if the province provides necessary infrastructure support and maintains an atmosphere conducive to investment, it will continue to be pulled ahead by a strong mining industry,” OMA president Chris Hodgson said.
Mining companies in Ontario contribute more than $800-million in taxes a year and personal income taxes paid by mining sector employees reach at least half-a-billion-dollars more each year. Capital investments in new projects are also increasing and so are investments in mineral exploration.
The industry invests about $1 800 per employee a year in training and health and safety, and charitable donations by Ontario mining companies reach $10-million a year, supporting local communities and provincial wellbeing in a broad range of ways.
The report found that mining operations in Ontario acquire more than 70% of the inputs necessary for production within the province and more than 30% are obtained within 80 km of operations.
Spending on exploration has increased significantly, to $1.02-billion in 2011, when compared with the total exploration spend of $139-million in 2002.
While many mine suppliers can be found in the Sudbury and North Bay area, a large concentration of mine supply companies can be found in Toronto and Mississauga.
Since 2002, as the overall international goods trade deficit for the province has more than quadrupled, the trade surplus for Ontario mineral products has strengthened by more than $12-billion, remaining positive over the entire period.
The report examines many different aspects of the Ontario mining industry, including its importance to the provincial economy now and in the future, and the industry’s efforts to make this contribution in an increasingly safe and sustainable way. The analysis is based on three main sources: a wide variety of published data, a survey of OMA members and input/output calculations conducted by the authors.