Ring of Fire Could Generate $25 Billion Revenue and Jobs Across Ontario

 A report issued jointly by the Timmins Chamber of Commerce and the Ontario Chamber of Commerce says that Ontario’s Ring of Fire, when developed, could generate up to $9.4 billion in new economic activity over the first 10 years of operation and sustain 5,500 jobs annually.

“The revenue generated by developing the Ring of Fire includes $2.7 billion for the financial services sector and $1.2 billion for the wholesale and retail trade sectors.

The Ring of Fire is the mineral-rich region in the James Bay Lowlands located southwest of Attawapiskat, Northeast of Thunder Bay and Northwest of Timmins, Ontario.

The report titled Beneath the Surface: Uncovering the Economic Potential of Ontario’s Ring of Fire says that by 2047 the region’s potential mining projects could generate more than $25 billion across numerous sectors in Ontario.

Provincial and Federal Governments Need to Cooperate on Infrastructure

Delays in realizing the Ring of Fire are being caused by the lack of coordination between the provincial and federal government. This is the most serious stumbling block in the development of the Ring of Fire. The study’s authors are calling on the provincial and federal governments to fund, design and build transportation infrastructure which currently does not exist in the vast remote region which is only accessible by air.  

“There is a strong business case for governments to invest in this economic opportunity,” says O’Dette. “The federal government, in particular, needs to play a more active role in this development, as it has for other transformative projects including the oil sands, the St. Lawrence Seaway, and Churchill Falls.”

The need for the federal government to invest in infrastructure for major resource projects like the Ring of Fire is something the Timmins Chamber of Commerce has long argued for, even garnering the support of the Canadian Chamber of Commerce for this policy in September 2013.

“Our study makes it clear that the short- and long-term economic impacts of the Ring of Fire extend far beyond mining,” says Allan O’Dette, President and CEO of the Ontario Chamber of Commerce.

“It’s time to broaden the Ring of Fire conversation to include all of Ontario, not just the Far North,” O’Dette added.

The development of the Ring of Fire would also generate an estimated $6.2 billion for the mining industry in its first 10 years, concentrated primarily in Northern Ontario.

“Although this would mean great things for the North, it’s difficult to overstate the massive economic impact that the Ring of Fire could have for all Ontarians,” said Phil Barton, President of the Timmins Chamber of Commerce. “Many people tend to think of the project as something that will specifically benefit just one region or another, but this study shows that this just isn’t true. The Ring of Fire is truly a once-in-a-generation economic opportunity for the province and indeed the country.”

The study shows that the Ring of Fire will generate significant revenue for all levels of government, to the tune of $1.95 billion within the first 10 years of its development.

With the Canadian Chamber and its 450 chambers of commerce and boards of trade -- representing 200,000 businesses nationwide -- supporting this approach, it’s hoped that all governments can work together to help make the Ring of Fire a reality.
 
“The sheer scope of the Ring of Fire is such that everyone must work together to realize its full potential,” said Barton. “Making this happen will require firm commitments and considerable effort from everyone involved, and we sincerely hope all levels of government are willing to come to the table.” 

Federal Government Still Has Not Responded to  Province’s Invitation

On February 14^th, 2014 Michael Gravelle, Ontario Minister of Northern Development and Mining, speaking at a news conference from Thunder Bay Ontario said the province was very disappointed that the Federal government has not played a larger role and become an active partner in developing the infrastructure required to make the Ring of Fire mining potential a reality. He renewed his call on the federal government to appoint a representative who would participate in the proposed Development Corporation that Ontario touts as the best vehicle for providing a partnership approach to funding of transportation, energy and other infrastructure requirements.

The Development Corporation would bring to the table all levels of government including representative of First Nations and their regional support organizations and mining companies.

However Joe Oliver the federal Minister of Natural Resources Canada while being questioned at a news conference at PDAC 2014 was non-committal about the Harper government’s intention to become a full partner on the Development Corporation. Minister Oliver stated the Harper government supports the development of the Ring of Fire but when asked by www.mininglifeonline.net to provide further details of that support declined to do so.

Highlights

Additional highlights from the study include:

Within the first 10 years of its development, the Ring of Fire will:

• generate up to $9.4 billion in Gross Domestic Product (GDP)
• generate up to $6.2 billion for Ontario’s mining industry
• sustain up to 5,500 jobs annually (full time equivalents)
• generate nearly $2 billion in government revenue, divided between the federal, provincial, and municipal governments.

Within the first 32 years of its development, the Ring of Fire will generate more than $25 billion in economic activity across numerous sectors in Ontario, of which mining is just one

• $2.7 billion in revenues for the financial services sector
• $1.2 billion for the wholesale and retail trade sectors
• $600 million for the manufacturing sector
• $500 million for the utilities sector