Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The Ontario government is launching a new program to fund junior exploration in the province and upping financial support for the Ontario Mine Rescue program.
The province’s 2021 budget, which laid out the initiatives, was tabled on March 24 and was passed on April 26. The document sets out C$23 billion in spending targeted at bolstering the provincial economy, and C$16.3 billion for health-related measures. Ontario projected a C$38.5 billion deficit in 2020-21, which it expects to slowly reduce to eventually reach C$20.2 billion in 2023-24.
As part of the government’s plan to increase jobs and economic activity in northern Ontario, the budget set out C$5 million over the next two years for the new Ontario Junior Exploration Program (OJEP). Under the program, junior mining companies can apply for funding to cover eligible costs up to a maximum of C$200,000 per exploration or development project.
“The impact of covid-19 on the mining sector has resulted in a decrease in the availability of capital for mineral exploration, [which] junior mining companies rely on,” the budget document said. “The success of junior exploration is critical to the discovery of existing and new mineral deposits that support larger mining companies, equipment manufacturers and investors across the province.”
In an email to The Northern Miner, Ministry of Energy, Northern Development and Mines spokesperson Drew Campbell said the ministry expects the program to be launched in the summer of 2021.
