Discovering Opportunities in the Mining Sector Fostering Canadian German cooperation and partnerships November 13, 2012

Transcription

1 Discovering Opportunities in the Mining Sector Fostering Canadian German cooperation and partnerships November 13, 2012

2 Overview Ontario s Competitive Advantages Benefits of expanding your business in Ontario Exciting Times for Exploration & Mineral Production Consistent history of exploration and mineral development New Explorations Far North discoveries Ring of Fire Join a World Class Cluster Advanced technologies Experienced workforce Research & Development Support Network Expand Even Further Free Trade Markets

3 Ontario s Competitive Advantages to capitalize on Political stability; Internationally competitive business costs and tax regime; Diverse geological endowment; years of mineral production history; Open to foreign investment; World s largest mining capital market; Highly connected education and training network providing innovative solutions; Committed mining communities;

4 Ontario is Canada s Leader Capital Investment In 2011, Ontario led the country with $3.5 billion in capital investment in mining. Capital investment in mining is expected to increase to $3.8 billion in Operations 42 mines are in operation, 6 reopening this year with another 8 expected to open in the next decade. +$6 billion in expanding and upgrading existing gold, nickel and diamond operations. Investments of over $4 billion in the next 3 4 years to develop operations in Ontario s Ring of Fire area. Opportunities to engage in environmental services and technology, as companies spend an estimated $85 million a year on land rehabilitation, environmental engineering and technologies.

5 Ontario had the Leading Share of Canada's Mineral Production in 2011 Alberta 5.1% British Columbia 17.1% Northwest Territories 4.3% Yukon 0.8% Nunavut 0.8% Nfld. & Labrador 10.3% Prince Edward Island 0.01% Nova Scotia 0.5% New Brunswick 2.6% Quebec 15.4% Saskatchewan 18.3% Manitoba 3.6% Ontario 21.2%

6 Ontario`s Mining Supply and Services Industry Ontario North Economic Development Corporation (ONEDC) study released in April 2010: Total value of the mining supply and services sector output is $5.6 billion Some 500 companies employing about 23,000 people. The sector comprises five main capabilities: Mining Engineering and Mine management Mining equipment Manufacturing Customization of wheeled, tracked and flanged vehicles Equipment repair and rebuild Support: Consulting, research, Training and Financing

7 World-Leading Financial Services Sector 70 Equity raised (US $ Billions) Other Exchanges TSX Mining-related financings in Toronto compared to the total sum of all other miningrelated financings on all other exchanges

8 Ontario Mineral Exploration $$ Continuous world class discoveries Exploration Projects 45 Advanced Projects Exploration Spending: Ranked in the Top 5 worldwide Record Level Spending $1 Billion in 2011 Vast, world class discoveries of nickel, copper, platinum/palladium and gold Largest deposit of Chromite in North America

9 Significant Projects New mine projects Cliffs Chromite Noront Nickel Detour Gold Detour Lake Rubicon Minerals Phoenix Gold KGHM Victoria Project Goldcorp Cochenour Project

10 Significant Opportunities Far North RING OF FIRE One of the most significant mineral developments in Ontario in over a century, with economic impacts across the Province Several significant new mineral discoveries have been found in the Far North with discoveries identified continually Opportunities: Associated Mining infrastructure Mine and processing infrastructure Construction and operation of transportation infrastructure Energy Requirements

11 Current Claim Holdings Approx. 16,400 claim units, covering an area of 2630 km 2 21 companies currently hold claims in the Ring of Fire belt Area of most intense exploration (12-20 km long) Discoveries include, chromite, nickel, copper, zinc, gold and kimberlite. Chromite and nickel the most significant development opportunities at this time. Detailed view of discoveries follow on next slide August 13, 2012

12 Discoveries To Date Copper-zinc 8 deposits McFaulds 1 thru 8 Vanadium 1deposit Thunderbird Nickel-copper 1deposit Eagle s Nest* Chromium 5 deposits Black Thor* Big Daddy* Black Creek* Black Label Blackbird 1 & 2 Location of proposed mine developments

13 Future Developments Key companies include: Cliffs Natural Resources (chromite) and Noront Resources (nickel) both advancing through feasibility and EA Cliffs Natural Resources includes open pit mine, concentrator, all weather road infrastructure, and valued added ferrochrome refinery in its investment planning, capital investment estimated at $3.3B. Noront Resources includes underground mine, underground concentrator, and underground tailings storage in its investment planning, as well as access to all weather road infrastructure, capital investment estimated at $609M Infrastructure development will unlock additional development opportunities KWG Resources assessing opportunity for rail.

14 Key Project Components Mines and concentrators on site Transportation corridor, rail and all weather road options currently being assessed Ferrochrome refinery at Capreol, north of Sudbury, electricity requirements estimated at 300 MW per year Communities of Matawa Tribal Council are most directly impacted Includes 5 remote communities located in the Far North and 4 road access communities Infrastructure corridor and location of processing facilities would transect a broader group of First Nations communities as well as intersect with Metis and municipal interests

15 Where We Are In The Process Exploration expenditures to date: $208M to the end of 2011 $84M forecast for 2012 Companies undertaking feasibility studies Environmental assessments underway Community engagement and consultation initiated

16 Recent Announcements Ontario Has secured Cliffs commitment to locate their Ferrochrome Processing Facility (FPF) in Ontario As part of this Ontario committed to investing in transportation infrastructure, subject to EA, aboriginal consultation etc. Ontario also announced a suite of commitments to First Nations, including: regional environmental monitoring, regional infrastructure planning (local access, transmission, community based infrastructure), social supports (health, skills training etc.), resource revenue sharing with directly impacted communities Cliffs Natural Resources Decision to proceed to feasibility, total capital investment estimated at $3.3B Location for a new Ferrochrome Processing Facility (FPF), in Capreol north of Sudbury Noront Recently released feasibility study indicating total capital costs of $609M, assuming access to and use of all weather road subject to fees based on proportional usage

17 Benefits of the Ring of Fire Current Investment Proposals: Cliffs project alone is worth about $3.3B, including mine, transportation and a processing facility. The company estimates a total of 1,200 new direct jobs will be created. Noront estimates their project to represent a capital investment of about $730M; 700 construction jobs, 300 ongoing jobs. Benefits of New Mines and Infrastructure The project opens up economic opportunities in a remote and undeveloped area, especially for local First Nations communities. Any new infrastructure (community, social, etc.) will further benefit local communities.

18 Local & Regional Business Opportunities A broad range of local and regional business opportunities which will drive growth, increase investment and open up the North for future generations: As the major city nearest the Ring of Fire, Thunder Bay could strengthen its role as the northwest's health, education, training and social services centre. Thunder Bay could also grow its mining supply and services sector, which currently employs over 1,600 people at approximately 130 companies. The Municipality of Greenstone is strategically located at what could be a main junction of rail and road access to and from the Ring of Fire, which could result in the community becoming a major transportation hub. Timmins and North Bay already have well developed mining supply and services sectors, which combined account for $1.5 billion and employ about 7,000 people. Both of these communities could generate further economic growth from development of multiple Ring of Fire projects. Sudbury could further expand its thriving mining supplies and services sector due to the location of the processing facility. Nearby First Nation communities could benefit from direct employment opportunities, as well as economic partnership opportunities associated with this development.

19 First Nations Framework In order to ensure First Nations are prepared and enabled to participate in and benefit from developments in the Ring of Fire region, Ontario has committed to a series of initiatives that would see First Nations participating with the Federal government and Ontario in discussions on program development, implementation and delivery, including: Socio economic and community development supports Regional infrastructure planning Regional environmental monitoring; and Resource revenue sharing Ontario has called on the Federal government to participate in tripartite process with First Nations and Ontario to support these initiatives

20 Opportunities for Growth Record level development with room to grow in: exploration research; mine planning; automation; communications; environmental disciplines; deep mining; other areas vital to the success of modern mine operations around the world. join a world class cluster Ontario welcomes foreign investment to add diversification and world leading technologies to its supply base. Telecom and broadband networks are extensive, sophisticated and reliable.

21 Strategic Advantage to Access Other Ontario based companies can: Markets Be part of the affluent NAFTA market. 15 border crossings with the United States with a streamlined trans border transportation system. Bid on the government procurement contracts in the U.S. and Mexico including state owned corporations. Utilize tariff free access to South American markets Columbia, Peru, Panama, Chile Access provincial export support programs and services including trade representation throughout world...solid connections

22 Support Network Ontario Ministry of Northern Development & Mines (MNDM) Ontario Ministry of Economic Development and Innovation (MEDI) Ontario Mining Association (OMA) Ontario Prospectors Association (OPS) Mining Innovation, Rehabilitation and Applied Research Corporation (MIRARCO) Sudbury Area Mining Supply and Service Association (SAMSSA) Centre for Excellence in Mining Innovation (CEMI) Mining Association of Canada (MAC) Prospectors and Developers Association of Canada (PDAC) Natural Resources Canada (NRCan) rncan.gc.ca Canadian Association of Mining Equipment and Services for Export (CAMESE) The Northern Centre for Advanced Technology

23 Contact Us The latest information on our economy and business climate. Comprehensive profiles of Ontario communities. Province wide site searches of available industrial land and buildings. Liaising of site selection and community visits throughout the province. Contact with federal, provincial and municipal officials, as well as utilities, transportation firms and business facilitators. Ministry of Northern Development & Mines Trade, Investment and Strategic Sectors Unit Name: Todd Eastman Trade & Investment Specialist Tel: Name: Or Paul Bradette Trade & Investment Specialist Tel: Please visit