Results Based Plan 2012-2013

MINISTRY VISION

A Northern Ontario economy and provincial minerals sector that are healthy, competitive and sustainable.

MISSION STATEMENT

As the lead ministry for the North, the Ministry of Northern Development and Mines works to make Northern Ontario and the provincial minerals sector strong, healthy and prosperous.

MINISTRY OVERVIEW

As the regional ministry for Northern Ontario and the ministry responsible for the provincial mineral sector, the Ministry of Northern Development and Mines (MNDM) strives to make Northern Ontario and the provincial mineral sector strong, healthy and prosperous. By providing a northern perspective, the ministry supports provincial initiatives in the North and addresses unique regional circumstances.

The ministry leads and coordinates government programs aimed at growing the Northern Ontario economy, building strong northern communities and creating job opportunities in the North. Through a network of offices and strategic program and policy development, the ministry ensures northerners have access to government programs and services and a voice in government decisions affecting the North. The ministry is also co-leading the implementation of the government’s Growth Plan for Northern Ontario, 2011, a long-term strategy to support sustainable economic and population growth in the North.

As the sectoral ministry for the provincial minerals sector, the ministry supports a strong, sustainable mineral industry by promoting investment and exploration, by providing information to global clients on Ontario’s wealth of mineral resources and through the fair, effective and efficient administration of Ontario’s Mining Act. The Ministry is also the provincial authority in the delivery of geoscience information for all regions of the province, fosters collaboration and consultation with Aboriginal communities, administers Ontario’s diamond royalty and ensures safe, environmentally sound mineral development and rehabilitation of mining lands.

The ministry fosters a competitive business environment and supports economic and community development in Northern Ontario.  Economic development professionals specializing in forest products, mining, business and industry, biotechnology, manufacturing, telecommunications, e-business, transportation, energy, agriculture, tourism, and trade and investment marketing help municipalities, First Nations and businesses attract investment, pursue business opportunities, diversify local economies and build stronger northern communities.

The Northern Ontario Heritage Fund Corporation (NOHFC), which is chaired by the Minister of Northern Development and Mines, provides critical financial assistance to support business development, entrepreneurs, infrastructure investment, and job creation in Northern Ontario communities.

The ministry helps to sustain communities in Northern Ontario through strategic investments in infrastructure.  Its Northern Transportation Program works with other ministries and First Nation communities to expand and maintain the northern provincial highways system, roads in unincorporated areas, resource access roads and winter roads.

Provincial investment in the North's transportation, telecommunications and public infrastructure has also been coordinated through the Ontario Northland Transportation Commission (ONTC) and the Owen Sound Transportation Company (OSTC).  In March 2012, the ministry announced that it will be proceeding with the divestment of ONTC business lines to the private sector and terminating passenger rail service from Cochrane to Toronto. The ministry will implement new business models for key transportation services in northeastern Ontario including the Polar Bear Express train service between Cochrane and Moosonee and bus operations to communities currently served only by the ONTC.

To enhance mineral sector competitiveness, the ministry manages Ontario's mining lands, markets investment opportunities and supports mineral development. It administers the Ontario Mining Act to ensure fair access to Crown mineral rights and equitable management of mining lands.

The Ontario Geological Survey (OGS), which delivers a province-wide mandate through its Sudbury headquarters, is the provincial authority on Ontario’s geological foundation and provides geoscience information and services that foster a vibrant mineral sector and helps Ontario maintain its standing as a world geoscience leader.  Service delivery is supported through nine regional geoscience offices that provide access to information about Ontario’s geoscience and mineral resource assets. 

It also provides strategic geoscience baseline information required to identify Ontario’s groundwater aquifers, potential for non-renewable energy and sources of quality construction mineral resources, and to support the government’s groundwater protection priorities. This geoscience program also facilitates Aboriginal engagement and informed land-use planning decisions, which lead to sustainable community development.

The Mineral Development and Lands Branch encourages, promotes and facilitates the sustained economic development of the province’s mineral resources in an environmentally responsible manner and provides orderly and equitable processes ensuring public access to Crown mineral rights.

In 2010-11, the ministry established a Ring of Fire Secretariat to work and consult with Aboriginal Peoples, northern Ontarians and the mining industry to encourage responsible and sustainable economic development in the “Ring of Fire” region. The Ring of Fire initiative refers to one of the most promising development opportunities in northern Ontario in perhaps a century. Located in Ontario’s Far North, current estimates from one of the companies exploring in the area suggest the potential for decades of chromite production, as well as significant production of nickel, copper and platinum.

MNDM Strategic Priorities:

Government PrioritiesCreating Jobs and ProsperityBuilding Stronger CommunitiesImproving Quality of Life
Ministry PrioritiesMake Northerners with access to government programs and services.Provide Northerners with access to government programs and services.Generate new wealth and benefits by supporting Ontario's mineral exploration, mining, geoscience and forestry sectors.Promote a strong, safe and sustainable minerals industry by generating valuable geological information and by fair and consistent administration of Ontario's Mining Act.
Areas of FocusStrengthening the Northern EconomyInvesting in Northern InfrastructureMineral Sector Competitiveness

MINISTRY ORGANIZATION CHART

PUBLISHED RESULTS-BASED PLAN 2012-13

The Ministry of Northern Development and Mines carries out its mandate under three activities or categories: Ministry Administration, Northern Economic Development and Mines and Minerals.

Activity: Ministry Administration

Ministry Administration provides executive direction as well as strategic business and resource planning services to ensure the efficient and effective delivery of ministry programs.  It supports ministry operations through the provision of advice and services in the areas of human resources, business planning, accounting and administration, and professional support services such as legal and audit services.  It also provides core strategic support in the areas of corporate policy and communications.

Activity: Northern Economic Development

Through this activity, the ministry leads and coordinates government programs aimed at growing the Northern Ontario economy, building strong northern communities and creating job opportunities in the North.  The ministry also plays a key role in fulfilling the government’s commitments for strategic initiatives that could impact the North.

Under the banner of Northern Economic Development, the ministry delivers the following sub-activities.

  • Regional Economic Development
  • Transportation, Trade and Investment
  • Strategic Coordination and Planning
  • Northern Ontario Heritage Fund Corporation
  • Ontario Northland Transportation Commission and Owen Sound Transportation Company.

Regional Economic Development

A network of six integrated area teams (Sudbury, Thunder Bay, Sault Ste. Marie, Timmins, North Bay, and Kenora), with offices in 26 communities across the North, act as the focal point for the delivery of programs and services in the key economic sectors of the North. They work with communities and private sector clients to help them identify and facilitate economic development opportunities and develop proposals.  This integrated approach allows the ministry to effectively support economic development initiatives in the North by providing a wide range of products and services in a more focused approach to client service delivery.  Regional Economic Development staff also meet with Aboriginal communities and groups to promote programs and assist with strategic planning and the preparation of business plans for proposed projects.

Transportation, Trade and Investment

The ministry supports strategic development efforts in Northern Ontario, including marketing Northern Ontario's strengths and opportunities to the world, undertaking research and analysis, and supporting strategic investments in infrastructure through programs such as the Northern Highways Program, Local Roads Boards and Winter Roads. The ministry will also continue to work with partner ministries to increase public and private investment in the North’s transportation, telecommunications, and community infrastructure, and secure partnerships with other stakeholders.

In addition, the ministry promotes Northern Ontario by assisting Northern Ontario companies to grow and expand their business globally though collaborative international marketing, sales support services and lead generation. By working closely with companies and associations, the ministry increases direct trade, business expansion and foreign direct investment to the benefit of Northern Ontario. Other support services include programs like the Mining Supplies and Services Export Assistance Program. Sector priorities include forestry related bio-fuels and chemicals, resource based advanced manufacturing, ICT and business support services and mining and related supplies and services. By focusing on sectors that have the best opportunity to attract domestic and foreign direct investment and help Northern Ontario businesses grow and create employment, the ministry proactively identifies and promotes the benefits of growing businesses and/or establishing their businesses in Northern Ontario.

Northern Ontario’s strengths are matched with Canadian and international opportunities to help deliver economic prosperity to Northern Ontario. 

Strategic Coordination and Planning

This branch leads the development of strategic initiatives to advance economic development in Northern Ontario.  Working with other branches within NDD and the ministry, northern organizations and partner ministries, this branch brings forward northern input and impacts for consideration in government policy and program decisions. This work involves inter-ministry coordination, stakeholder engagement, research and monitoring of key economic indicators and program evaluation.

Several key economic development initiatives are delivered by this area including:

Northern Industrial Electricity Rate (NIER) Program

The NIER program is a three-year initiative that began in 2010 to help large industries in Northern Ontario improve their energy efficiency and sustainability. The program will help northern industries build and maintain a globally competitive advantage and, in turn, help protect and create jobs.

Growth Plan for Northern Ontario

The ministry is co-leading implementation of the Growth Plan for Northern Ontario, 2011, a 25-year plan released on March 4, 2011 to guide decision-making and investment planning in Northern Ontario.

The Growth Plan for Northern Ontario, 2011 was developed under the Places to Grow Act, 2005, and is the product of extensive engagement with northerners.

The plan will focus decisions that build an economy that is resilient and sustainable and leverages the strengths and human potential of northerners by providing them with more education and career opportunities. The Plan aims to strengthen the economy of the North by:

  • diversifying the region’s traditional resource-based industries;
  • stimulating new investment and entrepreneurship;
  • providing more education, training and career opportunities; and
  • nurturing new and emerging sectors with high growth potential.

In 2012-13, the ministry will continue to work with partner ministries, other orders of government, northern municipalities and associations, Aboriginal communities and organizations, Francophone organizations, business and industry, the research and education sectors and other non-government organizations to advance the Growth Plan’s implementation.

Northern Ontario Heritage Fund

Through its programs, the Northern Ontario Heritage Fund Corporation (NOHFC) is working with northern entrepreneurs, companies and business organizations to address northern priorities, while continuing to support vital infrastructure and community development projects that enhance quality of life and stimulate economic activity. Efforts will continue under the NOHFC’s programs to make strategic investments that stimulate private sector job creation, assist business start-ups, provide development opportunities for northern youth, support energy conservation and power generation initiatives, and assist innovation and emerging technologies that will grow the northern economy. 

Ontario Northland Transportation Commission and Owen Sound Transportation Company

The Ontario Northland Transportation Commission (ONTC) and Owen Sound Transportation Company (OSTC) are agencies of the province reporting to the Ministry of Northern Development and Mines. Each receives annual operating and capital subsidies that support the delivery of transportation and telecommunications services.

With respect to ONTC, a transition board has been appointed to begin the divestment of the commission.  The board has been given a mandate to: ensure the ongoing operation of the Polar Bear Express service; divest commercially valuable assets such as rail freight, rail refurbishment and Ontera telecommunications; begin the process of cancelling the Northlander train service that runs between Toronto and Cochrane – to be replaced with enhanced bus service; tender bus services for other operators to service existing bus routes; and consolidate the ferry service between Moosonee and Moose Factory with other provincial ferry services.

The Ring of Fire:

The Ring of Fire opportunity has the potential to be one of the most significant mineral developments in Ontario in over a century, with economic impacts across the Province.
Mineral production potential is on the scale of historic world class mining areas such as Sudbury, Timmins, Kirkland Lake and Red Lake, all of which have seen mineral development spanning a century of production. 

Northern Ontario will benefit from mining the mineral deposits in the Ring of Fire area, which will create jobs and better position the northern economy and Aboriginal communities for future growth.  Proposed mine developments currently under consideration in the Ring of Fire area are expected to create more than 1,500 permanent jobs once the mines are in full production.  Additional jobs will be created in the mining service and supply sector.

The government is building partnerships with northern Ontarians, Aboriginal communities and industry to maximize the benefits and overcome the challenges associated with developing the Ring of Fire.

Location of Ring of Fire Area:

 

Activity: Mines and Minerals

The ministry supports a strong and sustainable mineral industry by promoting investment and exploration, providing information to global clients on Ontario’s wealth of mineral resources, and through the fair, effective and efficient administration of Ontario’s Mining Act. There are three sub-activities:

  • Geoscience Information and Investment Marketing;
  • Administration of the Mining Act; and
  • Aboriginal Engagement.

Geoscience Information and Investment Marketing

Key elements of this sub-activity are the collection and dissemination of geoscience information to attract and guide mineral sector investment, as well as inform a broad range of government policy priorities. 

Geoscience Information

This area provides foundational geoscience information that forms the framework for assessing Ontario’s mineral potential - a key element in guiding private sector investment decisions. Services include province-wide geological mapping, online 24-7 access to geoscience information and expert geological advisory services across the province. Geoscience expertise also supports other government priorities, such as groundwater aquifer mapping as part of drinking water protection efforts, and identifying new industrial and energy development opportunities.

Investment Marketing

Investment Marketing is focused on mineral sector marketing and investment attraction. Key elements include: domestic and international marketing of investment opportunities, and expert geological advisory services in field offices across the province that help to create networks and foster collaboration between the government, mineral industry stakeholders and Aboriginal communities and economic development sectors.

Specific emphasis has been placed on Ontario’s emerging diamond sector in developing value-added opportunities and administering Ontario’s diamond royalty to create a competitive advantage for Ontario.

Administration of the Mining Act

This program area administers the Ontario Mining Act to ensure sustainable and responsible development of Ontario's mineral resources. This involves ensuring equitable public access to Crown mineral rights, fair and efficient management of Ontario's mining lands, and ensuring safe, environmentally-sound mineral development and rehabilitation of mining lands.

As part of this mandate, the Ministry is implementing changes to modernize the Mining Act to ensure that mineral exploration and development in Ontario is undertaken in a manner that promotes a balanced approach that benefits all Ontarians, while modernizing the way mining companies stake and explore their claims to be more respectful of private landowners and Aboriginal communities. The Ministry assists industry with their exploration, advanced exploration or new mine development projects by providing information and advice on permitting requirements and facilitating consultation with the public and Aboriginal communities.

Rehabilitation of Crown Sites

The Abandoned Mines Rehabilitation Program invests in the rehabilitation of abandoned mine sites on Crown-held lands to ensure public safety, improve the environment and make these lands available for productive use. Key priorities are to reduce the Crown’s liability on these sites, enhance public safety and environmental protection.

Aboriginal Engagement

Aboriginal Engagement focuses on establishing and maintaining key Aboriginal and community relationships, provision of advisory services to assist communities in accessing ministry staff, resources and programs for mineral development and northern economic development assistance. Program staff work with Aboriginal communities to meet duty to consult obligations ensuring that activities occur in a manner that is consistent with the Crown’s obligation concerning Aboriginal and treaty rights.

Performance Measures for the Ministry of Northern Development and Mines

Activity - Northern Economic Development
Sub-activityPerformance MeasureStatement of Result
Northern Ontario Heritage Fund Corporation (NOHFC)Investment dollars leveraged from other partnerThe target ratio of investment dollars leveraged from other partners is 1:3 leveraged dollars in 2012-13.
Number of full-time jobs that are being created or sustainedNOHFC funding is expecting to help create or retain 3,500 full time jobs in 2012-13.
Activity – Mines and Minerals
Sub-activityPerformance MeasureStatement of Result
Geoscience Exploration and InvestmentOntario's ranking in Canada for new investment in exploration and miningOntario to maintain its standing as the leading jurisdiction in Canada for new investment in mining and exploration.
Geoscience data and information required to support Far North land-use decisionsCollection of new, 1st generation, regional framework geological data will be at least 100,000 km2 to inform land-use planning decisions for Ontario’s Far North.

STATUTES ADMINISTERED

Mining Act

This Act provides for the regulation of mineral exploration and development activities in Ontario.  The purpose of this Act is to encourage prospecting, staking and exploration for the development of mineral resources in a manner consistent with the recognition and affirmation of existing Aboriginal and treaty rights in section 35 of the Constitution Act, 1982, including the duty to consult, and to minimize the impact of these activities on public health and safety and the environment.

Ministry of Northern Development, Mines and Forestry Act

This Act establishes the Ministry of Northern Development and Mines.  It recognizes the different conditions and special needs existing in Northern Ontario and the desire of northern residents to have a stronger voice in government.  The Act defines the ministry’s function to coordinate government activities and initiate policies and programs for the government in Northern Ontario and on behalf of the minerals industry.  At this time, the Act retains “Forestry” in its title even though responsibilities for the forestry sector were transferred to the Ministry of Natural Resources in 2011.  Order-in-Council 1571/2011 identifies the Minister of Northern Development and Mines as presiding over the Ministry of Northern Development and Mines.

Northern Ontario Grow Bonds Corporation Act, 2004

This Act established the Grow Bonds Corporation with the objectives of fostering business development in Northern Ontario, by issuing bonds to raise funds to be used to provide loans and debt financing to eligible businesses in Northern Ontario.

Northern Ontario Grow Bonds Corporation Repeal Act, 2011 (into force on May 1, 2012)

This Act dissolves the Northern Ontario Grow Bonds Corporation, following wind-up of its operations.

Northern Ontario Heritage Fund Act

This Act establishes a corporation to promote economic development and diversification in Northern Ontario, through the use of funds provided for that purpose.  The Northern Ontario Heritage Fund Corporation operates as an Operational Service Agency of the province.

Northern Services Boards Act

This Act, passed in 1999, replaces the former Local Services Boards Act.  The Act provides choice and flexibility to northern residents in the establishment of service delivery mechanisms that recognize the unique circumstances of Northern Ontario and allow increased efficiency and accountability in area-wide service delivery.

The first part of the Act allows inhabitants of territories without municipal organization to establish legally-constituted local services boards to act on their behalf, and to raise funds for certain basic community services to improve the quality of life.  The second part of the Act provides for the establishment of area service boards to consolidate delivery of six core services: child care, social assistance, public health, social housing, land ambulance service and homes for the aged as well as a variety of optional services.  An area services board would have taxation authority in the board area to recover service costs.

Ontario Northland Transportation Commission Act

This Act established the Ontario Northland Transportation Commission (ONTC) for the purposes of providing transportation and telecommunications services to Northern Ontario.  The Ontario Northland Transportation Commission operates as an Operational Enterprise Agency of the province.

Professional Geoscientists Act, 2000

This Act established the Association of Professional Geoscientists of Ontario as the governing body for geoscientists, and empowers the association to establish standards of professional practice for persons who wish to be recognized as professional geoscientists.
 

AGENCIES, BOARDS AND COMMISSIONS

Northern Ontario Grow Bonds Corporation

The Northern Ontario Grow Bonds Corporation is an Operational Enterprise Agency of the province.  The Corporation, in cooperation with the Ontario Financing Authority, issued provincially guaranteed bonds to northern residents.  Proceeds from the sale of bonds were used to provide loans to northern businesses that invested in capital projects, resulting in the creation of new jobs in the North.  The pilot program ended in 2011 and the Corporation will be dissolved on May 1, 2012.

Northern Ontario Heritage Fund Corporation

The Northern Ontario Heritage Fund Corporation is an Operational Service Agency of the province.  It was established in 1988 to advise and make recommendations on any matter relating to the growth and diversification of the economy of Northern Ontario, and to promote and stimulate economic initiatives.

Ontario Northland Transportation Commission

The Ontario Northland Transportation Commission is an Operational Enterprise Agency of the province providing transportation and telecommunication services in Northern Ontario.  Its activities include rail freight and passenger services, telecommunications, bus operations, and marine operations.  In March 2012, the ministry announced that it will be implementing a new approach to regional transportation in northeastern Ontario by winding down the ONTC.  It will ensure the ongoing operation of the Polar Bear Express service; divest commercially valuable assets such as rail freight, rail refurbishment and Ontera telecommunications; begin the process of cancelling the Northlander train service that runs between Toronto and Cochrane – to be replaced with enhanced bus service; tender bus services for other operators to service existing bus routes; and consolidate the ferry service between Moosonee and Moose Factory with other provincial ferry services.

Owen Sound Transportation Company, Limited

The Owen Sound Transportation Company, Limited (OSTC) is an Operational Enterprise Agency of the province delivering marine (vehicle and passenger) services from Tobermory to South Baymouth aboard the M.S. Chi-Cheemaun.  The OSTC also operates the Pelee Island ferry year-round by contract with the Ministry of Transportation.

TRANSFER PAYMENTS TO AGENCIES

2012-13
Estimates
$
Agency2011-12
Estimates
$
2011-12
Interim Actuals
$
2010-11
Actuals
$
34,500,000
65,500,000
Northern Ontario Heritage Fund Corporation
- Operating
- Capital
34,500,000
65,500,000
34,500,000
65,500,000
34,500,000
55,500,000
27,948,000
31,519,000
Ontario Northland Transportation Commission
   - Operating
   - Capital
32,100,000
21,625,000
75,647,000
23,010,000
43,600,000
22,567,406
1,800,000
3,670,000
The Owen Sound Transportation Company, Limited
   - Operating
   - Capital
800,000
2,047,000
1,000,000
2,047,000
800,000
1,402,814

MINISTRY FINANCIAL INFORMATION

Table 1: Ministry Planned Expenditures 2012-13
 Ministry Planned Expenditures ($M) 2012-13
Operating436.1
Capital335.2
Total771.3
Table 2: Ministry Planned Expenditures by Program Name 2012-13
Program/Activity NameMinistry Planned Expenditures ($M)
Ministry Administration12.4
Northern Development Program590.3
Mines and Minerals Program60.1
Net Consolidations108.5
Total771.3