Published Plans and Annual Reports 2015-16

PART I: 2015-16 PUBLISHED RESULTS-BASED PLAN

MINISTRY OVERVIEW

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 Contribution to Priorities and Results

As the regional ministry for Northern Ontario and the ministry responsible for the provincial minerals sector, the Ministry of Northern Development and Mines (MNDM) strives to make Northern Ontario and the provincial minerals 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 sustainable 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.

Chaired by the Minister of Northern Development and Mines, the Northern Ontario Heritage Fund Corporation (NOHFC) provides funding programs designed to encourage partnerships with northerners to create jobs and strengthen the northern economy by supporting northern economic infrastructure development; enhancing economic development capacity; stimulating commercialization, innovation and productivity; encouraging new business development and expansion; and attracting and retaining talent.

The ministry invests in the North’s transportation and public infrastructure through the Ontario Northland Transportation Commission (ONTC) and the Owen Sound Transportation Company (OSTC).  Transformation of the ONTC is currently underway with a focus on long-term sustainability of its transportation services and infrastructure.  MNDM also provides strategic planning for northern infrastructure, working with other ministries, municipalities and Aboriginal communities to expand and maintain the northern provincial highways system, roads in unincorporated areas, resource access roads and winter roads.

As the sectoral ministry for the provincial minerals sector, the ministry helps build a strong, safe and sustainable Ontario by promoting mineral sector exploration and investment guided by Ontario’s Mineral Development Strategy.

The ministry serves as the provincial authority in the delivery of baseline geoscience information for all regions of the province, encourages and facilitates Aboriginal participation in Ontario’s economy, administers Ontario’s Mining Act and diamond royalty, and ensures safe, environmentally sound mineral development and rehabilitation of mining lands.

MNDM’s Ring of Fire Secretariat works and consults with Aboriginal peoples, northerners and the mining industry to encourage responsible and sustainable economic development in the “Ring of Fire” region. Located 540 kilometers northeast of Thunder Bay, the Ring of Fire is one of the most significant mineral regions in the province.  The area has mineral potential known to be worth $60 billion and includes the largest deposit of chromite – a key ingredient of stainless steel – ever discovered in North America.  The Ring of Fire also holds the potential for significant production of nickel, copper and platinum.  

MNDM Strategic Priorities

Ontario’s Priorities

• Modernized Infrastructure and Transportation Networks
• Supportive and Dynamic Business Environment

MNDM Focus

• Investing in Northern Infrastructure
  • Support northern regional and local infrastructure needs.
  • Provide northerners with access to government programs and services.
• Strengthening the Northern Economy
  • Helping Northern Ontario create and sustain jobs to promote economic growth.
  • Encourage, promote and facilitate the sustained economic benefit of Northern Ontario's industrial sector.
• Mineral Sector Competitiveness
  • Promote a strong, safe and sustainable Ontario by generating and maintaining a geoscience baseline and by fair and consistent administration of Ontario’s Mining Act.
  • Generate new wealth and benefits by supporting Ontario’s minerals development sector.

Ministry Activities and Programs

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

ACTIVITY: MINISTRY ADMINISTRATION

Ministry Administration provides executive direction and strategic business and resource planning services to ensure the efficient and effective delivery of ministry programs.  It supports ministry operations through 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 provides core strategic support in the areas of corporate policy and communications.

ACTIVITY: NORTHERN ECONOMIC DEVELOPMENT

The ministry leads and coordinates government programs aimed at modernizing infrastructure and transportation networks, driving economic growth, and supporting a dynamic business climate in Northern Ontario.

Under the banner of Northern Economic Development, the ministry delivers the following eight programs:

• Northern and Regional Policy Interests;
• Northern Transportation Networks;
• Business Development and Support;
• ONTC Commercial Services;
• Industrial Energy Support;
• Industrial Support – Special Assistance;
• Community Support; and
• Unincorporated Area Support.

Program Descriptions

1. Northern and Regional Policy Interests: undertake research, collect and analyze regional information and input to support the development and implementation of strategic policies and programs which support Northern Ontario’s economy; and strengthen and diversify Northern Ontario’s communities and businesses.
2. Northern Transportation Networks: plan and deliver an efficient core transportation network to provide northerners with modes of transportation infrastructure that support economic development.
   
   The ministry supports strategic investments in infrastructure through programs such as the Northern Highways Program, Local Roads Boards, Winter Roads and the Ontario Northland Polar Bear Express service.  The ministry continues to work with partner ministries to increase public and private investment in the North’s transportation infrastructure, and secure partnerships with other stakeholders.
3. Business Development and Support: promote and deliver programs, services and funding to assist business start-up, expansion and innovation efforts.
   
   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 serve as the focal point for private sector clients and northern stakeholders for the delivery of programs and services in the existing and emerging priority economic sectors identified in the Growth Plan for Northern Ontario.
   
   In addition, the ministry promotes Northern Ontario by assisting local companies to grow and expand their business globally through collaborative international marketing, sales support services and lead generation.
   
   The Northern Ontario Heritage Fund Corporation (NOHFC) also provides investments in Business Development and Support projects across the North (see Agencies below).
4. ONTC Commercial Services: support the cost-competitive delivery of ONTC commercial activities in rail freight, motor coach and refurbishment.
5. Industrial Energy Support: support the development of industrial energy plans through the administration of the Northern Industrial Electricity Rate (NIER) Program, targeted toward major industrial users to ensure more competitive energy pricing.
   
   On April 7, 2015, Ontario committed to ongoing funding of up to $120 million annually for the NIER Program.  The government will also undertake a review on the efficiency and effectiveness of the program and options for a sustainable approach.
6. Industrial Support – Special Assistance: respond to companies that need special assistance and may not be eligible for the government’s existing business support programs to help them continue to make vital contributions to job creation and economic prosperity in the North.
7. Community Support: promote and deliver programs, services and funding to build community infrastructure and assist communities in undertaking economic development projects.
   
   Area team staff work with northern municipalities and Aboriginal communities to help to identify, facilitate and develop economic development opportunities, projects and initiatives.
   
   The Northern Ontario Heritage Fund Corporation (NOHFC) also provides investments in Community Support projects across the North (see Agencies below).
8. Unincorporated Area Support: provide funding and advice to support community services in unincorporated areas.

Agencies

The above programs include the activities of three operational agencies for which MNDM is responsible:

• Northern Ontario Heritage Fund Corporation (NOHFC)
• Ontario Northland Transportation Commission (ONTC), and
• Owen Sound Transportation Company (OSTC).

Northern Ontario Heritage Fund Corporation

The Northern Ontario Heritage Fund Corporation (NOHFC) is positioned to continue its role as a key driver of Northern Ontario’s significant growth potential.  Through its programs, the NOHFC works with northern communities, entrepreneurs, not-for-profit, 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. 

The NOHFC offers five programs that foster strategic and focused investment to support Northern Ontario’s economic prosperity and sustainability:

1. Strategic Economic Infrastructure Program;
2. Community Capacity Building Program;
3. Northern Innovation Program;
4. Northern Business Opportunity Program;
5. Northern Internship Program.

NOHFC programs focus on the growth of existing and emerging sectors identified in the Growth Plan for Northern Ontario and the government’s key priority of helping communities prosper.

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 services in northeastern Ontario.

The government is moving forward to ensure sustainable employment, continued economic growth, and a strong transportation network in northeastern Ontario by transforming the Ontario Northland Transportation Commission. 

The province will continue to operate the motor coach, Polar Bear Express, freight rail and refurbishment services of the ONTC as a government-owned transportation company.  In 2015-16, transformation efforts will focus on ensuring the long-term sustainability of the ONTC so that it can provide vital transportation services and infrastructure that support economic growth in northeastern Ontario.

The OSTC continues to provide safe, reliable and efficient marine transportation services, delivered in northeastern Ontario.  Vehicle and passenger services are provided by the M.S. Chi-Cheemaun ferry between the Bruce Peninsula and Manitoulin Island, and by the Niska 1 ferry between Moosonee and Moose Factory.

Growth Plan for Northern Ontario

With the Ministry of Municipal Affairs and Housing, MNDM 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 strategic 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 guides initiatives to build an economy that is resilient and sustainable and leverages the competitive strengths and human potential of northerners by providing them with more education, training and career opportunities. The Plan aims to strengthen the economy of the North by:

• Attracting investment and business growth in Northern Ontario;
• Diversifying the North’s economic base;
• Supporting education and skills development of the North’s workforce;
• Increasing the involvement of Aboriginal peoples in the northern economy;
• Improving the connectivity of the northern population through information technologies.

Implementation of the Growth Plan is a collective effort of various partners and participants including governments, industry and business, municipalities, Aboriginal communities and organizations and other public and private sector institutions. 

In 2015-16, progress will continue with a number of key initiatives under the Growth Plan including:  the Northern Ontario Multimodal Transportation Strategy, led by the Ministry of Transportation; the continued work of the Northern Policy Institute; and the alignment of the new NOHFC programs with the Northern Growth Plan priorities.

The Northern Policy Institute, an independent not-for-profit organization, provides a northern perspective, grounded in quality research, to serve as a guide for public policy development to help inform decisions of governments, municipalities, communities, First Nations, businesses and industries. 

ACTIVITY: MINES AND MINERALS

The ministry supports a strong and sustainable minerals development 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 six programs under this activity:

• Regulatory Administration of the Mining Act;
• Geoscience Information;
• Mineral Development Investment and Opportunity;
• Aboriginal Relations;
• Ring of Fire Aboriginal Relations; and
• Ring of Fire Infrastructure Development.

Program Descriptions

1. Regulatory Administration of the Mining Act: administer the Mining Act through regulatory tools that modernize and sustain mineral exploration and mining in socially and environmentally responsible ways.
   
   As part of this mandate, the ministry is continuing to implement 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.  Phase 3 of the Mining Act Modernization initiative will transform and modernize how mineral tenure is administered in Ontario by implementing an integrated, client-driven electronic system that enables clients to acquire and manage Crown lands for mineral development.
   
   The ministry also invests in the rehabilitation of abandoned mine sites on Crown-held lands to ensure public safety, improve the environment, make the lands available for productive use and reduce the Crown’s liability on these sites.
2. Geoscience Information: collect and disseminate geoscience information to attract and guide mineral sector investment and inform government resource development and management.
   
   Geoscience services support economic development through: source water protection; mineral-, energy-, and groundwater-resource related development opportunities; land use planning; and safeguarding public health and safety related to geological hazards.           
3. Mineral Development Investment and Opportunity: research, develop and promote strategic investment opportunities to influence investment-related policies and decisions that support Ontario’s mineral competitiveness.
   
   This area ensures Ontario receives a fair share of the value of mineral resources extracted from the province, identifies strategic investment opportunities and influences policy issues that support Ontario’s mineral competitiveness.  It also champions the growth and development of a vibrant diamond mining, cutting and polishing industry in Canada.
   
   The ministry introduced its first-ever Mineral Development Strategy in 2006.  It provided a foundation for sustainable management and stewardship of mineral resources in Ontario.  In March 2015, the ministry launched a discussion paper on mineral development and is seeking public input to renew Ontario’s Mineral Development Strategy.
4. Aboriginal Relations: provide information and facilitate effective stakeholder relationships and partnerships to strengthen Aboriginal participation in Ontario’s economy including mineral sector opportunities.
   
   This area encourages and enhances the capacity for Aboriginal communities to participate in, and take advantage of, mineral resources and other economic development opportunities, while ensuring the ministry meets its constitutional and legal obligations.  It develops and sustains productive and effective relationships among government, Aboriginal communities, industry, municipalities and other partners in support of greater economic development opportunities that benefit Aboriginal peoples.
5. Ring of Fire Aboriginal Relations: develop and implement a collaborative approach with Aboriginal communities and the private sector to better enable participation and benefits from Ring of Fire mining and related development.
   
   In March 2014, the Province reached a landmark framework agreement with Matawa-member First Nations to move forward with a negotiation process on a community-based regional approach to development in the Ring of Fire.  The agreement ensures First Nations and Ontario can work together to advance Ring of Fire opportunities, including regional long-term environmental monitoring and enhanced participation in environmental processes, resource revenue sharing, economic supports and regional and community infrastructure.
6. Ring of Fire Infrastructure Development: in August 2014, the province announced the establishment of the ROF Infrastructure Development Corporation to bring First Nations, industry and the provincial and federal governments together to create partnerships and facilitate investment decisions in strategic transportation infrastructure in the Ring of Fire area.
   
   The not-for-profit corporation has an interim board of four Ontario public servants.  As participation in the corporation evolves, the Board of Directors will be broadened to include membership from First Nations and industry partners.  In its mature state, the corporation will be in a position to advise on crucial infrastructure investment decisions, including how to best utilize Ontario’s $1 billion dollar commitment to Ring of Fire infrastructure.
   
   The ministry will also continue its efforts to ensure effective and efficient processes for coordination and delivery of environmental assessments, permitting and approvals across provincial ministries and with the federal government.  Work will continue with regional and local economic development organizations to identify service delivery and business development opportunities and ensure that benefits from investments in Ontario’s resources are maximized through value added activity.

HIGHLIGHTS OF 2014-15 ACHIEVEMENTS

Some of the key ministry achievements from 2014-15 include:

• The establishment of a Regional Framework Agreement with the nine Matawa-member First Nations to support a community-based negotiations process for development of the Ring of Fire;
• Ongoing transformation of the ONTC’s business lines to ensure the effectiveness, efficiency, and sustainability of its core transportation services in northeastern Ontario;
• Establishment of the ROF Infrastructure Development Corporation to foster collaboration among mining companies, First Nations and the federal and provincial governments with respect to infrastructure development in the Ring of Fire.

Please refer to Appendix 1: 2014-15 Annual Report, for further details on the ministry’s 2014-15 achievements. 

The following are the ministry’s performance targets for 2015-16: 

• Activity - Northern Economic Development
  • Sub-activity
    • Northern Ontario Heritage Fund Corporation (NOHFC)
      • Performance Measure
        • Investment dollars leveraged from other partners
          • Statement of Result
            • The target ratio of investment dollars leveraged from other partners is 1:3 leveraged dollars in 2015-16.
        • Number of full-time jobs that are being created or sustained
          • Statement of Result
            • NOHFC funding is expecting to help create or retain 3,500 full time jobs in 2015-16.
• Activity – Mines and Minerals
  • Sub-activity
    • Geoscience Exploration and Investment
      • Performance Measure
        • Ontario's ranking in Canada for new investment in exploration and mining
          • Statement of Result
            • Ontario 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 decisions
          • Statement of Result
            • Collection of new, first generation, regional framework geological data will be at least 100,000 km2 to inform land-use planning decisions for Ontario’s Far North.

Ministry Organizational Chart

• Minister of Northern Development and Mines
  • Parliamentary Assistant
  • Deputy Minister
    • Communications Services Branch
    • Corporate Policy Secretariat
    • Ring of Fire Secretariat
    • Legal Services Branch (provided by the Ministry of the Attorney General)
    • Corporate Management Division
      • Business Planning
      • Controllership
      • Human Resources
      • Audit Services
    • Mines and Minerals Division
      • Mineral Development and Lands
      • Ontario Geological Survey
      • Strategic Services
      • Aboriginal Relations
    • Northern Development Division
      • Regional Economic Development
      • Strategic Coordination and Planning
      • Transportation, Trade and Investment
      • Agencies (NOHFC, ONTC, OSTC)

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 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 services to Northern Ontario.  The Ontario Northland Transportation Commission operates as an Operational Enterprise Agency of the Province.

Professional Geoscientists Act

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 (ABCs)

Northern Ontario Heritage Fund Corporation

The Northern Ontario Heritage Fund Corporation is a statutory corporation established under the Northern Ontario Heritage Fund Act.  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.  The Corporation is a funding organization that provides loans and grants to stabilize, diversify and foster the economic growth of Northern Ontario. 

The Corporation is an Operational Service Agency of the Province, and its directors are appointed by Minister’s prerogative Order in Council.  The Minister is the Chair of the Board of Directors.

Ontario Northland Transportation Commission

The Ontario Northland Transportation Commission (“ONTC”) is a statutory corporation established under the Temiskaming and Northern Ontario Railway Act, 1902 (Ontario) and continued under the Ontario Northland Transportation Commission Act.

In April 2014, the province announced that it will continue to operate the motor coach, Polar Bear Express, rail freight, and refurbishment services of the ONTC as a government-owned transportation company. 

The ONTC is an Operational Enterprise Agency of the Province, and its directors are appointed by the Lieutenant Governor in Council Premier’s prerogative Order in Council. 

Owen Sound Transportation Company, Limited

The Owen Sound Transportation Company, Limited (OSTC) is a share capital corporation incorporated pursuant to the Business Corporations Act (Ontario).  The OSTC delivers marine (vehicle and passenger) services from Tobermory to South Baymouth aboard the M.S. Chi-Cheemaun, and between Moosonee and Moose Factory Island using the M.V. Niska 1. The OSTC also operates the Pelee Island ferry seasonally (with air service in the winter) by contract with the Ministry of Transportation.

The OSTC is an Operational Enterprise Agency of the Province.  Its directors are appointed by Minister’s appointment letter.  The Minister is the sole shareholder of the OSTC.

Detailed Financial Information

MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Table 2: Combined Operating and Capital Summary by Vote

* Estimates for the previous fiscal year are re-stated to reflect any changes in ministry organization and/or program structure.  Interim actuals reflect the numbers presented in the 2014 Ontario Budget.

Transfer Payments to Agencies

APPENDIX: 2014-15 ANNUAL REPORT                

2014-15 ACHIEVEMENTS

To support new initiatives and existing ministry programs, the government, through the

Ministry of Northern Development and Mines (MNDM), projects to have invested over $1.3 billion in the North and in Ontario’s mineral sectors in 2014-15.

RING OF FIRE

The Ring of Fire is a geologically rich area of mineral deposits in the far north of Ontario. It is estimated to have mineral potential believed to be worth $60 billion and one of the largest known chromite deposits in the world. The Ring of Fire presents a multi-generational economic opportunity for the province with the potential of chromite production, as well as production of nickel, copper and platinum.

The Ring of Fire has tremendous potential, both locally and nationally, to spur economic development, create thousands of jobs and significantly strengthen Ontario’s and Canada’s economy for years to come.

There are 20 companies/individuals who hold active mining claims in the Ring of Fire region.  MNDM estimates that $368 million was spent on exploration in the Ring of Fire between 2002 and 2014.

In April 2015, Noront Resources acquired Cliff’s Natural Resources’ chromite properties, making it the largest owner of claims in the region—approximately 65 per cent of the total claims in the Ring of Fire. KWG Resources also maintains significant chromite interests in the region. Noront has started the EA process for development of its Eagles Nest nickel project.  They have indicated that Eagles Nest project will continue to be a development priority. 

The Ring of Fire represents an opportunity for all of Ontario that will make significant, positive and permanent changes to the North’s socio-economic fabric and physical landscape. The scale of investment anticipated would impact the entire province, and be a significant regional economic development driver for Northern Ontario.

Communities across the North would experience economic growth, infrastructure development and see value-added manufacturing opportunities, such as mineral processing, mining supplies and services.  It would also have a positive impact on the financial services sector in Toronto.

Given the complexities and challenges of such a wide-scale development, a dedicated branch, the Ring of Fire Secretariat, was created in 2010 to ensure that multi-ministry, agency and stakeholder initiatives are coordinated and undertaken in a manner consistent with Ontario’s vision of a prosperous North and continuing commitment to balanced, socially and environmentally sustainable mineral development that benefits all Ontarians.

The Ring of Fire Secretariat is the lead for the proposed Ring of Fire development.  It coordinates Ontario’s approach to the complex phases of the development, including key elements such as transportation infrastructure needs, First Nations social and economic development, skills and capacity building, enhanced participation in EA processes and the participation of Aboriginal communities in the development process.

The Ring of Fire is located in an area of the province that has never before seen any development aside from small scale developments to support the First Nation reserves scattered throughout the region. In July 2013, the Province began community-based regional negotiations with Chiefs of the Matawa Tribal Council.  In November 2013, Ontario also announced that a development corporation would be created to bring together industry, First Nations and the provincial and federal governments, to lead the strategic transportation infrastructure development for the Ring of Fire region.

In 2014, significant progress was made including:

• Establishing the ROF Infrastructure Development Corporation which is structured to bring together the divergent interests of key mining companies, First Nations and the provincial and federal government;
• A $1 billion commitment to develop transportation infrastructure in the region;
• Signing of the landmark Regional Framework Agreement with the Matawa-member First Nations, which provides the pathway for Ontario and First Nation communities to work together to advance Ring of Fire opportunities.

On March 1, 2015 the ministry also announced a joint investment with the federal government of more than $785,000 to four of the remote Matawa-member First Nations to work together and complete a regional community service corridor study. The study supports Ontario’s plan to drive development in the Ring of Fire and ensure the tremendous potential of the region can be realized for First Nations, Ontario and for Canada.

Ontario remains committed to working with any and all interested parties on opportunities presented by responsible development of the Ring of Fire.

ENGAGEMENT WITH ABORIGINAL COMMUNITIES

Throughout 2014-15, the ministry continued to ensure the full participation of First Nation communities in the Ring of Fire by providing:

• financial support for capacity building
• access to the necessary technical and legal advice
• support for land use planning
• skills training
• social investments, and
• by advancing the Framework Agreement with the Matawa member First Nations.

The Regional Framework Agreement was signed by the Province and the Matawa-member First Nations, on March 26, 2014. This agreement, signed by all nine Matawa-member First Nations, is crucial to advancing more detailed discussions on how Matawa-member First Nations actively participate in, and benefit from, Ring of Fire developments.

In July 2014, the Premier and Minister of Northern Development and Mines met with the nine Matawa-member Chiefs to speak about Ontario’s commitment to establishing the ROF Infrastructure Development Corporation (ROFIDC).

Since November 2014, four regional negotiation meetings have been held.  Discussions have progressed on key environment-related issues, and have led to agreement to establish joint working groups to advance issues related to the regional environmental monitoring, regional infrastructure and, community social and economic development supports.

In 2014-15, the Ring of Fire Secretariat committed $5 million to advance discussions and support community based engagement in the negotiation process, the Matawa-member negotiating team and related administrative supports.

Since 2011, the Ontario government has contributed more than $17.87 million directly to communities and the Matawa First Nations Management for socio-economic supports through a variety of ministries, as well as other supports. In 2014-15 this included:

• The Ministry of Training, Colleges and Universities (TCU) Aboriginal Skills Advancement Pilot Program for clients of Kikenomaga Kikenjigewen Employment and Training Services  (KKETS), the employment skills training organization servicing Matawa-member communities. In 2014-15 TCU invested $3 million in this program. A total of 101 participants have completed the program.
• The Ministry of Children and Youth Services, Aboriginal Children and Youth Mental Health Workers initiatives. A minimum of $375,000 has been directed in support of Ring of Fire First Nations communities.
• The Ministry of Natural Resources in its delivery of community-based land use planning under the Far North Act; MNDM also supported additional values collection in southern Ring of Fire First Nations.
• The Ministry of Aboriginal Affairs through the provision of $50,000 in funds to support a community readiness strategy aimed at strengthening the supports in place for vulnerable individuals that may wish to enter the labour market.

To date, more than 1,950 First Nations clients have received supports through skills and training programs in support of Ring of Fire development.

The ministry acknowledges that some Mushkegowuk member First Nations may also be impacted by potential Ring of Fire developments and since 2011, committed $420,600 to the Mushkegowuk Council to directly support capacity building for participation in the EA processes. This is in addition to the $198,078 provided by Aboriginal Affairs and Northern Development Canada.

The ministry also recognizes the importance of working with Aboriginals across Ontario as part of our overall northern economic development goals. First Nation communities can and should be partners with Ontario in regional economic development.

Throughout 2014-15 the ministry progressively developed its relationships and engagement processes with Aboriginal communities through formal agreements, enhanced information sharing and various outreach and educational activities.

In 2014-15, the ministry continued its efforts to support First Nations and Métis participation in the mineral sector through its Aboriginal Relations Branch. The ministry entered into formal funding and relationship agreements with a number of Aboriginal organizations to increase their capacity to engage with the mineral industry, including agreements with the Union of Ontario Indians, Grand Council Treaty 3, the Nishnawbe Aski Nation, the Fort Frances Chiefs Secretariat, the Matawa First Nations Management, the Mushkegowuk Council, the Wabun Tribal Council and the Métis Nation of Ontario. The agreements enabled these Aboriginal organizations to develop capacity in a number of ways which include:

• Hiring mineral advisors and coordinators;
• Obtaining basic skill training in GIS and values mapping;
• Developing information sharing protocols; and
• Developing interim guidelines for community level engagement with the mineral industry. 

The ministry has also partnered with the Ministry of Natural Resources and Forestry on a number of agreements that support each ministry’s mandate, including providing support to the First Nations Natural Resources Employment Youth program, an annual summer employment program for Aboriginal youth, delivered by Confederation College.

In some of the above mentioned agreements, the ministry established technical tables with Aboriginal organizations to allow for the exchange of information, the diffusion of on-the-ground issues and, in some cases, to support the withdrawal of sites of Aboriginal cultural significance from land available for claim staking.

In addition to promoting capacity development, the ministry supported First Nations and Métis participation in numerous mineral sector educational forums, including the Canadian Aboriginal Mineral Association and the Prospectors and Developers Association of Canada.

NORTHERN ONTARIO HERITAGE FUND CORPORATION

The Northern Ontario Heritage Fund Corporation (NOHFC) continues to play a vital role in growing the northern economy, supporting economic development and creating jobs.  It is an important part of the province’s plan to deliver on the Growth Plan for Northern Ontario and to supporting the key sectors identified as having tremendous potential to spur economic growth across the North.

In the period of October 2003 to April 2015, the NOHFC approved more than $1 billion toward 6,620 projects, leveraging approximately $3.6 billion from other funding sources. That support helped create or sustain more than 25,300 jobs across the North. 

In October 2013, new NOHFC programs were announced that focus on those same sectors and stimulate new dynamic investments in the North.  Those investments will help build strong, lasting economic activity and bring new opportunities to northerners. The NOHFC is making strategic investments in areas that will have the greatest impact, such as community economic infrastructure projects, private-sector expansions, business start-ups, investment/attraction, job placements for recent graduates, and northern innovation.

In 2015-16, with a budget of $100 million, the NOHFC will continue to build on these achievements through its new programs, including the Strategic Economic Infrastructure Program, the Northern Community Capacity Building Program, the Northern Innovation Program, the Northern Business Opportunity Program and the Northern Ontario Internship Program.

NORTHERN ONTARIO INVESTMENT AND TRADE

Ministry staff work with Northern Ontario based companies wanting to expand and diversify their business by exporting their goods and services into foreign markets. The ministry also identifies and promotes new and/or expanding businesses in Northern Ontario that have the best opportunity to attract foreign direct investment and to create growth and employment.  The targeted areas include the mineral sector as well mining, and related mining supplies and services, and forest-derived bio-products sectors.

In 2014-15, 54 companies took part in the Mining Supplies and Services Export Assistance (MSSEA) Program, which provides services such as export strategy and marketing planning and one-on-one consultation. The 47 companies who have completed the program conservatively estimate $15 million in new operational investments that can be attributed in part to their export strategy/marketing plans. 

The mining supply and services sector continues to expand its web presence, utilizing a featured web tool: www.ontario.ca/miningatourcore. Mining supply and services companies from Northern Ontario have the opportunity to be represented on this website, creating dedicated pages with links to their own websites.

The ministry led nine domestic and international trade and investment marketing events, including the ministry’s sponsorship and participation in the Mines and Money conference to promote Ontario’s mineral investment climate to international investors and financiers. Each year the ministry also participates in the Prospectors and Developers Association of Canada Annual Conference (PDAC), which is one of the world’s leading mining conferences that is attended by over 25,000 delegates from more than 100 countries. PDAC plays a significant role in promoting trade and investment opportunities in the North.

Ministry support for these sectors contributed to the following results in 2014-15:

• 55 corporate calls completed;
• 101 new investment/trade leads;
• 5 incoming international trade missions
• 262 business to business meetings and 55 corporate calls in foreign markets; and
• More than $62 million in closed trade sales have occurred in the past 4 years. 

In 2014-15 approximately $600,000 in closed sales has been reported by northern companies with another $9 million in projected sales.      

The Mining Memorandum of Understanding between Ontario and India signed in 2010 continues making significant progress towards developing trade and investment opportunities between our jurisdictions. In 2014-15 MNDM led a mission to India that resulted in 21 business to business meetings arranged by the TIM Unit as well as one Partnership Agreement resulting in a quote of $900,000.

A market entry strategy was developed focusing on the mining supply and services sector in Australia. An initial investment mission undertaken in the fall of 2013 has resulted in three new investments into Ontario as well as substantial networking opportunities between the two jurisdictions.

REGIONAL ECONOMIC DEVELOPMENT

Through a network of twenty-six offices located across Northern Ontario, ministry staff promoted and delivered programs, services and funding to build community infrastructure and assist communities in undertaking economic development projects and businesses in start-up, retention and expansion opportunities. 

In 2014-15, staff assisted 722 public and private sector clients to identify and develop economic development initiatives and business development opportunities respectively across the North.  

In 2014-15, the ministry completed a review and evaluation of the Northern Communities Investment Readiness Program (NCIR); an initiative launched in 2006 to support and promote a strong investment attraction climate in Northern Ontario and to assist northern communities develop the tools and capability to receive, develop and successfully attract investment opportunities. Since 2006, NCIR has supported 383 community based projects valued over $4 million. Review findings include confirmation from northern communities that the program improved their ability to work with investors and site selectors and secure new investment opportunities. The program is viewed as a valued resource for northern communities with a population of less than 10,000.

GROWTH PLAN FOR NORTHERN ONTARIO

The Growth Plan for Northern Ontario, 2011, released under the Places to Grow Act, is a strategic plan that guides decision-making and investment planning over the next 25 years.  The plan aims to strengthen the economy of the North, and current initiatives are focused on:

• 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.

Implementation of the Growth Plan is a collective effort of various partners and participants including governments, industry and business, municipalities, Aboriginal communities and organizations and other public and private sector institutions. 

In 2014-15, Ontario delivered on a commitment to continue working with partners across the North to further the implementation of the Growth Plan, including our agreement to meet regularly with northern leaders. Northern Leaders’ Dialogues took place in Thunder Bay, April 11, 2014 and in Sault Ste Marie, February 12, 2015. The next Northern Leaders’ Dialogue meeting is planned for the fall of 2015.  These semi-annual dialogues with northern leaders help to maintain momentum in northern economic development and the shared vision for the implementation of the Growth Plan between the province, municipal, Aboriginal, and community leadership.

Our government has aligned NOHFC investments with emerging and priority sectors identified in the Growth Plan to drive and diversify the northern economy.

The Northern Policy Institute (NPI), made possible by a $5 million contribution from the NOHFC, is providing northern perspective grounded in quality research through reports such as these in 2015: “A New Northern Lens: Looking out is as important as looking in” and “It’s What You Know (And Where You Can Go): Human Capital and Agglomeration Effects on Demographic Trends in Northern Ontario.” The work of the NPI is intended to guide public policy development and help inform decisions of government, and industry.

In 2014-15, close to $527 million was committed for our northern highways, including $147 million for expansion work and $380 million for rehabilitation. The Ontario government has invested more than $5 billion in northern highways since 2003.

The Northern Ontario Multimodal Transportation Strategy, a key implementation initiative of the Growth Plan, led by the Ministry of Transportation, has now completed two phases of the initiative and is embarking on the final phase of the strategy.

In 2014-15, the Ontario government announced its intention to make the Northern Industrial Electricity Rate (NIER) Program permanent for qualifying large northern industrial consumers. The government committed to an ongoing NIER Program beyond March 2016, with continued investment of up to $120 million per year. To date, the NIER Program has disbursed more than $562 million.

In 2015 budget, the Ontario government announced its continued support for strong communities under the Municipal Infrastructure Strategy with a permanent municipal roads and bridges fund of $100 million per year. The permanent fund for municipal roads and bridges will continue support for the most critical projects in communities with challenging fiscal circumstances.

The Ontario Community Infrastructure Fund (OCIF) is a key early step in implementing the government’s 10-year economic plan, which includes $130 billion in infrastructure investments.

The OCIF will provide $100 million per year to help small, rural, and northern municipalities build and repair critical infrastructure and create jobs across Ontario. The OCIF includes $50 million in stable, predictable, formula-based funding, and $50 million in application-based funding.  In February 2015, the first round of funding under the application-based component was announced for 78 projects.

In addition to the OCIF, The Small Communities Fund, a federal/provincial initiative, will provide $272 million each from Ontario and the federal government to support community projects in municipalities with fewer than 100,000 residents. Ontario recently submitted its project nominations for the Small Communities Fund to the federal government.

ONTARIO NORTHLAND TRANSPORTATION COMMISSION (ONTC)

In 2014-15, the ministry approved over $80 million for ONTC capital and operating expenses to support the delivery of telecommunications and transportation services in northeastern Ontario.

In April 2014, the Ontario government announced the sale of Ontera, the ONTC’s telecommunications company, to Bell Aliant. The sale closed on October 1, 2014 and has allowed the ONTC to focus resources on its core transportation services.

The government also announced that the motor coach, Polar Bear Express, rail freight, and refurbishment business lines of the ONTC will remain in public hands.  To support this direction, the government committed to transforming the ONTC to ensure sustainable employment, continued economic growth, and a strong transportation network in northeastern Ontario.

The government has committed to making strategic investments to ensure ONTC’s transportation services and infrastructure continue to support economic growth in northeastern Ontario.

These investments include more than $23 million over three years to purchase new motor coaches for ONTC’s bus line and to refurbish passenger rail coaches for the Polar Bear Express. This will maintain and improve vital transportation services, and provide new work for the ONTC refurbishment division.

To establish a firm path for transformation, the ONTC is identifying and moving forward with changes to its business lines that will support sustainable operations.  The ONTC is finding a balance between operational efficiencies and ensuring that important transportation services are available.

The Ontario government remains committed to ensuring that northern communities and industries benefit from viable, efficient and sustainable transportation systems. 

OWEN SOUND TRANSPORTATION COMPANY (OSTC)

The OSTC operates several key ferry services in Ontario that connect communities to the rest of the province.  This includes the Chi Cheemaun between Manitoulin Island and the Bruce Peninsula, and the Niska I between Moose Factory Island and Moosonee in the Far North.

The OSTC also provides vessel management services for the Ministry of Transportation for two vessels, the M.V. Pelee Islander and the M.V. Jiimaan, operating on the Pelee Island service, and administers daily air service between the Ontario mainland and Pelee Island during the winter months when the ferry service is not in operation

In 2014-15, higher than usual ice levels on Georgian Bay delayed the start to the sailing season. Ice levels eventually receded, and the ferry’s season officially launched on May 5.

NORTHERN INDUSTRIAL ELECTRICITY RATE (NIER) PROGRAM

On April 7, 2015, the Ontario government announced its intention to make the NIER Program permanent with a continued investment of up to $120 million per year, available for qualifying large northern industrial consumers. 

The NIER Program helps Northern Ontario’s largest industrial electricity consumers reduce their electricity costs, sustain jobs and maintain global competitiveness. To date, the NIER Program has disbursed more than $562 million.

In 2014-15, 16 participating northern industrial companies, representing 25 facilities across the North, received a rebate of two cents per kilowatt-hour to a maximum of 2011/12 eligible consumption levels, or to a maximum of $20 million per company, per year – whichever is lower.

NORTHERN HIGHWAYS AND WINTER ROADS

For 2014-15, MNDM invested close to $527 million in northern highway rehabilitation and expansion to improve road safety, quality of life for northerners and spur economic development. Highlights include:

• approximately $147 million for system expansion (four-laning) and safety initiative projects;
• approximately $380 million for system rehabilitation;
• continued work on 20 kilometres of Highway 69 four-laning;
• 14 kilometres of new four-laned highway on 11/17 opened to traffic July 26, 2013; and
• an additional 13 kilometres of new four-laned highway on 11/17 opened to traffic in fall 2014.

Through the Winter Roads Program, residents of 31 remote communities in the Far North have more economical and safe access to services and supplies via the 3,000 kilometre winter roads network. The network expanded in 2012-13 by 180 kilometres with the construction of a new road from Moose Cree First Nation to Otter Rapids. The ministry invested $5 million in the construction of the winter road system in 2014-15, and has invested over $44 million in construction and maintenance costs on the network since 2004/05.

MINERAL SECTOR HIGHLIGHTS

Ontario remains the leading jurisdiction in Canada for the exploration and production of minerals in Canada, and a major player across the world.

Despite a global downturn in metals prices and a general reduction in exploration spending across the industry, in 2014 the value of mineral production reached a record $11 billion; this makes us the top province in Canada for mineral production.

Active mining claim units for 2014 are approximately 235,000, and there are over 30 advanced mineral projects in Ontario and mine construction is underway at about six of these.

The total number of direct jobs in mineral production was 26,000 in 2014. There are also an additional 50,000 jobs associated with manufacturing and processing. The mineral sector is the largest private sector employer of Aboriginal peoples in Canada.

To build on successes, the government has announced a renewed Mineral Development Strategy. This is part of our work to ensure that Ontario’s mining sector remains competitive.

The renewed strategy will address a number of key drivers in the mining sector such as:

• Raising capital for prospecting, exploration and mineral development;
• Building Aboriginal partnerships and opportunities;
• Competitive production and transportation costs;
• Technologies to improve discovery rates and identify new ore reserves; and
• Future labour market opportunities.

An invitation for public feedback on the Strategy was issued in winter 2015 and workshops were scheduled until spring 2015.

MINING ACT MODERNIZATION

Ontario remains on-track in its approach to the modernization of the Mining Act, first launched with the Mining Amendment Act, 2009.

While some changes came into effect at the time of Royal Assent, most of the changes have been brought into effect over time as the relevant regulations and policies were developed following extensive stakeholder and consultation with Aboriginal communities.

2013/14 saw the ministry consolidate the implementation of the second phase of the Mining Act Modernization (MAM) process, which included provisions for exploration plans and permits, the submission of expenses for geo-referencing mining claims and expenses related to Aboriginal consultation.

In 2014-15, 121 active exploration plans and 145 exploration permits were issued.

In 2014-15, MNDM approved assessment credits of $5,121,200 for the geo-referencing of mining claims, and $842,645 for Aboriginal consultation. Some 2,207 prospectors and interested parties have taken the online Mining Act Awareness Program.

To help enable effective consultation with Aboriginal communities, and concurrent with the second phase, the ministry introduced the Aboriginal Capacity Initiative. This is a three-year pilot (2012-2015) to assist Aboriginal communities to participate effectively in consultation on exploration plans and permits and closure plans within timeframes outlined in new Mining Act regulations. The initiative targets support to Aboriginal communities located in areas with high mineral exploration activity.

Under the third phase of the MAM process, the ministry is proposing to implement a move from current methods of acquiring Crown land for mineral exploration (i.e. ground staking in Northern Ontario and paper map staking in Southern Ontario) to less-intrusive online claim staking for the entire province. The third phase would also modernize mining lands administration from the current paper-based processes to a digital-age, electronic process. This would include conducting a one-time conversion process over a period of time during summer 2017, wherein all mining claims would be converted at once to online registration. Both of these elements have been included in previous public consultations and in previous postings regarding MAM implementation.

In 2013-14, as part of Phase Three, the ministry consulted with industry stakeholders across Ontario, as well as with First Nations, tribal councils, political organizations and the Métis Nation of Ontario. Public consultation included a 63-day posting of the document A Proposal for Implementing Online Staking and Modernized Mining Lands Administration in Ontario on the environmental and regulatory registries.

In 2014-15, the ministry launched another round of outreach. Between October 2014 and May 2015, the ministry will have conducted a total of 26 sessions. Those with industry focused on refinement of business requirements, while the Aboriginal sessions focused on information exchange and engagement relative to Phase Three deliverables

The ministry expects to present legislative amendments to the Legislative Assembly in autumn 2015.

The third phase of implementation will require technical changes to the Mining Act. If the proposed changes to legislation are enacted, the ministry would then develop implementation regulations and policies, by spring 2016.

ABANDONED MINES REHABILITATION PROGRAM

The Abandoned Mines Rehabilitation Program helps to ensure that abandoned mine sites that once contributed to our province’s economic growth do not become a lasting environmental and health concern for future Ontarians. This work demonstrates Ontario’s commitment to a strong and sustainable mining industry that works to ensure the protection of the environment and provides substantive and sustainable benefits to our residents and communities.

In 2014-15, Ontario provided $4 million in funding to conduct reclamation work on ten sites.

GEOSCIENCE MAPPING

The Ontario Geological Survey (OGS) collects and shares geoscience information across all of Ontario to attract and guide mineral sector investment and inform a broad range of government policy priorities, such as:

• Identify potential for minerals, energy and groundwater;
• Land-use planning decisions by Aboriginal communities and MMAH, MNRF, and municipalities; and
• Decisions related to other ministry policy initiatives, such as the Far North Act, source water protection and development, public protection from natural geological hazards, and characterization of the state of the environment from a geological perspective.

2014-15 accomplishments that continue to grow Ontario’s geoscience information include:

• delivery of 66 geological projects across all of Ontario, including in the Ring of Fire area;
• participation in another 23 collaborative geoscience projects with other Federal, Provincial and Municipal Governments, First Nation bands and organizations, conservation authorities, City of Ottawa and Guelph, and academia;
• the technical transfer of geological and groundwater, aggregate, energy, and mineral related geological insights to users at about 20 technical trade shows and meetings of International, national and provincial scope;
• representation of Ontario’s geoscience interests in the International Great Lakes Geological Mapping Coalition, the Institute of Lake Superior Geology, and nationally through the National Geological Surveys Committee;
• development of digital geoscience digital products, resulting in over 406,000  downloads;
• publication of 106 new geoscience products;
• presentations of Ontario’s geoscience interests to about 15 remote First Nation bands and organizations across the far north as part of core business and in support of the Far North Act;
• clients that made a decision to invest in Ontario and who used an OGS good or service to support their investment decision were “satisfied” or “very satisfied” 89 per cent of the time; and
• clients who used an OGS good or service to support a land-use / environmental decision about Ontario were “satisfied” or “very satisfied” 98 per cent of the time.

Table 3:  Ministry Interim Actual Expenditures 2014-15

* Interim actuals reflect the numbers presented in the 2015 Ontario Budget.
** Ontario Public Service Full-Time Equivalent positions.