Catalyzing the Ontario Mineral Industry Cluster: Lessons Learned

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• Catalyzing the Ontario Mineral Industry Cluster
  Lessons Learned
• Northern Partnership Conference
• Khanty-Mansiysk
• May 19 -20, 2009

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Outline

• Setting the Stage
• Global Trends and Ontarios Response
• Ontario Mineral Industry Cluster
• Catalyzing the Mineral Cluster Through
  Collaboration
• Lessons Learned
• The Way Forward

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Setting the Stage - Map of Canada
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Setting the Stage - Ontarios GDP Compared to
Other Countries
Larger than those of many countries
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Setting the Stage - Mining and Mineral Activity
in Ontario
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Setting the Stage - Facts and Figures From 2008

• 9.7 Billion of mine production
• 667 Million spent on exploration
• 16,000 people directly employed
• 1,000 companies serving the mineral sector
• 41 operating mines
• 400 junior exploration companies
• 7,500 prospectors
• 800 exploration companies 20 companies exploring
  for diamonds
• Mineral industry is the largest employer of
  Aboriginal/Indigenous people
• Toronto Financial Services Sector - third largest
  in North America gt 40 of global equity for
  mining raised by the Toronto TSX/V listed
  companies and 400 junior exploration companies
  are listed

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Global Trends and Ontarios Response

• The Global Trends
• Intense global competition and increasing out
  sourcing
• Reduction of trade barriers, capital and
  productive capacity migration
• Economic Imperatives - increase innovative
  capacity, heighten value-add, cluster
  development, and expand and grow
  commercialization and exports
• Economic Imperative specific to Northern Ontario
  - increase value added products, economic
  diversification, and build infrastructure
• The Ontario Response
• Ontario Government Directions - Achieving Our
  Potential Road Map to Prosperity Clusters and
  Economic Growth Innovative Economy Ontario
  Innovation Strategy
• The Ministry of Northern Development and Mines
  mandate - sustainable growth for the north a
  healthy and prosperous mineral sector, Mineral
  Development Strategy
• The Need - new government roles new forms of
  public - private partnership and collaboration
  new approaches (like cluster development)

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Global Trends and Ontarios Response (Contd)

• The Governments Program, Policy and
  Organizational response
• Achieve macroeconomic and political stability
  low inflation deficits
• Improve microeconomic business environment
  improve infrastructure and R D capacity
• Provide incentives that encourage productivity
  and innovation
• Foster and reinforce the cluster formation
  process
• A long-term economic vision that mobilizes
  government, business, and citizens
• Ministry of Northern Development and Mines
  established a formal project to determine
  applicability of the cluster based approach to
  the mining sector

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Global Trends and Ontarios Response (Contd)

• Preliminary assessment of mineral cluster
  revealed low employment growth weak linkages
  across sub-sectors and lack of strategy to
  optimize Ontarios strengths in mining
• Consultations were held with various stakeholders
  to solicit their feedback on and to seek their
  support for a cluster -based approach to
  Ontarios mining and mineral sector
• A cluster forum was convened (the first ever) to
  bring stakeholders together to explore how to
  overcome challenges and leverage strengths
  comparative advantage, i.e. Ontarios rich
  mineral endowment
• Private sector leadership emerged to lead a
  collaborative organization
• The Government of Ontario established a private
  sector led Ontario Mineral Industry Cluster
  Council (OMICC) to catalyze the Ontario mineral
  industry cluster

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Ontario Mineral Industry Cluster

• A cluster is a group of interrelated industries
  and institutions that drive wealth creation,
  primarily through innovation and the export of
  goods and services. Clustered industries mutually
  reinforce and enhance each others competitive
  advantage.
• The Ontario Mineral Industry Cluster includes

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The Ontario Mineral Industry Cluster - A
Schematic View
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Catalyzing the Mineral Cluster Through
Collaboration

• Vision
• Unleashing the provinces mineral potential to
  promote sustainable growth and create prosperity
• Mandate
• Foster a sustainable and rising standard of
  living from Ontario's rich mineral endowment
• Lever the current mineral industry assets to
  create a larger and more globally competitive
  cluster of mineral and related industries and
  organizations
• Bring together the cluster of mineral-related
  industries and organizations that must compete
  and cooperate to win more prosperity
• Membership
• Leaders from mine operators, exploration
  companies, financial sector, suppliers, research
  institutions, associations, universities and
  colleges, environmental groups, and officials
  from three levels of government

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Catalyzing the Mineral Cluster Through
Collaboration Progress to Date

• Modernization of the Mining Act - Bill 173
• Commitment to Resource Benefit Sharing between
  Ontario and Aboriginal/Indigenous peoples
• Ontarios Mineral Development Strategy
• Commercialization and Export Strategy
• Centre for Excellence in Mining Innovation
• Federated School of Mines
• Tools to profile mineral cluster
• An OMIC website
• The Rehabilitated Mines Calendars
• A Guide for Junior Exploration Companies
  Building a Dialogue With Aboriginal Communities
• Ontarios Mineral Industry Cluster An Economic
  Powerhouse brochure

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Lessons Learned

• Government and private sector have separate, but
  equally important roles in catalyzing clusters
• Focus simultaneously on both short-term needs and
  long-term priorities
• Cluster forums can serve as galvanizing events
• Comparative advantages - best geology - will not
  guarantee sustainable growth
• Cluster development can take decades before it
  reaches maturity
• Patience and persistence are required to sustain
  momentum

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The Way Forward

• Ensure the continued vitality of the OMICC
  leadership to sustain its momentum
• Develop a vision and a cluster roadmap that will
  position the Ontario mineral industry cluster as
  the largest in North America
• Continue to provide a platform for building
  relationships and partnerships, increasing
  collaboration, and cultivating synergies
• Structure organizational efforts to support
  cluster policies and programs

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Thank You

• Kevin Costante,
• Deputy Minister, Ministry of Northern Development
  and Mines, Ontario, Canada
• For more information on the Ontario Mineral
  Industry Cluster, visit the cluster website at
  www.omicc.ca
• For more information on the Ontario Ministry of
  Northern Development and Mines, visit
  www.mndm.gov.on.ca/