1. Northern Ontario Municipal Association April 29, 2011

2. 2 Agenda Ontario Mining Association Mining in Ontario Narrow Window of Opportunity Recommendations

3. 3 The Ontario Mining Association Mission - to improve the competitiveness of mining in Ontario while striving for a safe and sustainable industry Currently 70 members representing mineral producers, contractors, suppliers, consultants and others associated with the industry Recently celebrated our 90 th anniversary

4. 4 There are currently over 600 exploration projects underway across Ontario and investment is forecast to reach $939M in 2011, a new record. Exploration and Mining Sequence

5. 5 Land Access Requirements  Mining/ Mine Closure (5 sq kms) ------------------------------------  Advanced Exploration (+5 sq kms) ----------------------------  Preliminary Exploration (X10’s sq kms) ----------------  Land Acquisition (X00’s sq kms) ------------------  Area Selection (X000’s sq kms) ---------------

6. 6 A Safe Industry Ontario is one of the safest mining jurisdictions in the world Mining is one of the safest industries in Ontario. Based on 2010 data we see  Lost time injury rate of 0.5 per 100 workers - second best in the province.  Total medical aid frequency rate of 4.5 per 100 workers - improved from 5.8

7. Ontario - Canada’s leading mineral producer World class deposits plus many smaller scale deposits sustained the industry for more than a century Today’s 40 mine sites represent a high-tech, solution- providing industry that delivers benefits to all parts of Ontario Productivity powerhouse with salaries that are among the highest in Ontario 100,000 employees in the cluster; Aboriginal workers represent 7.5%

8. Commodity Price Index in Real US Dollars: 1801-1999 Long-Term Trends in Relative Commodity Prices SOURCE: Nesbitt Burns Economic Research

9. Window of Opportunity

10. Many analysts agree the next 20 years will bring commodity demand exceeding historical spikes –China needs to build 3 cities larger than Toronto every year until 2030 –Growth in global construction to outpace world GDP over next 10 years The industrial economy and the green economy are complementary –The green economy is not possible without the use of minerals and metals: wind turbines, smart phones, solar cells, hybrid vehicles, etc The world demands the products of mining. Mines will be built. Will Ontario benefit?

11. Window of Opportunity 20 year window of opportunity can be spent on permitting and approvals, or it can be spent opening mines Environmental and safety record not in jeopardy by speeding up development Align interests to ensure province, industry and community all benefit What better place to mine than in Ontario with its responsible environmental protection, world class safety record and desire to participate in new and emerging technologies?

12. Recommendations Establish a target number for new mines in Ontario –Ontario should balance conservation targets with development targets Compress development timelines –To take advantage of current window of opportunity, Ontario can no longer afford a 10-15 year development horizon. An engaged civil service, working aggressively with the industry and the federal government, could cut these timelines in half. Develop a rare earth elements strategy –Bringing our small deposits into production will provide Ontario with inputs necessary in the manufacture of new technology Provide for comprehensive and long-range geological data collection and mapping

13. Recommendations Align the interests by allowing local municipal and First Nation communities to have a greater share of the benefits of mining –Maintain the current mining tax rate but shift the allocation of revenues to allow greater benefit to the host community –Allocate mining tax from new mines to the host community (does not affect the government’s fiscal plan outlook) Use the Northern Ontario Heritage Fund to spur the necessary transportation and power infrastructure needs for mining development Allow smaller and start up mines to benefit from the Northern Industrial Electricity Rate Program and the recent change to the Global Adjustment calculation

14. Recommendations Support the Mining Industry Human Resource Council efforts to attract, retain and develop employees at existing and new mines Lower Workplace Safety and Insurance Board premiums to reflect the safety record of the mining industry Implement environmental regulation that protects human health –There is significant scientific uncertainty and technological limitations with regards to Regulations 194/05, 419/05 and the Toxic Reduction Act

15. Comments? Questions? Chris Hodgson, President Ontario Mining Association Suite 520, 5775 Yonge Street Toronto, Ontario M2M 4J1 Tel: 416 364 9301 chodgson@oma.on.ca www.oma.on.ca