Sudbury wants to become the "Silicon Valley" of the mining
sector. A major contribution from the federal government for
mining research is needed to enhance the region's globally
significant cluster of mining related firms.
Why are the Harper Conservatives holding back this city's
economic potential while Quebec's heavily subsidized aluminum
industry has benefited from federal research funding to the
tune of $57 million?
Mining is one of the most technology dependent sectors of the
Canadian economy. Like other facets of modern production, the
silicon chip has revolutionized every stage of the mineral
extraction process, from satellite imagery for exploration to
the use of automation underground.
Technology has helped improve working conditions, increased
efficiency and significantly lowered production costs to enable
the Canadian industry to remain globally competitive.
An October 2004 Conference Board of Canada report, found that
the country's primary metals sector came first on a list
comparing productivity performances between Canadian and
American industry sectors. The Canadian primary metals sector
was an eye-popping 150 percent more productive than their U.S.
peers. Only 10 out of 29 industrial sectors outperformed their
American rivals.
Historically, the mining sector has always relied on technical
improvements to help solve the many challenges associated with
supplying essential materials for industrial development.
The first two original versions of the steam engine were built
to help pump water out of the coal mines of England. The
resulting technology transfer of that invention helped
transform the British economy. There is no exaggeration in
stating that the discovery of the steam engine in 18th century
Britain started the industrial revolution and the modern age.
In November 2004, the federal government opened the National
Research Council's new Aluminum Technology Centre in Saguenay -
Lac-Saint-Jean, the heart of Quebec's globally significant
aluminum production and processing facilities.
The region contains a cluster of industries focused on aluminum
smelting, helping make Canada the world's second largest
exporter of this light weight metal. The federal government
invested about $57 million in this project which intends to
provide the Canadian industry with the expertise and technical
support to develop value-added products and services in
aluminum production.
The architecturally attractive facility is located on the
campus of Universite de Quebec a Chicoutimi and "is the result
of the Government of Canada's determination to play an active
and concrete role in the development of technology clusters in
sectors that offer promise for the future growth, productivity
and job creation," a government press release stated.
In that same release, National Research Council vice-president
Richard Normandin said, "In the new knowledge-based-economy, R
& D is one of the keys to prosperity, and we believe that
the Aluminum Technology Centre has what it takes to support the
development of the transformation of the industry in Canada,
and in Saguenay more specifically."
Permit me to be politically incorrect, and point out that
Ontario's equalization payments helped build that technology
centre.
Quebec has always been a "have-not" province. In addition, La
belle province has a world-class aluminum industry, largely due
to tax-payer subsidized hydro rates - the key cost in aluminum
production - again courtesy of Ontario taxpayers. Conversely,
Sudbury's mining industry operates with no massive public
subsidies.
The Sudbury Basin is Ontario's metallic equivalent of the
Alberta tar sands. For more than 120 years this geological
wonder has probably contributed almost one trillion dollars -
at current metal prices - to the national economy. Most
industry experts and corporate leaders routinely say that the
Basin will still be producing nickel, copper and platinum group
metals for another hundred years.
The Australian Institute of Mining and Metallurgy has stated
that over the next 50 years the world will use five times the
mineral resources that have been mined to the year 2000.
A local cluster of more than 300 mining supply and service
companies (MS&S) working for the region's mining companies
employ about 10,000 workers.
A recent survey conducted for FedNor at Laurentian University
indicates that innovation is extremely high among the cluster
of MS&S companies in Northeastern Ontario. The study
revealed that 83 out of 90 of the firms surveyed indicated they
were upgrading products and services and 72 out of 93 had
introduced a new product or service in the preceding three
years.
Clusters are compact geographic concentrations of inter-related
industries, service providers and associated research
institutes that help create wealth and high-paying jobs through
the export of goods and services. Many economists believe
clusters are the future key to wealth creation. Outside of
Toronto and Vancouver, Sudbury's mining supply and service
cluster is the second or third largest in the country depending
on whom you talk to.
Laurentian University has a federally funded Canada Research
Chair in Robotics and Mine Automation and is one of country's
leading institutions in post-secondary mining engineering and
metallurgy programs. The university is revolutionizing the way
minerals are extracted from the ground.
Sudbury-based Northern Centre for Advanced Technology (Norcat)
is developing space-age mining equipment that may be used in a
NASA research flight to Mars and is also working on a
technology incubation centre.
Surprisingly, Canada does not have a major National Research
Council (NRC) funded facility totally dedicated to the mining
sector. Currently much of Canada's mining related R & D is
being undertaken in an uncoordinated manner.
Larger scale, critically important projects are not attempted
due to lack of funding. Australia, a major mineral producer
with a population of only 19 million, has two world- class
research institutes dedicated to mining innovation.
These institutions are helping Australia overtake Canada's
traditional lead in this technologically sophisticated field.
FedNor, a federal agency responsible for Northern Ontario's
economic development is trying to fund a world-class research
institute for mining innovation through CEMI (Centre for
Excellence in Mining Innovation).
To date, the initiative has received $10 million from Ontario -
to be fair MNDM Minister Rick Bartolucci should be applauded
for this- $5 million in cash and services in-kind from each,
CVRD Inco and Xstrata and an additional $5 million from smaller
contributors. CEMI's key research themes included exploration,
deep mining, integrated mine process engineering, telerobotics
and automation and environmental stewardship. But the federal
government is missing in action.
A minimum contribution of $60 million to CEMI and its other
multiple private and public sector partners to do mining
industry specific research must be made by the Harper
Conservatives.
It is time the Sudbury Basin received its fair share of federal
high-tech investment. This would benefit the entire country and
help establish Sudbury as the "Silicon Valley" of the world's
mining sector.
Stan Sudol is a Toronto-based communications consultant and policy analyst who writes extensively on mining issues.[email protected]
