Ontario’s Ring of Fire could generate tens of billions of dollars in economic activity and thousands of new jobs across Ontario, study shows
A new report from the Greater Sudbury Chamber of Commerce and the Ontario Chamber of Commerce reveals that Ontario’s Ring of Fire, the mineral resource-rich region in the James Bay Lowlands, will generate up to $9.4 billion in new economic activity over the first 10 years of operation and sustain 5,500 jobs annually.
According to the study, Beneath the Surface: Uncovering the Economic Potential of Ontario’s Ring of Fire, the mining development could generate more than $25 billion across numerous sectors in Ontario by 2047, including $2.7 billion in revenues for the financial services sector and $1.2 billion for the wholesale and retail trade sectors.
“Our study makes it clear that the short-and long-term economic impacts of the Ring of Fire extend far beyond mining,” says Allan O’Dette, President and CEO of the Ontario Chamber of Commerce. “It’s time to broaden the Ring of Fire conversation to include all of Ontario, not just the Far North.”
“The Ring of Fire will generate an estimated $6.2 billion for Ontario’s mining sector in the first 10 years of its development, with much of this mining activity being concentrated in Northern Ontario,” says David Boyce, Chair of the Board, Greater Sudbury Chamber of Commerce. “Development of the Ring of Fire is important to all Ontarians, regardless of geography. The positive impacts will be felt across the province in the form of increased GDP, job creation, and government revenue.”
The study shows that the Ring of Fire will generate significant revenue for governments, to the tune of $1.95 billion within the first 10 years of its development. The authors call on the provincial and federal governments to design and fund a plan to address inadequate transportation infrastructure in the Ring of Fire, which is cited as a significant barrier to development.
“There is a strong business case for governments to invest in this economic opportunity,” says O’Dette. “The federal government, in particular, needs to play a more active role in this development, as it has for other transformative projects including the oil sands, the St. Lawrence Seaway, and Churchill Falls.”
“The Ring of Fire is one of Ontario’s greatest economic development opportunities in a generation. However, significant work still needs to be done before the full economic potential of the Ring of Fire can be realized. The federal and provincial government must work together with the private sector and Aboriginal partners to share responsibilities in order to propel this development forward. We can’t let this opportunity pass us by,” adds Boyce.
Additional highlights from study include:
Within the first 10 years of its development, the Ring of Fire will:
- generate up to $9.4 billion in Gross Domestic Product (GDP)
- generate up to $6.2 billion for Ontario’s mining industry
- sustain up to 5,500 jobs annually (full time equivalents)
- generate nearly $2 billion in government revenue, divided between the federal, provincial, and municipal governments.
Within the first 32 years of its development, the Ring of Fire will generate more than $25 billion in economic activity across numerous sectors in Ontario, of which mining is just one:
- $2.7 billion in revenues for the financial services sector
- $1.2 billion for the wholesale and retail trade sectors
- $600 million for the manufacturing sector
- $500 million for the utilities sector
Read Beneath the Surface: Uncovering the Economic Potential of Ontario’s Ring of Fire