Northern Economist 2.0

Sunday, 12 March 2017

Economic News Around the North: March 12th Edition


Here are some of the items that caught my interest this week in terms of some economic significance for northern Ontario as well as more general interest.  A fair number of stories having to do with mining and the growing feeling that there is finally a resurgence in the mining sector.  A story in this morning's Thunder Bay Chronicle Journal also mentioned that the Hemlo mine may have more life in it.   However, it is important to separate this from the hype regarding the Ring of Fire which faces a number of other obstacles (see my previous post).  As The Economist story referenced below noted: "The potential of “green” metals and minerals, which along with copper and cobalt include nickel, lithium and graphite, is adding to renewed excitement about investing in mining firms as they emerge from the wreckage of a $1trn splurge of over-investment during the China-led commodities supercycle, which began in the early 2000s. The most bullish argue that clean energy could be an even bigger source of demand than China has been in the past 15 years or so."


In other news, like Thunder Bay, Sudbury is also going through debate and discussion on a new arena and like iterations of the debate in Thunder Bay, location is an issue.  One view sees a new arena in the downtown area on the site of the current arena whereas another view wants it further afield.  Interesting point is the proposed price tag which comes in at $80 million dollars (plus another $20 million for land) which is  below what estimates ($114 million) for a new facility in Thunder Bay come in at. Sudbury is apparently also getting a new casino.

Casino Operator will focus on Sudbury in May. Sudbury.com. March 11th, 2017.

It also turns out there is a bit of contention over OPG jobs which have been moved out of North Bay and partly to Timmins and Cornwall, Ontario.  Jobs are a scarce commodity in the north and the broader public sector has become a pillar of most communities.  When it comes to employment, I suppose the public sector giveth and the public sector taketh away.  
20 OPG jobs coming to Timmins. TimminsToday. March 6th, 2017.
While North Bay is unhappy with the OPG development, it can take consolation in new dealings with Russia.  I would imagine this will provide opportunities for travel.

Invest North Bay signs agreement with Russian investment group. Northern Ontario Business. March 8th, 2017.

And for those of you waiting for what will happen to redevelop HMV properties being vacated in the north, this item.


Thunder Bay is apparently not getting one yet.  However, residents of Thunder Bay can take some solace in its new transit development courtesy of The Beaverton and more seriously the proposed infrastructure spending on its recreational facilities at local schools.  Regarding the proposed infrastructure spending on track and field facilities, a student is quoted as saying: "It's an opportunity to play on a field like to play on a field like the people down in southern Ontario get to play (on)." I suppose we can all regard this development as helping to level the playing field with respect to southern Ontario at least with respect to sports, if not the use of the English language. However, it may be a long-term investment in health via exercise as other stories suggest the North may still not be a very healthy place relative to southern Ontario. See for example: Grim Data Emerging. The Chronicle Journal. March 12th, 2017. This story did not provide a regional breakdown on snowmobile deaths but the gender breakdown shows males are more likely to die in snowmobile accidents.  On a per capita basis, there are probably more deaths in the north.  In the week of February 22nd, there were five fatalities - one in Oro-Medonte, one in Thorton, two in Nipigon and one in Lindsay, Ontario.

Have a great week.