MANITOBA
MINING ACTIVITY Coming out of the pandemic, the current state of mining in Manitoba finds itself at a crossroads. The province’s outstanding world-class deposits of critical metals, close proximity to supply inputs and markets, excellent transportation providers, and a skilled workforce at competitive wages are just a few of the reasons to remain optimistic for the future; yet a number of challenges persist. “The provincial government has welcomed engagement from MAMI and members to provide input on future regulatory changes and direction, but more work is required on permitting and regulations that provide greater certainty as well as faster approval processes for permits,” says John Morris, co-director at the Mining Association of Manitoba Inc. The Government of Manitoba has introduced a number of incentives that promote mineral exploration and
mining in the province, such as the Mining Tax Act, which allows mining companies to deduct processing allowances from profits when calculating taxes owing. Since 2020, the province has also invested more than $3 million towards mining projects that spur economic development, in addition to advancing reconciliation to attract capital into the province. “Providing incentives for mining companies to develop operations in the province helps reinforce Manitoba’s position as a mining-friendly jurisdiction,” says finance minister Scott Fielding at a recent event in Snow Lake. “Since the mining sector is a major employer, especially in northern Manitoba communities, and a key driver of the economy, stimulating industry development ultimately benefits the entire province.” Shortly, the Government of Manitoba will also be announcing further changes
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MANITOBA MINING REVIEW 2021-2022
By Paul Adair
aimed at modernizing the province’s aforementioned permitting system. “The biggest challenge that we have is related to permitting; this is the message that we have heard loud and clear from the mining industry,” says Agriculture and Resource Development Minister Ralph Eichler. “Once we get the permitting issue out of the way by the end of the year, we feel that we will be well-positioned to move forward in allowing the industry to do what it does best; and that’s mining and exploration. I'm really excited about where we're going over the next four to five years – and beyond.”
Vale Invests in Thompson Mine Located 650 kilometres north of Winnipeg, the Thompson orebody was first discovered in 1956 by Vale (then known as Inco). After decades of prosperity, however, the Thompson mine has seen significant decline in recent years; so much so that, in 2019, Vale suggested that it was losing $300,000 per day at the mine, and the company was unable to continue operations under the status quo. This admission by Vale spurred a comprehensive review of its Manitoban mining operations, which many saw as dire sign of things to come for the City of Thompson. It was a relief then, that Vale last summer announced an investment of $150 million to extend mining activities at the Thompson mine by a decade, with the potential of mining continuing in the region past 2040. “This is the largest single investment we have made in our Thompson operations in the past two decades,”
