The province officially launched its $500-million Critical Minerals Processing Fund during a media event at Sudbury's Science North, Dec. 12.
The fund to subsidize mining companies was announced in May, with Friday's event serving as a means of promoting it. Energy and Mines Minister Stephen Lecce and Economic Development, Job Creation and Trade Minister Vic Fedeli were on hand.
During his remarks, Fedeli noted that the formal launch was taking place seven days after he visited Sudbury to break ground on an $85-million shop by mining equipment and engineering company Sandvik, which included a $4-million subsidy from the provincial government.
“Today, we are proud to be building on that momentum as we mark another milestone in our government’s plan to protect Ontario and strengthen the province’s leadership in this critical mineral sector,” he said.
The fund, he added, “was created to provide strategic financial support to projects that accelerate the province’s critical minerals processing capacity and strengthen domestic supply chains.”
“Protecting the North” is a key goal behind the effort, he said.
“We’re protecting the province from external disruptions and shortages, and we’re ensuring the stability, the security, of not just our critical minerals sector, but our defence, our aerospace, our automotive, our health sciences and advanced technology sectors.”
During his remarks, Lecce promoted the “secure, ethical supply chains”; these efforts will help “repatriate jobs.”
The fund, he said, “is the official announcement by our premier that we are ending the ripping and shipping of Canada’s resources and processing them, creating jobs right here at home.”
Greater Sudbury Mayor Paul Lefebvre said the fund “will accelerate innovation, it will grow our local economy and it will create the high-value careers that support families across our community.”
Sudbury.com asked Fedeli about the province’s ideology behind subsidizing private industry.
Since profits-driven international companies look at the greatest subsidies, lowest taxes and most lenient environmental regulations when they choose where to invest, how does the province guard against a race to the bottom and ensure the public gets the greatest benefit?
Of the 409 international companies that invested $39 billion across the province last year and hired 42,711 additional people, he said the province subsidized nine of them.
The province helped the balance with what Fedeli called "concierge service,” wherein they helped them navigate Ontario, since some of them might not have been familiar with the region.
“We have very firm environmental regulations, we have very firm labour laws, so they know what they’re getting into from that aspect,” he said.
The key reason they come to Ontario is the talent, he said, citing 86,000 STEM graduates per year, which was boosted by 20,500 in last year’s provincial budget.
Fedeli said the international companies that invest in Ontario “come for all the right reasons.”
There’s no limit to how much money companies can apply for under the $500-million Critical Minerals Processing Fund. Fedeli said applications will be assessed individually on their own merits using “a serious financial due diligence” and a scoring matrix.
Tyler Clarke covers city hall and political affairs for Sudbury.com.