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Mining association sees economic, environmental benefits of new electricity proposal |
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Written by REM Staff
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The Ontario Mining Association supports the provincial government’s new initiative to strengthen the economy by providing new tools for the mining industry to better manage electricity costs. The proposed regulation change to the Global Adjustment charge will encourage reduced electricity consumption during costly peak periods and provide a greater degree of price certainty. The anticipated starting date would by Jan. 1, 2011.
“Price stability is critical to the mining industry,” said OMA president Chris Hodgson. “The announcement by Energy Minister Brad Duguid assists mining companies in remaining competitive, protecting jobs and attracting new investment.”
The OMA and the OMA Energy Committee, which is chaired by Mark Passi from Xstrata Nickel, has been consulting with the government for two years on this policy. Ontario’s mining companies want to thrive within a green economy and they recognize they have a role to play in helping Ontario meet its conservation targets.
“The industrial sector in Ontario has worked diligently to reduce costs and stay competitive in this new economic reality,” said Craig Szabo, plant manager for industrial minerals producer OMYA Canada. “The change in the Global Adjustment calculation method and resultant savings is a positive step forward to ensure continued recovery in our competitive position.”
The proposed change will allow mining operations in Ontario to control peak electricity usage and reduce overall demand, better utilize electricity infrastructure and reduce emissions. It recognizes the need for vital sectors of the economy, like mining, to remain competitive. The announcement also is forward looking and provides a boost to the future for mining in areas such as Ring of Fire in the Far North, which hold potentially large deposits of chromite, nickel, copper and platinum group metals.
“This is an important step by the McGuinty government that will help industry more actively participate in the green economy,” said John Pollesel, nickel producer Vale’s vice-president of
production services and general manager of Ontario operations. “The government’s leadership on this issue will provide businesses with a powerful incentive to manage their electricity use more responsibly, particularly on the most critical days of the year. It will provide additional incentive to boost investment and create jobs in Ontario.”
Ontario’s $10 billion mining industry spends more than $500 million annually on energy, which represents on average between 15 and 30 percent of operating costs at various mining operations.
www.oma.on.ca
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