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Economy

Newfoundland gold mine a big deal for Green Bay economy

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Local mayors expect the proposed revival of a nearby gold mine could shine brightly on their rural-Newfoundland economy.

Maritime Resources Corporation last week registered a project for environmental assessment to develop a gold mine near the communities of King’s Point and Springdale on the Baie Verte Peninsula. According to a registration document filed with the Department of Municipal Affairs and Environment, the mine could have a life of six years and create upwards of 150 direct jobs when operating at peak capacity. The initial estimated capital investment for the Hammerdown gold mine would be $57 million.

This is all music to the ears of King’s Point Mayor Perry Gillingham. His town of approximately 650 residents is five kilometres from the site of the proposed mine.

“It would be good for us and the overall area of Green Bay,” said Gillingham, whose council has met with the company. He understands the mine would provide well-paying jobs.

“It would be a tremendous spinoff for the local businesses in place,” said Springdale Mayor Dave Edison. With a population of almost 3,000, Springdale is the region’s largest community, and Edison said it already has a number of supply businesses that can work with the mining industry.

The site in question has a history when it comes to gold mining. Richmont Mines operated the mine as a small open pit and underground operation from 2000 to 2004. Ore from the mine was processed at the Nugget Pond processing plant, located 140 kilometres away from the site near the resettled community of Snook’s Arm. Richmont Mines ceased operations in 2004 and decommissioned the site a year later due to a low price for gold.

A conceptual rendering of the proposed Hammerdown gold mine site. — MARITIME RESOURCES CORP. – Contributed

 

Hot commodity

The commodity’s price in Canada has shown strength in recent months, at times exceeding $2,400 per ounce. According to a SaltWire Network article published last month on Anaconda Mining’s drilling plans for eastern Nova Scotia, this sort of price level has not been witnessed since the early 1970s, making it a highly profitable time to mine gold.

Gillingham and Edison both acknowledge the fact activity at the mine in the early millennium benefited their respective towns quite a bit. Both communities also have many residents currently employed in the industry who travel for work.

“There’s a lot of miners here that travel to Labrador, Alberta and Nunavut — wherever there’s mines to,” Gillingham said, adding there are likely miners nearing retirement who would love to finish their careers working close to home.

Springdale Mayor Dave Edison. — SALTWIRE NETWORK FILE PHOTO
Springdale Mayor Dave Edison. — SALTWIRE NETWORK FILE PHOTO

 

Springdale has potential housing subdivisions on the horizon and Edison expects the mine, if it proceeds, would help fill some of these homes.

“It’s easy for (council) to support this,” he said. “We’ve spoken to the CEO of this company, and they’re a reputable company.”

Although he recognizes the short-term value of the mine, Gillingham knows the project will help his town in the long run. Over the last 10 years, King’s Point has placed more emphasis on attracting tourists to the region, highlighting the natural beauty of Green Bay.

“That’s something that can continue on a yearly basis,” he said. “The mine is good. Don’t get me wrong. It will be a big boon for the area … But when that’s gone, hopefully tourists will still be here.”

The project was registered for environmental assessment July 8. The deadline for public comments is Aug. 12, with a decision due from the minister Aug. 22. According to Gillingham, drilling at the site is ongoing and it’s hoped work to develop the mine could begin in 2021.

 

Source:- TheChronicleHerald.ca

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Economy

Canada’s unemployment rate holds steady at 6.5% in October, economy adds 15,000 jobs

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OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.

Friday’s report also shed some light on the financial health of households.

According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.

That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.

People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.

That compares with just under a quarter of those living in an owned home by a household member.

Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.

That compares with about three in 10 more established immigrants and one in four of people born in Canada.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Health-care spending expected to outpace economy and reach $372 billion in 2024: CIHI

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The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.

The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.

CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.

This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.

While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.

Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.

The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.

This report by The Canadian Press was first published Nov. 7, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

The Canadian Press. All rights reserved.

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Trump’s victory sparks concerns over ripple effect on Canadian economy

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As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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