Agnico Eagle to invest $14bn in its Ontario mining assets by 2030 as mine permit reforms start to pay off

The miner and the Ontario government say this investment is supported by aggressive permit reforms and accelerated approvals to build mines faster.

Recent changes to Ontario’s mining permitting process, including the new One Project, One Process, are delivering real results, positioning the province as a global leader in responsible resource development. By streamlining approvals, reducing duplication and improving coordination across ministries, Ontario has significantly shortened timelines while maintaining rigorous environmental standards and meaningful Indigenous consultation, the provincial government notes in a media statement.

The investment by Agnico Eagle will support the company's workforce of more than 4 100, as well as create up to 1 600 new jobs and adding nearly $5-billion to the province's GDP.

“Ontario is becoming the mining and critical minerals capital of the Group of 7, and this historic $14-billion investment sends a powerful message to the world: Ontario is open for business. At a time of global economic uncertainty and intensifying competition for resources, our government has acted to cut red tape, speed up responsible development and create one of the most competitive mining jurisdictions anywhere in the world.

"This landmark investment, one of the largest private-sector commitments in modern Ontario history, will create thousands of good-paying jobs, drive economic growth in the North, strengthen Indigenous partnerships and secure Ontario’s place as a global leader in responsible mining, critical minerals and resource development for decades to come,” comments Ontario Energy and Mines Minister Stephen Lecce.

The provincial government has also announced its intention to bring forward an additional package of red tape reduction to further streamline approvals for early and advanced exploration and further accelerate mining permitting timelines for expansions of existing mines.

Agnico Eagle president and CEO Ammar Al-Joundi, meanwhile, says the province is central to the company's long-term growth strategy.

"The strength of our operations today reflects years of disciplined investment in our people, our partnerships and the communities where we operate. We value our ongoing collaboration with the government of Ontario and its continued focus on creating a competitive environment for responsible resources development.

"Looking ahead, we see meaningful opportunity to build on this foundation by advancing our project pipeline responsibly, while supporting jobs, Indigenous reconciliation, skills development and long-term growth.”

Agnico Eagle's assets in Ontario include the Detour Lake and Macassa mines, as well as the Hammond Reef and Upper Beaver development projects.

The Detour Lake Underground project will expand production beneath the existing openpit operation. The underground expansion project will require about $1-billion in capital investment to extend the Detour Lake operation's mine life to 2054. The project will create about 800 jobs.

If approved, the project is projected to expand the operation's gold output to over one-million ounces a year, placing it in a rare group of high-output, long-life gold mines globally.

The Upper Beaver gold/copper project, meanwhile, will seek to redevelop a historic mine into a modern underground and openpit operation, including a mine, processing facility and related infrastructure. Agnico Eagle expects to invest more than $1-billion on the project, which will create about 800 jobs, and have a mine life of 14 years with an estimated output of 210 000 oz/y of gold and 3 600 t/y of copper.

Ontario Mining Association president Priya Tandon says Agnico Eagle's investment plans are a strong vote of confidence in Ontario’s mining sector and its workforce.

"Continued government prioritisation is driving real momentum for growth and development across the province, and Agnico Eagle’s investment reflects the strength, stability and global competitiveness of our industry. We look forward to seeing this momentum continue with further investment across the sector."

JUNIOR MINING BOOST
Meanwhile, Ontario Premier Doug Ford has announced that the provincial government is investing $10-million in the newly overhauled Ontario Junior Exploration Program (OJEP), which included the launch of an Advanced Exploration Stream that would start next year.

This investment is aimed at helping junior exploration companies and licensed prospectors find future mines by covering eligible costs for mineral exploration and development.

"With the potential to add $22-billion and 70 000 good-paying jobs to our province’s economy in the Ring of Fire alone, our critical minerals sector is key to building a stronger, more competitive and more self-reliant Ontario. By investing $10-million to support early exploration, our government is helping unlock new mineral discoveries that will drive economic growth across northern Ontario for decades to come,” the Premier says.

By helping offset early-stage expenses, Ontario is supporting prospectors and mining companies as they advance projects that can drive long-term economic growth and strengthen the province’s mining sector.  The provincial government points out that the OJEP has, to date, committed nearly $45-million in funding to 280 companies – 201 of them exploring for critical minerals.

The OJEP helps cover up to 50% of eligible costs for exploration and development projects. With enhanced funding streams introduced last year, licensed Ontario prospectors can access up to $65 000 per project (including enhanced Indigenous Participation Support) and junior mining companies will be eligible to receive up to $215 000 per project (including enhanced Indigenous Participation Support).

Funding is provided to approved projects on a first-come, first-served basis.

“To ensure Canada is a more economically sovereign and strong country, we are investing in the next generation of mines to grow our economy and create jobs. Under Ontario’s plan, 35 significant mineral projects are under way with the potential to reach production over the next decade. Ontario slashed permit timelines by 50%, emerging as Canada’s best jurisdiction and the second on earth for mining investment. We are building momentum today, announcing a dedicated Advanced Exploration Stream to get projects off the ground and get shovels in the ground faster,” comments Lecce.