Good morning.
It is my privilege to appear before the committee today.
I would start by acknowledging that I'm joining you from Sudbury, which is located on land within the Robinson Huron Treaty territory.
I'm here in my capacity as executive director of program delivery for the Federal Economic Development Agency for Northern Ontario, also known as FedNor.
FedNor serves a dual role, both as pathfinder and funding partner, connecting the region's businesses and stakeholders to opportunities, and investing in key initiatives that lead to job creation and economic growth in our great region. In northern Ontario, this includes support for projects in key sectors that are the focus of the committee today.
The mining sector, in particular, is a key driver of northern Ontario's economy, and the region is widely recognized as Canada's centre for mining excellence. In addition to many operating mines located across the region, northern Ontario is also home to a substantial supply and service subsector that serves mines across the country and exports its products around the globe.
To support the continued growth of the mining sector, FedNor is focused on key activities including promoting the adoption and commercialization of new technologies, fostering linkages between businesses and institutions and improving trade and export performance. Since 2015, FedNor has invested more than $28 million toward 48 mining projects that have leveraged a further $106.5 million.
For the past eight years, FedNor has funded a pavilion that now showcases more than 100 mining-related businesses at the Prospectors & Developers Association of Canada—PDAC—convention. There, exhibitors have used the opportunity to form strategic alliances, strike business deals and increase exports. They have recommended some $85 million in direct economic benefits for the region.
To further support mining innovation and to reinforce links in the mining ecosystem, FedNor also works with public sector organizations, such as colleges, universities and innovation centres, with a mandate to support the mining industry or SMEs in the mining supply chain. This past summer, FedNor invested $2 million in two key battery electric vehicle projects in Greater Sudbury.
Northern Ontario's wealth of mineral deposits positions the region as a key player in the global supply chain for electric vehicle batteries and clean energy. As such, FedNor's focus on mining also includes emerging opportunities around critical minerals. As we move forward in developing the mining ecosystem, FedNor's focus is to support projects that move beyond simple extraction and into value-added production. Our goal is to maximize the benefits for northern Ontario communities, while ensuring that we do so correctly by working closely with many indigenous communities and rural communities in our region.
Speaking of which, northern Ontario is, of course, home to the Ring of Fire. This is a region in the Far North that contains concentrations of chromite and nickel worth up to $60 billion. There's enough to be mined for decades. The Ring of Fire falls within the traditional territories of several remote first nations communities and has the potential to benefit these communities, if done right, and help grow the economy at both the provincial and national levels.
FedNor has supported a variety of initiatives in these rural and remote communities to build the capacity they need in order to take advantage of the economic opportunities coming forward.
Now that I've touched on mining, I wanted to quickly touch on the forestry industry in the region.
Northern Ontario accounts for more than 75% of the province's productive woodlands, and is home to 70% of the province's mills, accounting for more than 35,000 jobs. But while the forestry sector is an important contributor to the region's economy, it faces a number of challenges. Some of these include the high costs of transportation, energy and labour, and the difficulty companies have in recruiting and retaining skilled labour.
To help address these challenges, FedNor has supported 33 projects in the forestry sector since 2015, representing an investment of more than $12.7 million. In response, northern Ontario mills have been upgrading and diversifying their operations to develop value-added products. Just last month, FedNor invested $1.7 million to support the expansion of a value-added sawmill operation in a First Nation near Thunder Bay, who is now diversifying its product line and increasing production.
In conclusion, as you can see, natural resources are vital to the economic success of northern Ontario. FedNor will continue to play a key role in supporting economic development opportunities in these sectors of growth.
We would be pleased to answer any questions.
Thank you.