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ENVIRENVIRONMENTONMENTAL ASSESSMENTAL ASSESSMENTFOR FOR THE MARTHE MARATHON PGM-CTHON PGM-CuPRPROJECT AOJECT AT MART MARATHON,THON, ONT ONTARIOARIO
STILLWATER CANADA INC.STILLWATER CANADA INC.MARATHON PGM-Cu PROJECTMARATHON PGM-Cu PROJECT
SUPPORTING INFORMATIONSUPPORTING INFORMATIONDOCUMENT No. 23 -DOCUMENT No. 23 -ECONOMIC AND SOCIAL IMPACTECONOMIC AND SOCIAL IMPACTIMPACT ASSESSMENT FOR THEIMPACT ASSESSMENT FOR THEMARATHON PGM-Cu MARATHON PGM-Cu PROJECTPROJECT
Prepared by:Prepared by:Stantec Consulting Ltd.Stantec Consulting Ltd.2042 Mills Road, Suite 112042 Mills Road, Suite 11Sidney, BCSidney, BCV8L 5X4 V8L 5X4
STILLWATER CANADA INCORPORATED
MARATHON PLATINUM GROUP
METALS – COPPER PROJECT
Socioeconomic Impacts and Benefits Study
Report submitted to:
Canadian Environmental Assessment Agency
22nd Floor, Place Bell, 160 Elgin Street
Ottawa, ON K1A 0H3
&
ONTARIO MINISTRY OF THE ENVIRONMENT
Environmental Assessment and Approvals Branch
2 Street Clair Avenue West, Floor 12A
Toronto, ON M4V 1L5
Report submitted by:
STILLWATER CANADA INCORPORATED
357 – 1100 Memorial Avenue
Thunder Bay, ON P7B 4A3
In association with:
Stantec Livio Demateo, Ph.D. Chair, Lakehead University
gck Consulting Ltd.
March 31st , 2012
ii
Contents List of Tables ................................................................................................................................................ iv
List of Figures ................................................................................................................................................ v
Abbreviations and Acronyms ....................................................................................................................... vi
1. Introduction ........................................................................................................................................... 1
1.1. Project Location ........................................................................................................................ 1
1.2. Surrounding Land Uses ............................................................................................................. 3
1.3. Exploration History of the Site .................................................................................................. 4
1.4. Project Overview ....................................................................................................................... 5
1.5. Scope of Work ......................................................................................................................... 10
2. Current Understanding of Existing Socioconoimc Conditions at the Project Site ............................... 11
2.1. Scope of the Baseline Study .................................................................................................... 11
2.1.1. Objectives ................................................................................................................... 11
2.1.2. Spatial Context ............................................................................................................ 11
2.1.3. Key Socioeconomic Indicators and Data Gathering .................................................... 13
2.2. Current Conditions in the Project Area ................................................................................... 14
2.2.1. Social Factors .............................................................................................................. 14
2.2.2. Economic Factors ........................................................................................................ 36
3. Scope of the Impacts and Benefits Study ............................................................................................ 56
3.1. Objectives ................................................................................................................................ 56
3.2. Spatial Context ........................................................................................................................ 56
3.3. Methods .................................................................................................................................. 56
3.3.1. Identification of Effects ........................................................................................................... 56
3.3.2. Effects Prediction .................................................................................................................... 57
3.3.3. Economic Effects Assessment ................................................................................................. 58
3.3.4. Valued Ecosystem Components (VECs) .................................................................................. 59
4. Assessment of Potential Effects .......................................................................................................... 61
4.1. Social Environment ................................................................................................................. 61
4.1.1. Site Preparation and Construction Phase ................................................................... 61
4.1.3. Decommissioning and Closure Phase ......................................................................... 72
4.2. Economic Environment ........................................................................................................... 73
4.2.1. Site Preparation and Construction ............................................................................. 76
iii
5. Summary and Proposed Mitigations ................................................................................................... 81
5.1. Summary of Predicted/Potential Social Effects ...................................................................... 82
5.2. Mitigation of Predicated/Potential Social Effects ................................................................... 82
5.3. Summary of Predicted/Potential Economic Effects ................................................................ 84
5.4. Mitigation of Predicted/Potential Economic Effects .............................................................. 84
6. Cumulative Effects ............................................................................................................................... 84
7. References ........................................................................................................................................... 92
iv
List of Tables
Table 2.2.1. On- and off-reserve populations for the Pic River, Pic Mobert and Pays Plat First Nations. . 18
Table 2.2.2. Household supply by tenure and value from 2006 Community Profiles. .............................. 19
Table 2.2.3. Owned and rented dwelling vacancy rates in Marathon, Terrace Bay, Manitouwadge,
Schreiber and White River. ......................................................................................................................... 20
Table 2.2.4. Inventory of fully-serviced and planned lots in Marathon, Terrace Bay, Manitouwadge,
Schreiber and White River. ......................................................................................................................... 20
Table 2.2.5. Number of rental units available in Marathon, Terrace Bay, Manitouwadge, Schreiber and
White River. ................................................................................................................................................ 20
Table 2.2.6. The number of hotel or motel rooms in Marathon, Terrace Bay, Manitouwadge, Schreiber
and White River. ......................................................................................................................................... 21
Table 2.2.7. The Top Five Increases and Decreases of Service Calls. ......................................................... 26
Table 2.2.8. Percent change in median income, rental payments and mortgage payments between 2001
and 2006 for Marathon, Terrace Bay, Manitouwadge, Schreiber and White River. .................................. 28
Table 2.2.9. Number of Ontario Works Cases in 2011 ................................................................................ 29
Table 2.2.10. Community Well-Being (CWB) scores for relevant communities. ....................................... 36
Table 2.2.11. Labour Market and Income Information From 2001 and 2006 Community Profiles ........... 40
Table 2.2.12 Tax levy for the Municipality of Marathon in 2010................................................................ 53
Table 2.2.13 Tax Levy for the Municipality of Terrace Bay in 2010. ........................................................... 54
Table 2.2.14 Tax Levy for the Municipality of Schreiber in 2010. ............................................................... 54
Table 2.2.15 Tax Levy for the Municipality of White River in 2010. ........................................................... 54
Table 2.2.16 Tax Levy for the Municipality of Manitouwadge in 2010. ..................................................... 55
Table 3.3 1 Rating Scale .............................................................................................................................. 57
Table 3.3 2 VECs used for the Marathon PGM-Cu Project Socioeconomic Effects Assessment ................ 59
Table 5.4. 1 Summary of Potential Socioeconomic Effects of Marathon PGM – Cu Project (Site
Preparation and Construction) ................................................................................................................... 86
Table 5.4. 2 Summary of Potential Socioeconomic Effects of Marathon PGM – Cu Project (Operations). 88
Table 5.4. 3 Summary of Potential Socioeconomic Effects of Marathon PGM – Cu Project (Closure) ...... 91
v
List of Figures
Figure 1.1.1: Location of the Proposed Marathon PGM-Cu Project Site near Marathon, Ontario. ............ 2
Figure 1.4.1. Existing Conditions at the Marathon PGM-Cu Project Site. .................................................... 8
Figure 1.4.2. Marathon PGM-Cu Project General Site Layout. .................................................................... 9
Figure 2.2.1. 2006 and 2011 census populations of Marathon, Terrace Bay, Manitouwadge, Schreiber
and White River. ......................................................................................................................................... 16
Figure 2.2.2. Age class distribution for the 2006 census populations of Marathon, Terrace Bay,
Manitouwadge, Schreiber and White River. ............................................................................................... 17
Figure 2.2.3. Age class distribution for the 2006 census populations of Pic River First Nation, Pic Mobert
North, Pic Mobert South and Pays Plat First Nation. .................................................................................. 18
Figure 2.2.4. Residential real estate listings on the MLS website as of February 3rd, 2011. ...................... 19
Figure 2.2.5. Employment and unemployment rate for communities in proximity to the Project
2011(Manifold). .......................................................................................................................................... 39
Figure 2.2.6. Employment and unemployment rate for First Nation communities in proximity to the
Project in 2011 (Manifold) .......................................................................................................................... 40
Figure 2.2.7. Industry participation information for Marathon in 2011 (Manifold) .................................. 41
Figure 2.2.8. Industry participation information for Terrace Bay in 2011 (Manifold) ............................... 41
Figure 2.2.9. Industry participation information for Manitouwadge in 2011 (Manifold).......................... 42
Figure 2.2.10. Industry participation information for Schreiber in 2011 (Manifold) ................................. 42
Figure 2.2.11. Industry participation information for White River in 2011 (Manifold) ............................. 43
Figure 2.2.12. Industry participation for Pic Mobert North, Pic Mobert South, Pic River First Nation and
Pays Plat First Nation. (2006 Census) ......................................................................................................... 43
Figure 2.2.13. Occupations information for Marathon in 2011 (2006 Census) ......................................... 44
Figure 2.2.14. Occupations information for Terrace Bay in 2011. (2006 Census) ..................................... 44
Figure 2.2.15. Occupations information for Manitouwadge in 2011. (2006 Census) ................................ 45
Figure 2.2.16. Occupations information for Schreiber in 2011. (2006 Census) ......................................... 45
Figure 2.2.17. Occupations information for White River in 2011. (2006 Census) ..................................... 46
Figure 2.2.18. Labour force characterized by occupation for Pic Mobert North, Pic Mobert South, Pic
River First Nation and Pays Plat First Nation. (2006 Census) ...................................................................... 46
Figure 2.2.19. Average household income information for the Marathon PGM-Cu Project area. ........... 48
Figure 2.2.20. The 60 month change in the Consumer Price Index (CPI) for all commodity groups in
Ontario and Thunder Bay. (Data from CANSIM Table 326-0020) ............................................................... 49
vi
Abbreviations and Acronyms
AANDC Aboriginal Affairs and Northern Development Canada
APS Anishinabek Police Service
BFPL Buchanan Forest Products Limited
BHP BHP Engineering Pty Ltd.
CAC Community Adjustment Committee
CAO Chief Administrative Officer
CARs Canadian Aviation Regulations
CAS Children's Aid Societies
CCAA Companies' Creditor Arrangement Act
CDAF Community Development Assistance Fund
CEA Act Canadian Environmental Assessment Act
CEA Agency Canadian Environmental Assessment Agency
CEO Chief Executive Officer
CMHC Canada Mortgage and Housing Corporation
CPI Consumer Price Index
CPP Canada Pension Plan
CPR Canadian Pacific Railway
CREA Canadian Real Estate Association
Cu Copper
CWB Community Well-Being
EA Environmental Assessment
EDC Economic Development Committee
EHT Employer Health Tax
EI Employment Insurance
EIS Environmental Impact Statement
EMRD Extraction Metallurgy Research Division
EMS Emergency Medical Services
Euralba Euralba Mining Ltd.
Fe Iron
GDP Gross Domestic Product
Geostat Geostat Systems International
GSN Grants for Student Needs
GWh Gigawatt hour
HO Harmonization Order
HSD Highway Safety Division
HST Harmonized Sales Tax
Hwy 17 Trans-Canada Highway
IBA Impact Benefit Agreements
ISSU Integrated Support Service Unit
vii
JMOCAP Jackfish Métis (Ontario Coalition of Aboriginal People)
JRP Joint Review Panel
kWh Kilowatt hours
MAC Mining Association of Canada
ManEDC Manitouwadge Economic Development Committee
MEDC Marathon Economic Development Committee
MLS Multiple Listing Service
MMAH Ontario Ministry of Municipal Affairs and Housing
MNDM Ontario Ministry of Northern Development and Mines
MNO Metis Nation of Ontario
MPGM Marathon PGM Corp.
MPI Marathon Pulp Inc.
MRSA Mine Rock Storage Area
MTCU Ontario Ministry of Training, Colleges and Universities
MVC Motor Vehicle Collision
MW Megawatts
NGO Non-governmental Organizations
NHPO Native Housing Providers of Ontario
NoC Notice of Commencement
NOHFC Northern Ontario Heritage Fund Corporation
NOI Notice of Intention
NOS National Occupancy Standards
NWR Northwest Region
O. Reg Ontario Regulation
OAHS Ontario Aboriginal Housing Services
OAHSSC Ontario Aboriginal Housing Support Services Corporation
OEA Act Ontario Environmental Assessment Act
OFIFC Ontario Federation of Indian Friendship Centres
OMA Ontario Mining Association
OMAA Ontario Métis Aboriginal Association
OMNR Ontario Ministry of Natural Resources
ONWA Ontario Native Women's Association
OPP Ontario Provincial Police
ORC Ontario Realty Corporation
P3 Canada Fund Public-Private Partnership Canada Fund
PGE Platinum group element
PGMs Platinum group metals
PMFN Pic Mobert First Nation
PMHPJV Pic Mobert Hydro Power Joint Venture
PPFN Pays Plat First Nation
viii
PRDC Pic River Development Corporation
PRFN Pic River First Nation
Project Marathon PGM-Cu Project
PSE Post-Secondary Education
PSMF Process Solids Management Facility
PSSSP Post-Secondary Student Support Program
PST Provincial Sales Tax
PWSCP Provincial Wood Supply Competitive Process
RBC Royal Bank of Canada
RCMP Royal Canadian Mounted Police
RDP Results Driven Policing
RIDE Reduce Impaired Driving Everywhere
RSMIN Red Sky Métis Independent Nation
SAP Strategic Action Plan
SCI Stillwater Canada Inc.
SCI Stillwater Canada Inc.
SFL Sustainable Forest Licence
SID Supporting Information Document
SWC Stillwater Mining Company
SNSMC Superior North Shore Métis Council
ToR Terms of Reference
TSM Towards Sustainable Mining
UCEP University College Entrance Preparation Program
VA Voluntary Agreement
VEC Valued Ecosystem Component
WSIB Workplace Safety and Insurance Board
1. Introduction Stillwater Canada Inc. (SCI) proposes to develop a platinum group metals (PGMs), copper (Cu)
and possibly iron (Fe) open-pit mine and milling operation near Marathon, Ontario. A Notice of
Commencement (NoC) of an environmental assessment (EA) in relation to the proposed
Marathon PGM-Cu Project (the “Project”) was filed by the Canadian Environmental Assessment
Agency (CEA Agency) under Section 5 of the Canadian Environmental Assessment Act on April
29, 2010 (updated July 19, 2010).
The EA was referred to an independent Review Panel by the Federal Minister of the
Environment on October 7, 2010. On March 23, 2011 SCI entered into a Voluntary Agreement
(VA) with the Province of Ontario to have the Project subject to the Ontario Environmental
Assessment Act (OEA Act). This agreement was the instrument that permitted the provincial
government to issue a Harmonization Order (HO) under Section 18(2) of the Canada-Ontario
Agreement on Environmental Assessment Cooperation to establish a Joint Review Panel for the
Project between the Minister of the Environment, Canada and the Minister of the Environment,
Ontario.
The HO was issued on March 25, 2011. The Terms of Reference (ToR) for the Project
Environmental Impact Statement (EIS) and the agreement establishing the Joint Review Panel
(JRP) were issued on August 8, 2011.
The following provides an overview of the proposed development including its location,
surrounding land uses, the exploration history of the site and the primary conceptual features
of the mining and milling facilities. The information provided below, in the Environmental
Impact Statement Report and supporting technical studies is based on the conceptual mine
design for the Project. The conceptual design provides planning level information for the
environmental assessment process. Final detailed design will commence following EA approval
in concordance with the concepts presented herein.
1.1. Project Location
The Project is located approximately 10 km north of the Town of Marathon, Ontario (Figure
1.1.1). The town, with a population of 3,353 (2011 Census), is situated adjacent to the Trans-
Canada Highway 17 (Hwy 17) on the northeast shore of Lake Superior, about 300 km east and
400 km northwest (by highway) of Thunder Bay and Sault Ste. Marie, respectively.
The centre of the Project footprint sits at approximately 48° 47’ N latitude and 86° 19’ W
longitude. The Project site is in an area characterized by relatively dense vegetation, comprised
largely of a birch and, to a lesser extent, spruce-dominated mixed wood forest. The terrain is
2
moderate to steep, with frequent bedrock outcrops and prominent east to west oriented
valleys. The climate of this area is typical of northern areas within the Canadian Shield, with
long winters and short, warm summers.
Figure 1.1.1: Location of the Proposed Marathon PGM-Cu Project Site near Marathon, Ontario
3
1.2. Surrounding Land Uses
The Project site lies partially within the municipal boundaries of the Town of Marathon, as well
as partially within the unorganized townships of Pic, O’Neil and McCoy. The primary zoning
designation within the Project Site is ‘rural’.
In the immediate vicinity of the Project there are several authorized aggregate sites, including
SCI’s licensed aggregate site located to the northeast of Hwy 17 along the existing site access
road (Camp 19 Road).
The Marathon Municipal Airport (CYSP), which operates as a Registered Airport (Aerodrome
class) under the Canadian Aviation Regulations (CARs; Subsection 302), is adjacent to, and
south of the Project site. The airport occupies a land area of approximately 219 hectares and is
accessed from Hwy 17.
Several First Nations and Métis peoples claim the Project site as falling within their traditional
land use boundaries. Based on Aboriginal accounts, prior to the construction of the forestry
road, the land and water uses associated with (or close to) the site would have typically been
limited to the Pic River corridor, the Bamoos Lake-Hare Lake-Lake Superior corridor and the
Lake Superior shoreline and near-shore area, rather than the interior of the Project site.
Traditional land and water uses (or rights conferred by Treaty) that can be ascribed to the site
could include:
• Hunting;
• Trapping;
• Fishing; and,
• Plant harvesting for food, cultural and medicinal uses.
Primary industries supporting the Town of Marathon, as well as the region, have historically
been forestry, pulp and paper, mining and tourism. The Project site is located within the Big Pic
Forest Management Area. The Big Pic Forest includes Crown land east and north of Lake
Superior and is generally north, south and west of the community of Manitouwadge and
includes the communities of Marathon, Caramat and Hillsport.
Until July 2010 the forest was managed under the authority of a Sustainable Forest License
(SFL), which was held by Marathon Pulp Inc. This SFL was revoked, with the forest reverting to
the Crown as a Crown Forest. Until recently, Marathon Pulp Inc. (MPI) operated a kraft pulp
mill in Marathon on the shore of Peninsula Harbour. The mill announced its indefinite shut
down (effective at the end of February 2009) on February 11, 2009, and as a result there has
4
been a significant downturn in the local economy. A second mill operated in Terrace Bay was
temporarily closed in December 2011.
The Hemlo Mining Camp is located 30 km to the southeast. There are currently two mines in
production at the Camp (David Bell Mine, Williams Mine), which are estimated to be in
operations until 2025.
1.3. Exploration History of the Site
Exploration for copper and nickel deposits on the Project site started in the 1920s and
continued until the 1940s with the discovery of titaniferous magnetite and disseminated
chalcopyrite occurrences. During the past four decades, the site has undergone several phases
of exploration and economic evaluation, including geophysical surveys, prospecting, trenching,
diamond drill programs, geological studies, resource estimates, metallurgical studies, mining
studies, and economic analyses. These studies have successively enhanced the knowledge base
of the deposit.
In 1963, Anaconda acquired the Marathon property and carried out systematic exploration
work including diamond drilling of 36,531 m in 173 drill holes. This culminated in the discovery
of a large copper-PGM deposit. Anaconda discontinued further work on the project in the early
1980s due to low metal prices at the time.
In 1985, Fleck purchased a 100% interest in the Marathon PGM-Cu Project with the objective of
improving the project economics by focusing on the platinum group element (PGE) values of
the deposit. The Fleck drilling totaled 3,615 m in 37 diamond drill holes. In 1986, H.A. Symons
carried out a feasibility study for Fleck based on a 9,000 tonnes per day conventional flotation
plant with marketing of copper concentrate and Kilborn Limited carried out a prefeasibility
review for Fleck that included preliminary results from the Lakefield pilot plant tests (Kilborn
Limited, 1987). The feasibility study indicated a low internal rate of return which was
confirmed by Teck Corporation who concluded the project was uneconomic due to low metal
prices at the time. On June 10, 1998, Fleck changed its name to PolyMet Mining Corp.
In 2000, Geomaque acquired certain rights to the Marathon PGM-Cu Project through an option
agreement with Polymet. Geomaque and its consultants carried out a study of the economic
potential of the Marathon PGM-Cu Project. The study included a review of the geology and drill
hole database, interpretation of the mineralized zones, statistics and geostatistics,
computerized block model, resource estimation, open pit design and optimization, metallurgy,
process design, environmental aspects, capital and operating cost.
Marathon PGM Corp. acquired the Marathon PGM-Cu deposit from Polymet in December 2003.
Marathon PGM Corp. funded programs of advanced exploration and diamond drilling on a
5
continuous basis between June 2004 and 2009. Approximately 320 holes and 65,000 m were
drilled from 2007 to 2009 to define and expand the resource and for condemnation holes
outside of the pit area. A feasibility study was published in 2008 and updated in January 2010.
Stillwater Mining Company (SWC) and Marathon PGM entered into an agreement on
September 7, 2010 pursuant to which SWC would acquire all of the outstanding shares of
Marathon PGM. The acquisition agreement received ministerial approval under the Investment
Canada Act on November 24, 2010 and the agreement closed on November 30, 2010. On
December 31, 2010 Stillwater Mining Company formed a Canadian corporation, Stillwater
Canada Inc. In March 2012, MC MINING LTD (MC) purchased 25% interest in Stillwater Canada
Inc. who is the proponent of the Marathon PGM-Cu Project.
1.4. Project Overview
The Project is based on the development of an open pit mining and milling operation. The
conceptual general layout of the components of the mine site, the transmission line corridor
and access road is provided in Figure 3 below. One primary pit and a satellite pit complex to
the south (currently envisaged to be comprised of four satellite pits) are proposed to be mined.
Ore will be processed (crushed, ground, concentrated) at an on-site processing facility. Final
concentrates containing copper and platinum group metals will be transported off-site via road
and/or rail to a smelter and refinery for subsequent metal extraction and separation. The total
mineral reserve (proven and probable) is estimated to be approximately 91.5 million tonnes. It
is possible that an iron concentrate may also be produced, depending upon the results of
further metallurgical testing and market conditions at that time.
During the operations phase of the Project, ore will be fed to the mill at an average rate of
approximately 22,000 tonnes per day. The operating life of the mine is estimated to be
approximately 11.5 years. The construction workforce will average approximately 400 people
and will be required for between 18 and 24 months. During operations the work force will
comprise an estimated 365 workers. The mine workforce will reside in local and surrounding
communities, as well as in an Accommodations Complex that will be constructed in the Town of
Marathon.
Approximately 288 million tonnes of mine rock1 will be excavated. It is estimated that between
eighty five to ninety percent of this material is non-acid generating (NAG) and will be
permanently stored in a purposefully built Mine Rock Storage Area (MRSA) located east of the
primary pit. The NAG or so-called Type 1 mine rock will also be used in the construction of
access roads, dams and other site infrastructure as needed. Drainage from the MRSA will be
collected, stored, treated and discharged as necessary to the Pic River. During mine operations,
1 Mine rock is rock that has been excavated from active mining areas but does not have sufficient ore grades to
6
about 20 million tonnes of mine rock could have the potential to generate acid if left exposed
for extended periods of time. This mine rock is referred to as Type 2 mine rock or potentially
acid generating (PAG). The Type 2 mine rock will be managed on surface during mine
operations in temporary stock piles with drainage directed into the open pits. This material will
be relocated to the bottom of the primary and satellite pits and covered with water to prevent
potential acid generation and covered with Type 1 materials.
Process solids2 will be managed in the Process Solids Management Facility (PSMF), as well as in
the satellite pit complex. The PSMF will be designed to hold approximately 61 million m3 of
material, and its creation will require the construction of dams. Two streams of process solids
will be generated. An estimated 85 to 90% of the total amount of process solids produced will
be non-acid generating, or so-called Type 1 process solids. The remaining ten to fifteen percent
of the process solids could be potentially acid generating and referred to as Type 2 process
solids. The Type 2 process solids will be stored below the water table in the PSMF or below
water in the pits to mitigate potential acid generation and covered with Type 1materials.
Water collected within the PSMF, as well as water collected around the mine site other than
from the MRSA will be managed in the PSMF for eventual reclamation in the milling process.
Excess water not needed in the mill will be discharged, following treatment as is necessary, to
Hare Lake.
Access to the Project site is currently provided by the Camp 19 Road, opposite Peninsula Road
at Hwy 17. The existing road runs east towards the Pic River before turning north along the
river to the Project site (approximately 8 km). The existing road will be upgraded and utilized
from its junction with Hwy 17 for approximately 2.0 km. At this point a new road running north
will be constructed to the future plant site. The primary rationale for developing the new road
is to move traffic away from the Pic River. The new section of road will link two sections of
forest access roads located on the site.
Power to the Project site will be provided via a new 115 kV transmission line that will be
constructed from a junction point on the Terrace Bay-Manitouwadge transmission line (M2W
Line) located to the northwest of the primary pit. The new transmission line will run
approximately 4.1 km to a substation at the mill site. The width of the transmission corridor
will be approximately 30 m.
Disturbed areas of the Project footprint will be reclaimed in a progressive manner during all
Project phases. Natural drainage patterns will be restored as much as possible. The ultimate
goal of mine decommissioning will be to reclaim land within the Project footprint to permit
2 Process solids are solids generated during the ore milling process following extraction of the ore (minerals) from the
host material.
7
future use by resident biota and as determined through consultation with the public, Aboriginal
peoples and government. A certified Closure Plan for the Project will be prepared as required
by Ontario Regulation (O.Reg.) 240/00 as amended by O.Reg.194/06 “Mine Development and
Closure under Part VII of the Mining Act” and “Mine Rehabilitation Code of Ontario”.
Maps showing the existing features and topography of the site, as well as the proposed
conceptual development of the site are provided in Figure 1.4.1 and Figure 1.4.2 below.
8
Figure 1.4.1. Existing Conditions at the Marathon PGM-Cu Project Site
9
Figure 1.4.2. Marathon PGM-Cu Project Conceptual General Site Layout
10
1.5. Scope of Work
The construction and operation of the mine will likely influence the socioeconomic
characteristics of a number of local and regional communities, including Métis members and
neighbouring First Nations. To this end, it was first necessary to develop community and
infrastructure capacity profiles to understand the baseline social, economic, cultural and health
characteristics of potentially affected communities. The results of baseline program can be
found in the supplemental report entitled Stillwater Canada Incorporated Marathon Platinum
Group Metals – Copper Project Socioeconomic Baseline Study.
Following the development of the baseline study, the potential impacts (positive and/or
negative) of the proposed mine development on local and regional socioeconomic conditions
were assessed and described in the following Supporting Information Document (SID) entitled
Socioeconomic Impacts and Benefits Report. This particular SID provides the technical
assessment of the interactions and potential effects of the Project on socioeconomic conditions
within the EIS study area.
11
2. Current Understanding of Existing Socioconoimc Conditions at the
Project Site
2.1. Scope of the Baseline Study 2.1.1. Objectives
The construction, operation and closure of the mine will likely impact and benefit the
socioeconomic characteristics of a number of local and regional communities, including First
Nations and Métis. Community profiles and infrastructure capacity evaluations were essential
to understanding the baseline social, economic, cultural and health characteristics of potentially
affected communities. To gain this understanding, SCI developed the baseline program. The
objective of the socioeconomic baseline study was to provide key information on the social,
economic, cultural, community and health environments that could be potentially affected by
the proposed development.
2.1.2. Spatial Context
The baseline socioeconomic program focused on communities within a 100-kilometre travel
distance (1-hour and eleven minute drive) of the Project (Figure 2.1.1). The limiting distance of
100 kilometres was utilized to determine the EIS socioeconomic study area, as it was deemed a
reasonable commute distance to the Project site. As a result, the EIS socioeconomic study area
includes the following communities:
Marathon;
Terrace Bay;
Manitouwadge;
Schreiber;
White River;
Pic River First Nation;
Pic Mobert First Nation; and,
Pays Plat First Nation.
12
Figure 2.1.1. Communities within 100 kilometres of the Marathon PGM-Cu Project site
From a local perspective, the primary focus of the baseline program is the Town of Marathon,
which is located only a few kilometres from the Project site. From a regional perspective,
Schreiber, Terrace Bay, Manitouwadge and White River are of significant interest; though
generally, local communities proximate to the Project site identify Thunder Bay as their regional
centre.
Several First Nation and Métis groups exercise their traditional Treaty rights in the project area.
Three First Nations that have indicated their rights may be affected by the Project; The
Ojibways of Pic River First Nation (PRFN); Pic Mobert First Nation (PRFN); and Pic Mobert First
Nations (PMFN – includes North and South).
The Pic River Reserve is located on the north shore of Lake Superior at the mouth of the Pic
River south of Marathon. The reserve is 316.6 ha in size and serves as the land-base for the
PRFN. The PRFN is the only FN that has expressed a direct interest in the Project that has
explicitly defined what they believe to be their traditional territory. They have defined their
traditional territory in terms of an “exclusive claim area”, which comprises approximately 1
million ha, as well as a “shared claim area”, which comprises an additional approximately 2.7
million ha. PRFN initiated an application to the Ontario Superior Court in 2003 seeking exclusive
title to the exclusive claim area and joint title to the shared claim area. The claim remains
13
before the courts and no hearing date has been set to our knowledge. The PRFN reserve is
located approximately 25 kilometres to the southwest of the project site.
According to a recent report provided to SCI by PRFN “the land” from this perspective not only
contributes to the cultural identity of the Ojibway peoples, it is central to the formation of their
cultural identities, and how the Ojibway distinguish themselves from others, both collectively
and individually.
PRFN reports extensive use of the Project area for traditional land and resource related
pursuits. The PRFN have indicated that the Project site is one of a small number of areas within
their asserted traditional lands utilized for such purposes. This is understood to be because the
site is relatively close to the Pic River Reserve and in particular can be accessed by an existing
road and is at least in part accessible via the Pic River, which historically would have been a
significant north-south trade and travel route. Further details on resource and land uses for
traditional purposes are provided in Section 5.11.7 of the Environmental Impact Statement (EIS)
Main Report (EcoMetrix 2012).
Pic Mobert First Nation (PMFN) and Pays Play First Nation (PPFN), which are 75 kilometres to
the east and 90 kilometres to the west, respectively, from the Project site.
In additon to the First Nation communities, there are also three Métis organizations that have
indicated their traditional rights could be affected by the project; The Métis Nation of Ontario
(Northshore Métis Council [MNO]), Red Sky Métis Independent Nation (RSMIN) and Jackfish
Métis (Ontario Coalition of Aboriginal People [JMOCAP]). Although they don’t have a specific
community in the region, they have indicated that some of their registered membership might
live in the First Nation communities or in surrounding municipalities. Therefore, for the
purpose of this study it will be assumed that the impacts and benefits for Métis community in
the region are being assessed.
2.1.3. Key Socioeconomic Indicators and Data Gathering
The Socioeconoimc Baseline Report focussed on the following types of data:
Social considerations – administration, population, housing, family characteristics, education, health services and programs, emergency services, crime and justice, poverty and social issues, community services, programs and facilities, transit, transportation and transport, utilities and community well-being and quality of life; and,
Economic considerations – labour market analysis, employment and unemployment, income levels, cost of living, real estate, economic development and government funding.
Cultural Considerations – First Nation and Non-First Nation.
Up-to-date information was collected through literature searches of existing social, economic,
health and cultural studies produced by academics, government agencies and other
14
organizations. Upon completion of the desktop research, a gap analysis was performed to
highlight areas necessitating further research and inquiry. The apparent data gaps were filled
via a field study program.
The field study was conducted via interviews (phone and in person) with key individuals and
groups in the study area to ascertain qualitative information and context. Interviewees
included government agency staff, social and health service providers, community
organizations and groups, political organizations, school board staff, municipal staff, business
people, economic development agencies and First Nations.
2.2. Current Conditions in the Project Area 2.2.1. Social Factors
Overall, municipal residents consider the quality of life in their communities to be excellent. All
the municipalities within proximity to the Project have modern telecommunications
infrastructure, excellent health and social services and abounding recreational opportunities.
The region is characterized by low crime rates and affordable housing. Residents feel that the
area is an ideal location in which to live and work.
Three First Nations fall within the defined area of socioeconomic study for the EIS, including
PRFN, PMFN and PPFN. Indirectly included in the First Nation studies are the Métis groups:
MNO, RSMIN and JMOACP. Some of the First Nation communities within the project area have
low Community Well-Being (CWB) scores (Table 2.2.8) when compared to neighbouring
municipalities. The First Nations are moving towards attaining similar infrastructure and
amenities as their non-First Nation counterparts. Each community has been implementing their
economic development projects and capacity building initiatives to improve the overall quality
of life. The results of the Baseline Socioeconomic Report for all communities are presented in
the following sections.
2.2.1.1. Administration
The Municipal Act is a consolidated statute governing the extent of powers and duties, internal
organization and structure of municipalities in Ontario. The new Municipal Act, which took
effect on January 1st, 2003, represents the first comprehensive overhaul of Ontario’s municipal
legislation in 150 years and is the cornerstone of the administration of municipalities in Ontario.
As outlined in the Act, municipalities are governed by municipal councils. The role of municipal
councils is to make decisions about municipal financing and services. In Ontario, the head of a
local (lower or single tier) municipal council is either called the mayor or reeve. The members
of council may be called councillors or aldermen.
15
A local municipality may be called a city, a town, a township, a municipality or a village and can
also be referred to as a lower tier municipality. Local or lower tier municipalities are also a part
of a higher level of municipal or upper tier government, such as a county, region or district.
Marathon is a lower tier municipality within the District of Thunder Bay.
Marathon, Terrace Bay, Manitouwadge and Schreiber are all lower-tier municipalities within
the District of Thunder Bay while White River is a lower-tier municipality within the Algoma
District. The municipal government of these municipalities includes a democratically elected
mayor and council all of which consist of 5 members.
A First Nation can hold an election using one of three different electoral methods. The first
method is an election system that is empowered through provisions in the Indian Act. Most
Canadian First Nations utilize this electoral method, which grants a Chief and Council two-year
office terms.
The second election method is a unique and customized election code established by the First
Nation to better represent their needs.
The third, and least employed option, are provisions of a self-governing agreement. Self-
government agreements dictate an arrangement for First Nations to govern their internal
affairs and receive larger control, responsibility and decision-making authority. These
agreements encompass a variety of governance pillars including an electoral code.
The PRFN and PMFN elect a Chief and Council to office by the provisions outlined in the Indian
Act while PPFN elects a Chief and Council through a customized electoral code. Office terms
are 2 years in each First Nation with election dates varying by community.
The Métis Nation of Ontario (MNO) was founded in the early 1990s and has a democratic,
province-wide governance structure and electoral process; it is the only recognized provincial
governance structure for Métis in Ontario. Every four years in May, people of the MNO have
the voting opportunity to choose their provincial and community council leadership. The
provincial electoral positions are: President; Chair; Co-Chair; Secretary-Treasurer; Regional
Councillor in his/her region; and, a Post-secondary Representative.
Furthermore, several community councils have also been established through signed
community charter agreements and work directly with the MNO. Community councils operate
in accordance with MNO Charter Agreements, which give councils the mandate to govern.
There are currently 21 community councils and the electoral positions are: President; Chair;
Senator; Secretary; Treasurer; Woman Representative; Youth Representative; and, Councillors.
16
The MNO community council located in the Project area is the Superior North Shore Métis
Council. The head office is located in Terrace Bay, Ontario.
The Métis groups of Red Sky Métis Independent Nation (RSMIN) and Jackfish Métis (Ontario
Coalition of Aboriginal People) (JMOACP) are independent groups to that of the MNO. The
Métis people that belong to RSMIN are descendants that were recognized by the Crown as
beneficiaries and annuitants under the Robinson Superior Treaty of 1850. There is no
governance information available for the RSMIN or JMOACP Métis organizations.
2.2.1.2. Population
The 2011 Statistics Canada data detail the population fluctuation in the municipalities in the
Project area since 2006. All of the municipalities have experienced decreased population levels
in 2011 with the exception of Schreiber. Schreiber observed a positive population increase of
25 percent, while the communities of Marathon, Terrace Bay, Manitouwadge and White River
had a population decline between -8.5 percent and -27.8 percent. The population changes are
expressed in Figure 2.2.1. Analysis of population demographics relied heavily on 2006 data as
public release of other analyzed components of the 2011 census are not yet available. In the
following sections, 2006 data are discussed.
Figure 2.2.1. 2006 and 2011 census populations of Marathon, Terrace Bay, Manitouwadge, Schreiber and White River
While the populations are roughly equally divided by gender, there are significant differences in
the age class distributions. Each of the municipalities has experienced a decline in the 25-44
years of age bracket while the 55-64 years of age bracket experienced increases. The decrease
in the 25-44 years of age bracket decreased by 33.3 to 46.8 percent and the 55-64 years of age
17
bracket increased by 20 to 37.9 percent. The age class distributions of the populations of
Marathon, Terrace Bay, Manitouwadge, Schreiber and White River are displayed in Figure 2.2.2.
Source: Statistics Canada, 2001 and 2006 Census Community Profiles
Figure 2.2.2. Age class distribution for the 2006 census populations of Marathon, Terrace Bay, Manitouwadge, Schreiber and White River
To attract youth back to the area, the municipalities must offer meaningful employment. As
the population ages in Marathon, there will be numerous positions available in a variety of
sectors, including mining, green energy, manufacturing and health care. As employment
opportunities like the Project emerge, municipalities in close proximity will be able to attract
youth back to the area and rectify the imbalanced population demographic.
According to the Statistics Canada 2006 census data, the population of PRFN and PPFN
increased 10.7 percent and 21.5 percent respectively; while PMFN experienced a decrease in its
population. The census data for PMFN is split between two traditional settlements, North and
South. Pic Mobert North experienced a decrease in population of 18 percent and Pic Mobert
South experienced a 25.7 percent decrease.
The on- and off-reserve population for each First Nation is presented in Table 2.2.1.
-
100
200
300
400
500
600 N
um
be
r o
f In
div
idu
als
Age Class Distribution of 2006 Census Population
Marathon
Terrace Bay
Manitouwadge
Schreiber
White River
18
Table 2.2.1. On- and off-reserve populations for the Pic River, Pic Mobert and Pays Plat First Nations
The age class distribution of the populations in the First Nations by 5-year age classes is
displayed in Figure 2.2.3. The populations of the First Nations are relatively young, as PRFN and
PPFN have 42 percent of their population under the age of 25 and PMFN has 40 percent.
Figure 2.2.3. Age class distribution for the 2006 census populations of Pic River First Nation, Pic Mobert North, Pic Mobert South and Pays Plat First Nation
2.2.1.3. Housing
The households, including types and values, in the area are presented in Table 2.2.2. The
comparison of population and dwelling data shows expected similarities, as the population in
the area decreased and the number of occupied private dwellings decreased as well.
Pic River First Nation 510 497 1,007
Pic Mober First Nation 336 510 846
Pays Plat First Nation 79 x 79
On-Reserve
PopulationCommunity
Off-Reserve
PopulationTotal
-
5
10
15
20
25
30
35
40
45
50
Nu
mb
er
of
Ind
ivid
ual
s
Age Class Distribution for 2006 Census Population
Pic River
Pic Mobert N
Pic Mobert S
Pays Plat
19
Table 2.2.2. Household supply by tenure and value from 2006 Community Profiles
Generally, housing vacancy rates of 5 percent for rental units and 2 percent for ownership stock
are thought to be sufficient for accommodating reasonable housing choices (Karakas, 2009).
Utilizing the current listings on the Multiple Listing Service (MLS) website operated by the
Canadian Real Estate Association and the number of owned dwellings according to the 2006
census, vacancy rates were calculated. Figure 2.2.4 displays the residential listings available in
the area.
Source: MLS listings as of February 3rd, 2011.
Figure 2.2.4. Residential real estate listings on the MLS website as of February 3rd, 2011 The vacancy rates are displayed in Table 2.2.3. It is important to note that owned vacancy rates
can be considerably higher when the number of owned dwellings is compared to the total
private dwellings in the community.
Marathon Terrace Bay Manitouwadge Schreiber White River
Total private dwellings 1,678 838 1,212 594 443
Occupied private dwellings 1,490 690 955 400 355
Single-detached houses (%) 78.9% 89.9% 81.7% 82.5% 67.6%
Semi-detached houses (%) 0.0% 3.6% 4.7% 5.0% 14.1%
Row houses (%) 5.0% 1.4% 3.7% 0.0% 0.0%
Apartments, duplex (%) 7.00% 0.0% 0.0% 2.5% 0.0%
Less than 5 storeys apartments (%) 0.7% 5.8% 4.2% 10.0% 15.5%
More than 5 storeys apartments (%) 0.0% 0.0% 0.0% 0.0% 0.0%
Other dwellings (%) 0.0% 0.0% 5.8% 2.5% 2.8%
Number of owned dwellings 1,115 610 740 330 255
Number of rented dwellings 380 80 210 70 100
Average value of owned dwelling 72,905$ 75,918$ 127,696$ 52,395$ 82,921$
Source: Statistics Canada, 2001 and 2006 Census Community Profiles
0
2
4
6
8
10
12
14
Nu
mb
er
of
List
ings
Residential Real Estate Listings
Terrace Bay
Marathon
Manitouwadge
White River
20
Table 2.2.3. Owned and rented dwelling vacancy rates in Marathon, Terrace Bay, Manitouwadge, Schreiber and White River.
Although there are a limited number of listings on the MLS in several municipalities, there is an
inventory of fully serviced lots available for immediate purchase. Table 2.2.4 lists the number
of lots available and planned in the area. If these lots are included in the calculation of the
vacancy rate, the area would have a healthy owned-dwelling vacancy rate.
Table 2.2.4. Inventory of fully-serviced and planned lots in Marathon, Terrace Bay, Manitouwadge, Schreiber and White River
Utilizing data provided by the municipality, Table 2.2.5 lists the number of rental units available
in the area.
Table 2.2.5. Number of rental units available in Marathon, Terrace Bay, Manitouwadge, Schreiber and White River
The vacancy rate for rented dwellings in the area is well above the desired level of 5 percent,
which can offer appropriate accommodations for short-term residents such as construction
workers. Rental units can also provide new, permanent residents attracted by the Project with
adequate time to select an existing house on the market or build a new home.
Municipality Owned Vacancy Rate Rental Vacancy Rate
Marathon 1.7% 19.0%
Terrace Bay 3.6% 19.5%
Manitouwadge 5.0% 10.0%
Schreiber 1.5% 51.0%
White River 8.0% 10.0%
Municipality Serviced Lots Planned Lots
Marathon 20 80
Terrace Bay 15 62
Manitouwadge 0 50
Schreiber 28 0
White River n/a n/a
Municipality Rental Units
Marathon 80
Terrace Bay 16
Manitouwadge 15
Schreiber 36
White River 10
Total 157
21
There are also a number of hotel and motel rooms available in the area to accommodate an
influx of temporary workers during the Site Preparation and Construction phase of the Project.
The number of rooms is included in Table 2.2.6 below.
Table 2.2.6. The number of hotel or motel rooms in Marathon, Terrace Bay, Manitouwadge, Schreiber and White River
Many First Nations in Canada need more housing and/or better quality housing, as
overcrowding and inadequate housing are of particular concern on Reserves. Inadequate
housing poses health and safety risks, creates an unhealthy growing environment for children
and is linked to several health and social problems.
The Indian Act gives the Minister of Aboriginal Affairs and Northern Development Canada
(AANDC) the right to determine whether any purposes for which lands in a Reserve are used is
for the use and benefit of the band. Title to land within the Reserve may only be transferred to
the band or to individual Band Members. Reserve lands may not be seized legally, nor is the
personal property of a Band or Band Member living on a reserve subject to charge, pledge,
mortgage, attachment, levy, seizure distress or execution in favour or at the instance of any
person other than an Indian or a band (section 80 (1) of the Indian Act).
PRFN is committed to providing affordable housing for all its members. They do this through
various programs and initiatives and coordinate their efforts towards the improvement of
housing on PRFN. To assist their members in this endeavour, the First Nation developed the
First Nation Capital and Housing Program with the following components:
Direct Lending;
Canada Mortgage and Housing Corporation (CMHC); and
Other programs.
In 2011, PRFN was provincially recognized for successfully completing its housing strategy. Of
the 167 dwellings on the reserve, 120 are on track to eventually have occupants own their
homes. Over the last 5 years, the community has built 46 new homes and repaired an
additional 40.
Municipality Hotel Rooms
Marathon 157
Terrace Bay 97
Manitouwadge 0
Schreiber 118
White River 101
Total 473
22
The Housing Department for PMFN consists of the Housing Manager, Housing Maintenance and
File Clerk. The department promotes the services and programs offered by the Ontario
Aboriginal Housing Services (OAHS) as the vehicle of choice for community members to obtain a
house off-reserve. Members of PMFN interested in obtaining a home on-reserve are instructed
to fill out an application and submit it to the Housing Department for review.
The community of Pays Plat First Nation has limited available housing information. There are 25
housing units that exist in in the community. Of these homes, 23 are serviced with the
communal water system and septic tanks. The remaining 2 homes do not have services. There
was no housing information available for PPFN.
2.2.1.4. Education
The municipalities in proximity to the Project offer educational programs at the primary,
secondary and post-secondary levels. Primary education is provided at:
Margaret Twomey Public School in Marathon;
Holy Saviour Separate School in Marathon;
École Val-des-Bois in Marathon;
Terrace Bay Public School in Terrace Bay;
St. Martin Catholic School in Terrace Bay;
École catholique Franco-Terrace in Terrace Bay;
Manitouwadge Public School in Manitouwadge;
Our Lady of Lourdes Catholic School in Manitouwadge;
École publique Franco-Manitou in Manitouwadge;
Schreiber Public School in Schreiber;
Holy Angels School in Schreiber; and,
St. Basil School in White River.
Secondary education is provided at:
Marathon High School in Marathon;
École Secondaire Cité-Supérieure in Marathon;
Lake Superior High School in Terrace Bay; and,
Manitouwadge High School in Manitouwadge.
These 16 schools are administered by 5 different school boards, including Superior-Greenstone
District School Board, Superior North Catholic District School Board, Huron-Superior Catholic
District School Board, Conseil scolaire Public du Grand Nord de l’Ontario and Conseil scolaire de
district catholique des Aurores boreales.
23
Confederation College operates a satellite campus in Marathon, which acts as the coordinating
focal point for college level education programming in the area. Furthermore, a number of
post-secondary institutions operate facilities within a 400-kilometer radius (4-hour drive) east
of Marathon, and a 300-kilometer radius (3-hour drive) west of Marathon. These educational
institutions include Confederation College – Main Campus (Thunder Bay), Lakehead University
(Thunder Bay), Algoma University College (Sault Ste. Marie) and Sault College (Sault Ste. Marie).
The schools offer a variety of training, education and research programs and services that range
from medicine to mining.
The education statistics of the area demonstrate that residents are well-trained and highly
educated. Marathon, Terrace Bay, Manitouwadge, Schreiber and White River can offer a
significant number of skilled and knowledgeable workers; an asset to any company seeking to
establish operations in or near Marathon. The skills and trades of the workforce in the area can
easily accommodate different natural resource development sectors, such as mining, forestry
and green energy industries.
In the 5 municipalities, between 68 and 94 percent of the population aged 25 to 34 years has
attained education or training at or beyond the high school level. This includes between 20 and
40 percent with high school certificates or equivalent, between 0 and 14 percent who have
received an apprenticeship or trade certificate or diploma, between 16 and 33 percent who
have received a college equivalent certificate or diploma and between 12 and 25 percent who
have received a university diploma or degree.
PRFN offers elementary and secondary educational services within the First Nation to its
membership. The community employs a Director of Education and the role of this position is to
ensure that education is administered throughout the community as a foundation to enable
participation in the social, economic and political advancements of PRFN. There are four
education programs that are offered to individuals residing in the community, including
elementary, secondary, special education and post-secondary student support programs.
PMFN ensures that education is provided to its Band Members. Netamisakomik Center for
Education is located on the Reserve to provide education to students from Junior Kindergarten
through to Grade 8. The education coordinator for the First Nation is Paul Kwissiwa. Ten
professionals, including teachers, a librarian and administrative personnel, staff the institution.
PMFN also ensures that post-secondary education support is available through application
assistance.
Education is administered to PPFN Band Members through the provisions set forth in the Indian
Act. PPFN ensures that funding of student support services such as transportation, counselling,
financial assistance and attendance checks are available. AANDC provides Post-Secondary
24
Education (PSE) support to eligible PPFN students through the Post-Secondary Student Support
Program (PSSSP) and the University College Entrance Preparation Program (UCEP). This may
assist PPFN students with the cost of tuition fees, books and travel and living allowances, when
applicable.
In PRFN, 100 percent of the population aged 25 to 34 years has acquired a high school
certification or equivalent. The situation in PMFN and PPFN is different with 67 to 75 percent
of individuals aged 25 to 34 years with no certificate, diploma or degree.
2.2.1.5. Health Services and Programs
Quality and accessible health care and social services are attractive features of Marathon and
the surrounding area. Their healthcare facilities and progressive health-related services and
programs provide excellent care to benefit the residents of Marathon and its surrounding
communities.
Each municipality is serviced by its own health care facility offering services ranging from family
medicine, maternity and paediatrics, emergency and tele-medicine and consultation. The
following hospitals and clinics service the area:
Wilson Memorial General Hospital in Marathon;
Marathon Family Health Team in Marathon;
McCausland Hospital in Terrace Bay and servicing Schreiber;
Aguasabon Medical Clinic in Terrace Bay;
J. E. Stokes Medical Clinic in Schreiber;
Manitouwadge General Hospital in Manitouwadge; and,
White River Medical Centre in White River.
Health services in the First Nations are provided through federally-funded, community-based
programs that are operated through local health centres. The centers provide various services
that are described in detail on each community’s website. Health services offered through
PMFN are administered through the local health center. These services include: community
health representative for diabetic education and foot therapy; family support worker; National
Native Alcohol and Drug Abuse Program (NNADAP) worker; mental health and addiction
counsellor; and, a youth worker.
The community of PRFN also has a variety of programs offered under the management
mandate of their health program. The main services offered to community members include:
community nursing program; drug and alcohol prevention program; Non-Insured Health
Benefits (NIHB) processing program; home and community care program; medical
transportation program and aboriginal head start programming.
25
The community of PPFN also have access to a health centre program. The services and
programs offered focus mainly on health promotion and prevention strategies, with access to
minor treatment.
2.2.1.6. Emergency Services
Emergency services in the area are provided by the Ontario Provincial Police (OPP) for policing
services, local fire departments for fire protection services and Superior North Emergency
Medical Services (EMS) through local dispatch offices for ambulance services, which are all
accessible on the 911 network.
Emergency services in PRFN and PMFN are provided by the Anishinabek Police Service (APS) for
policing services, while PPFN is serviced by the OPP Nipigon Detachment – Schreiber Satellite
Detachment. Each community operates a fire protection services and Superior North EMS
provides ambulance services, which are all accessible on the 911 network.
2.2.1.7. Crime and Justice
The Marathon Detachment of OPP is responsible for policing Marathon and Manitouwadge.
From 2007-2010, reported violent crimes in Marathon and Manitouwadge have increased
slightly. The clearance rate for these violent crimes is 98 percent, which is slightly higher than
the national average. There has been a 20 percent increase in property-related crimes in 2009;
however, the clearance rate by charged incident improved by 14 percent above 2008.
The OPP addresses the rise in incidents through the better collection of information. Results
Driven Policing (RDP) and media campaigns for victims and witnesses to report incidents to
police have been successful.
Motor vehicle collisions (MVCs) have decreased by approximately 16 percent over 2008 with an
overall reduction in MVCs for Canada’s Road Safety Vision 2010 commitments at 19 percent.
Drug-related occurrences and report of local drug use have decreased by 20 percent but are
still a major concern within the two communities served by the Marathon Detachment.
Throughout 2010, the Marathon Detachment plans to further improve reductions by
proactively addressing local drug issues through targeted investigation strategies and public
education.
The Nipigon Detachment of the OPP is responsible for policing Schreiber and Terrace Bay. For
the three-year period 2007-2009, the number of violent crimes in the Nipigon/Schreiber area
has decreased by 22 percent and the clearance rates for these crimes remains well above the
national clearance rate. The number of property crimes has remained constant. The clearance
rates for these crimes also remain above the national clearance rate. The overall calls for
service have remained relatively constant from 2007 to 2009.
26
The number of MVCs continues to be of concern within the detachment area. Officers with
specialized training in the area of traffic enforcement and commercial vehicle inspection
continue to deal with these traffic issues and public safety matters relating to traffic. The
addition of the Highway Safety Division (HSD) to the Northwest Region (NWR) is intended to
improve visibility and enforcement initiatives in the Nipigon/Schreiber area. A concerted effort
will again be placed on aggressive driving, stunt driving, seatbelt compliance and Reduce
Impaired Driving Everywhere (RIDE) programs throughout the year.
The Superior East Detachment of the OPP is responsible for policing White River. Total calls for
service (all types) continued to show an increase, until these past two years during which time
they have decreased slightly. Whether the decrease in calls for service is a direct result of a
drop in population and/or tougher economic times has yet to be determined.
There are no data available concerning crime and justice for PRFN, PMFN and PPFN; however,
provincial information can be found in the Nishnawbe-Aski Police Service 2010-2011 Annual
Report. The NAPS provides police coverage for a wide range of First Nations in Northern
Ontario. The top five incidents with the highest observed increase or decrease in service call
activity within in the communities, as compared to the 2009-2010 annual report, are found in
Table 2.2.7. Overall, the police service experienced a 6.2 percent increase in calls from the
previous fiscal year.
Table 2.2.7. The Top Five Increases and Decreases of Service Calls
Further information provided by NAPS includes drug investigations. In 2010, the highest
offense was non-specified drug trafficking; this trend is congruent with previous fiscal years.
Drug investigations from 2010-2011 decreased from 2009-2010; however, oxycodone
investigations still remains high at nearly 90 investigations. These investigations have seized
over $5,000,000 in drugs ranging from marijuana, marijuana plants, cocaine and oxycodone
tablets.
During the 2010-2011 year, guns and gang unit investigations showed increases in several
areas. The highest areas of incident were: firearms seized; prohibited devices seized; other
weapons seized; compliance check of known gang members; involved arrests; and, charges
resulting from joint investigations.
Occurance Type % (-) Decrease Occurance Type % (+) Increase
Robberies 54% Dangerous Operation 141%
By-law 34% Domestics 54%
Prov. Statues- Other 30% Arson 52%
Bail Violations 27% Mental Health 49%
Youth Complaints 25% Frauds 46%
27
2.2.1.8. Poverty and Social Issues
Northwestern Ontario communities rely largely on natural resource-based sectors for economic
and employment opportunities. The effects of the global economic downturn are apparent in
Northwestern Ontario. People of Northwestern Ontario have experienced the worst economic
conditions in the history of the forest sector, resulting in the substantial decline of the forest
products manufacturing sectors.
Numerous forest resource processing facilities have curtailed or ceased operations. These
indefinite and permanent closures have drastically reduced the business and employment
opportunities available to young people, especially those individuals interested in staying in
their home communities. As a result of the current and persisting recession, youth
outmigration is a reality for virtually every community in Northwestern Ontario.
Housing is a fundamental indicator of the quality of life, level of poverty and severity of social
issues in a given area. In addition to sufficient food and clothing, people expect to have a
decent dwelling that is in good condition and large enough to accommodate the household
members. Some households face problems affording good housing and find themselves forced
to choose between appropriate shelter and other life necessities.
The term acceptable housing refers to housing that is adequate in condition, suitable in size and
affordable:
Adequate housing does not require any major repairs, according to residents;
Suitable housing has enough bedrooms for the size and make-up of resident households,
according to National Occupancy Standards (NOS) requirements. Enough bedrooms based
on NOS requirements means one bedroom for each cohabitating adult couple; unattached
household member 18 years of age and over; same-sex pair of children under age 18; and
additional boy or girl in the family, unless there are two opposite sex children under 5 years
of age, in which case they are expected to share a room. A household of one individual can
occupy a bachelor unit (i.e., a unit with no bedroom); and,
Affordable housing costs less than 30 percent of before-tax household income. For renters,
shelter costs include rent and payments for electricity, fuel, water and other municipal
services. For owners, shelter costs include mortgage payments (principal and interest),
property taxes and any condominium fees, along with payments for electricity, fuel, water
and other municipal services. A household paying more than 30 percent of their before-tax
income on housing is considered to have housing affordability problems.
The following analysis reviews the housing needs of local residents in the area. The most
recent housing cost data available were analyzed to determine affordable housing trends in the
area. The percent change in median income, rental payments and mortgage payments for
28
municipalities within the area were reviewed over a 5-year period from the 2001 to 2006
censuses. The results of the comparison are displayed in Table 2.2.8.
Table 2.2.8. Percent change in median income, rental payments and mortgage payments between 2001 and 2006 for Marathon, Terrace Bay, Manitouwadge, Schreiber and White River.
Ontario has two social assistance programs to help residents of Ontario who are in financial
need. The Ontario Disability Support Program (ODSP), which helps people with disabilities, has
two components: financial; and, employment support. The second program is Ontario Works
(OW) program, which helps people who are in temporary financial need. Ontario Works (OW)
benefits are for people who need financial assistance because they cannot find work or are
temporarily unemployed. Similar to the ODSP program, OW has a financial component and an
employment assistance component. Table 2.2.9 details the Ontario Works caseload
composition of people/families that are in temporary financial need in the Region.
Source: Statistics Canada, 2001 and 2006 Census Community Profiles for Schreiber
19%
-5%
$ 682 $ 664 -3% $ 766 $ 600 -22% $ 945 $ 516 -45% $ 684 $ 634 -7% $ 533 $ 633
-4%
$ 544 $ 501 -8% $ 447 $ 550
$57,497 $42,513 -26% $59,803 $57,297 $80,240 3% $70,921 $78,894 11%
$ 526 18% $ 493 $ 530 8% $ 455 $ 416 -9% $ 582
$70,870 $82,991 17% $77,754
Manitouwadge
2001 2006Percent
Change
White River
Percent
Change2006 2001 2006
Schreiber
2001 2006Percent
Change
Percent
Change
Terrace Bay
2001 2006Percent
Change
Median household
income ($) - All
households
Median monthly
payments for rented
dwellings
2001
Median monthly
payments for owner-
occupied dwellings
Marathon
29
Table 2.2.9. Number of Ontario Works Cases in 2011
Source: Thunder Bay District Social Services Administration Board (Schreiber, Manitouwadge); Algoma District Services Administration Board
(White River); Personal Communication (Pic Mobert First Nation); data for Pic River First Nation data is unavailable since Social Assistance
Administrator was away for the month; and, Pays Plat First Nation data is unavailable.
The Marathon area suffered numerous losses in the local forest industry through the
bankruptcy of MPI and Buchanan Forest Products Limited (BFPL), which affected employees,
subcontractors and suppliers. Marathon and Manitouwadge have an average of 170 Ontario
Works caseloads per year for all categories (family, single and single with dependant). Both
Marathon and Manitouwadge have a food bank and not for profit housing; however, usage
data are unavailable at this time.
The Terrace Bay area has also suffered economic hardships with the local forest industry.
Through the bankruptcy of BFPL and prolonged Companies Creditors Arrangement Act (CCAA)
protection of Terrace Bay Pulp Inc. (TBPI), many employees, subcontractors and suppliers were
impacted. Uncertainty continues in the forestry sector as the economy in Northwestern
Ontario begins to recover, Terrace Bay was one of the only communities in the region with an
operational forest resource processing facility; until January 2012 when the facility once again
petitioned the court for protection from its creditors through CCAA and was put up for sale.
Terrace Bay and Schreiber have an average of 70 Ontario Works caseloads per year for all
categories (family, single and single with dependant). Terrace Bay has a Transient Assistance
Program and an Emergency Assistance Program that is designed to assist individuals in a crisis
or emergency situations. Terrace Bay administers the Provincial Rent Bank Program to help
individuals pay their rent. Terrace Bay also administers the Residential Rehabilitation
Assistance Program (RRAP) and has a rental geared to income program. Although Terrace Bay
has a Food Bank, usage data are unavailable at this time.
In White River, median household incomes are below the provincial average while family
incomes are higher. White River has an average of Ontario Works caseloads of 9 per year for all
categories (family, single and single with dependant) and a Regional Employment Help Centre.
At the time of writing this report, there was no poverty and social issues information readily
available for PRFN. Stillwater Canada Inc. will continue to dialogue with the First Nation.
Community OW Cases in 2011
Marathon & Manitouwadge 107
Terrace Bay & Schreiber 70
White River 9
Pic River First Nation n/a
Pic Mobert First Nation 86
Pays Plat First Nation n/a
30
PMFN has an average of 86 Ontario Works caseloads per year for all categories (family, single
and single with dependant). PMFN has been under a boil water advisory for the past 8 years
and, for the past 4 years, bottled water has been issued to community members. In 2011,
AANDC has initiated the supply of water to babies and Elders in the community, which only
constitutes 10 homes on the Reserve. The remainder of the community are instructed to
continue boiling their water.
The community of PPFN has few basic social services programs and supports; however, this
community and PRFN administer the Ontario Works Program for their communities. Average
caseload data are unavailable at this time.
The Ministry of the Attorney General of Canada published a report called A Profile of Aboriginal
Peoples in Ontario. The report details many social problems that are being experienced by the
First Nations of Ontario. Generally, First Nations peoples obtain less education when compared
to non-First Nations individuals, with the largest difference being noted in university level
education. Based on the 2001 Statistics Canada Census, the percentage of the Ontario
populations over 15 years and older that have a university degree is 5.5 percent for First
Nations in comparison to 17.5 percent for non-First Nations.
In further detail, the profile report also delineated the employment percentage rate between
First Nations and non-First Nations peoples of Ontario that were 15 years and older.
Unemployment and employment rates for First Nations were 14.7 percent and 55.1 percent,
respectively. In comparison, non-First Nations peoples experienced respective unemployment
and employment rates of 8 percent and 63.3 percent.
Income rates also differ greatly between First Nations populations and non-First Nations. The
2001 census indicated that First Nations are receiving an average income of $21, 822, while
non-First Nation peoples receive $33,026. Lastly, the report described the Ontario prison
population as it relates to First Nations peoples. In 2001, 9 percent of prison inmates were First
Nation.
An overall description of First Nations health was found in a report funded in 2005 by the
Ontario Ministry of Health and Long Term Care entitled Health Status Report of Aboriginal
People in Ontario. The report had several key findings that are important when considering the
general picture of First Nations health in Ontario:
The 1990 First Nation birth rate is 23.0 births per 1,000 women of child-bearing age,
compared to the Canadian rate of 11.1 births per 1,000 women of child-bearing age.
In 1997, 79 percent of males and 72 percent of females aged 20 and over in the First
Nations population were smokers, a rate twice as high as the general Ontario population.
31
63 percent of First Nation individuals between ages 18-34 were considered overweight or
obese, compared to 39 percent of Canadians aged 18-34.
The life expectancy at birth for First Nations in 2000 was estimated to be 68.9 years for men
and 78.6 years for females.
Mortality rates of First Nations males in Ontario aged 35-49 were nearly four times those of
non-First Nations males with motor vehicle accident among the leading cause of death in all
age groups, except those over the age of 65.
Rates of mumps, pertussis and rubella were three times higher among First Nations than
the overall Canadian rate.
The suicide rate among First Nations peoples of all ages is three to four times greater than
among the non-First Nations population. Studies have also shown that 75 percent of First
Nations women have been victims of family violence. Common mental disorders of First
Nations people over the age of 15 years are depression, anxiety and substance abuse.
2.2.1.9. Community Services, Programs and Facilities
The area offers an array of community and social services programs and supports. The
programs and supports range from services for children, families, adults, women and seniors
and are funded through various levels of government (municipal, provincial and federal).
Information concerning these programs and supports are available on each municipality’s
website. The municipalities also offer its residents many social, specialty, hobby, sports and
professional service clubs.
PRFN provides a number of social and cultural service programs and supports. The programs
and supports range from those that are suited to children, families, adults, women and seniors.
They encompass health care, recreation, employment and spiritual services.
There are few services, programs and facilities available to the members of PMFN. An events
calendar is maintained by the Band Office and promotes a variety of recreational, spiritual and
health-related activities for Band Members of all ages.
Cultural programing around First Nation communities includes annual Powwows. A modern
Powwow is a specific type of event where both First Nations and non-First Nations people meet
to dance, sing, socialize and honour the First Nations culture. There is generally a dancing
competition, often with prize money awarded. Powwows vary in length from a one day session
of 5 to 6 hours to three days. Major Powwows or Powwows called for a special occasion can be
up to one week long. Each First Nation has an annual Powwow:
PPFN Powwow is held the 2nd last week in July;
PRFN Powwow July 12 to the 14th; and
32
PMFN Powwow is August 1st.
2.2.1.10. Transit, Transportation and Transport
With the exception of Manitouwadge who is located on highway 614, all of the municipalities
are located on TransCanada Highway 17; the primary land corridor linking Canada from east to
west. United States border crossings at Sault Ste. Marie, Ontario (east) and Pigeon River,
Ontario (west) are four hours away from the project site. Each municipality maintains paved
and gravel roads within their municipal boundaries. No public transit is available but private
companies provide local taxi service. Greyhound bus travel is available to all the municipalities,
in addition to the First Nations of Pays Plat and Pic Mobert South.
Again, with the exception of Manitouwadge who is serviced by Canadian National (CN) railway,
all of the municipalities are serviced by the Canadian Pacific Railway (CPR) and there is
passenger rail service available from White River to Sudbury. The divisional office for CPR is
located in Schreiber and is one of the town’s largest employers.
Marathon, Manitouwadge and White River operate local airports. There is currently no regular
air service but landing and fuel services are available. The airports can also provide for remote
access flights as well. International travel can be accommodated at the Thunder Bay
International Airport and various Canadian flights can be scheduled at the Wawa and Sault Ste.
Marie airports.
Marathon is located on Peninsula Harbour, a deep water harbour on Lake Superior. Great
Lakes and ocean-going vessels have the capacity to dock at the harbour, delivering or picking up
cargo. In Terrace Bay, the local pulp mill is currently constructing a deep water port in Hydro
Bay (large bay between Terrace Bay and Schreiber) and may be open to shipping partnerships.
All 3 First Nations are located along or in close proximity to TransCanada Highway 17, the
primary land corridor linking Canada from east to west. United States border crossings at Sault
Ste. Marie (east) and Pigeon River (west) are approximately four away.
2.2.1.11. Utilities
The Northshore of Lake Superior does not have access to the natural gas line and, as a result,
the major energy source is electricity. Residents utilize electricity, wood or heating oil for
residential heating purposes. Electricity is provided to the area by Hydro One.
The first 1,000 kilowatt hours (kWh) of electricity used is priced at 5.6 cents per kWh for
residential customers. Each kWh used above 1,000 kWh per month is priced at 6.5 cents per
kWh. For small business customers, the first 750 kWh of electricity is priced at 5.6 cents per
kWh. Each kWh utilized above 750 kWh per month is priced at 6.5 cents per kWh. Every 6
33
months, the price of electricity may change based on the Ontario Energy Board’s forecast for
electricity prices. Industrial and large energy users that use more than 250,000 kWh of
electricity a year pay an hourly wholesale price.
The municipalities within the Project area all have fresh potable water and/or water treatment
facilities, septic and sewage treatment facilities and telecommunication services. The Town of
Marathon utilizes raw ground water wells for water distribution. Marathon has a waste water
treatment plant to filter waste water and sewage. The community of Terrace Bay has a water
treatment plant with its main source of water being from Lake Superior. The Manitouwadge
water system consists of five ground water wells, a treatment plant and a reservoir. The waste
water collection system is composed of 19 kilometers of gravity sewer mains and aerated
sewage lagoons. In Schreiber, there is a full treatment water facility and a modern sanitary and
sewer system. Lastly, White River has a treatment facility built in 2006 with the water source
coming from Tukanee Lake. The sewage system consists of four pumping stations and a waste
stabilization pond.
Each community has access to the services of Bell Canada for internet, landline phone and
television. Mobility services are offered by TbayTel.
PRFN has a long history with waterpower applications. The First Nation currently obtains its
energy from three hydroelectric dam facilities. Each site is located along the Pic River and has
increased self-reliance within the First Nation. These facilities also provide a means of
employment to Band Members.
Electricity is available to the community of PMFN who also utilize fuel oil and wood for heating.
A hydroelectric generating project is currently in progress. In March 2005, PMFN entered into a
joint venture agreement with Regional Power Inc. to facilitate the development of two
waterpower sites on the White River. The joint venture is known as the Pic Mobert Hydro
Power Joint Venture (PMHPJV). The community of PMFN has access to TbayTel for mobility
services and Bell Canada for internet, landline and television services.
Electricity is available to the community of PPFN; however, they rely heavily on fuel oil and
wood for heating. To support PPFN utility usage, the First Nation has a 10,000 cubic metre/yr
wood allocation to support a firewood and delivery business in the community.
2.2.1.12. Community Well-Being and Quality of Life
The Community Well-Being (CWB) Index is a means of measuring socioeconomic well-being in
First Nations, Inuit and other Canadian communities. CWB Index scores are derived from
Statistics Canada census data. The CWB Index was developed by AANDC primarily to help
measure the quality of life in Aboriginal communities across Canada. AANDC also determines
34
CWB scores for non-Aboriginal communities across Canada to provide a relative measure on
which to track the progress of Aboriginal communities. As such, the CWB Index is available for
a number of communities, Aboriginal and non-Aboriginal, including the municipalities in the
Project area.
The CWB Index is a method of assessing socioeconomic well-being in Aboriginal communities
and facilitates comparisons to other Canadian communities. It combines census data on into a
well-being score.
A community's score is a single number that can range from a low of 0 to a high of 100. It is
composed of data on income, education, housing conditions and labour force activity. The
methodology for the CWB index is provided below:
The income component of the CWB Index is defined in terms of total income per capita. The
community's income score can be calculated in three steps:
1. To calculate the per capita income every dollar of income received by community members
is divided by the total population of the community.
2. Per capita income is then transformed into its logarithm. This is done to account for “the
diminishing marginal utility of income.” According to this principle, those who occupy lower
income strata will benefit more from additional income than those at higher income levels.
3. The logarithm of per capita income is converted to a scale of 0 -100 like the other
components of the index. To do this, a “theoretical range” of total income was established
to approximate the 0 - 100 range within which the other components naturally fall. A range
of $2,000 to $40,000 dollars was used because it coincides with the approximate lowest and
highest incomes per capita found in Canadian communities.
These three steps are summarized by the formula below:
For instance, the calculation below illustrates how an income score is calculated for a
community with $10,000 per capita income:
35
Income Score = 53.79
The education component is comprised of the following two variables:
1. "High school plus": the proportion of a community's population, 20 years and over, that has
obtained at least a high school certificate.
2. "University": the proportion of a community's population, 25 years and over, that has
obtained a university degree at the bachelor's level or higher.
The housing component comprises indicators of housing quantity and quality. Housing quantity
is defined as the proportion of the population living in dwellings that contain no more than one
person per room. The ratio of persons to rooms is calculated by dividing the number of
household members by the number of rooms in the dwelling they occupy. Housing quality is
defined as the proportion of the population living in dwellings that are not in need of major
repairs.
The labour force component is comprised of the following two variables:
1. Labour force participation: the proportion of the population, aged 20-65, that was involved
in the labour force in the week prior to census day.
2. Employment: the percentage of labour force participants, aged 20-65, that was employed
in the week prior to census day.
Well-being means different things to different people. For some, well-being includes health,
wealth and happiness. For many Aboriginal communities, well-being includes culture and
language. Some of these indicators are easier to measure than others and because the census
contains only a limited number of variables related to well-being, the CWB cannot capture all
aspects of well-being. Nevertheless, it is a useful tool to assess community well-being.
36
2006 CWB scores for the municipalities and First Nations in the Project area, as well as other
Aboriginal and non-Aboriginal communities of local and regional relevance to the Project are
summarized in Table 2.2.10.
Table 2.2.10. Community Well-Being (CWB) scores for relevant communities.
2.2.2. Economic Factors
Mining (including mineral exploration and development) has been a part of the history of the
area throughout the post-World War II period. At present, outside of exploration activities in
the area the only mines in production are the Hemlo Gold Camp, which comprises the Williams
(open pit and underground facilities) and David Bell (open pit) Barrick operations. The Hemlo
Gold Camp is within communting distance to several area communities, including Marathon,
and has a current workforce of about 650. The camp is slated for closure in, or about 2015.
There are several closed mines in the area including:
Geco Mine (Manitouwadge), a copper-zinc mine that operated between 1957 and 1995;
Willroy Mine (Manitouwadge), a copper-zinc mine that operated between 1955 and 1977;
Winston Lake Mine (Schreiber), a zinc mine that operated between 1988 and 1998; and
Zenmac/Zenith Mine (Schreiber), a zinc mine that operated between 1898-1902 and 1966-
1970.
Forestry, and in particular pulp production, has been an integral part of the local economy for
several decades. The pulp mill operated in Mararthon more or less continually between 1946
and 2009 and Terrace Bay was a planned community built in the early 1940s to support the
Community Income Score Education Score Housing Score Labour Force Score CWB
Pic Mobert FN 53
Pic River FN 71 48 84 81 71
Pays Plat FN 62
Thunder Bay 87 58 96 85 82
Sault Ste. Matie 87 57 96 84 81
Shuniah 93 63 97 82 84
Dorion 89 52 91 80 78
Red Rock 90 56 93 78 79
Nipigon 85 47 96 83 78
Schreiber 88 50 93 77 77
Terrace Bay 97 57 99 76 82
Marathon 95 57 96 88 84
Manitouwadge 93 55 95 85 82
White River 88 48 92 91 80
Michipicoten 88 56 93 85 81
37
pulp mill. In 2009, the MPI mill closed and subsequently went into Recievership. It is unclear as
to whether the site will be operated in the future.
The pulp mill in Terrace Bay has experienced 2 prolonged shutdowns and Companies’ Creditor
Arranagement Act (CCAA) protection processes. Intermittent periods of operation have
occurred when viable under economic conditions; however, in October 2011, the mill
experienced a boiler explosion and announced a shutdown for repairs that was later extended
due to poor market conditons.
In January 2012, the company announced that the TBPI operation would be put up for sale and
it was placed under protection from its creditors on January 25th, 2012. The mill has been idle
while potential buyers conduct the due diligence activities for potentially acquiring the mill.
Under the court approved sales process, a new owner will be put in place by April 16th, 2012.
PRFN is active in economic and workforce development with interests in nearby, run of the river
hydroelectric generating stations, including:
Wawatay Generating Station, commissioned in 1991 with an installed capacity of 13.5
megawatts (MW);
Twin Falls Generating Station, commissioned in 2001 with an installed capacity of 5 MW;
and,
Umbata Falls Generating Station, commissioned in 2008 with an installed capacity of 23
MW.
The First Nation owns and operates Pic River Development Corporation (PRDC), an economic
development corporation with several different departments, including forestry and fire
fighting activities. PRFN also owns and operates cable television and high-speed internet
companies. Furthermore, the First Nation is pursuing a variety of wind and hydroelectric
projects. These projects include: Superior Shores Wind Farm; Coldwell Wind Farm; and the
Kagiano River hydroelectric project. Lastly, the PRFN and PPFN communities have partnered
with Brookfield to develop a 10MW hydroelectric facility on the Agusabon River.
PPFN is actively involved in economic development on their traditional lands. The First Nation
recently completed negotiations to expand their reserve area. In combination with a larger
land area, the First Nation is looking to develop a backcountry tourism operation on the Gravel
River Conversation Reserve. In addition, the First Nation was recently awarded a fibre
allocation of 10,000 cubic metres per year of white birch to support a firewood processing and
delivery business through the Ontario Provincial Wood Supply Competitive Process.
38
The Baseline Socioeconomic Report was primarily developed utilizing the data contained within
the 2006 Canada Census Community Profiles. The Canadian government is in the process of
updating this information through the 2011 Canada Census. Unfortunately, the data collected
through the 2011 Census will not be available until 2012 with the following release schedule:
Population and dwelling counts – February 8, 2012;
Age and sex – May 29, 2012;
Families, households and marital status – September 19, 2012;
Structural type of dwelling and collectives – September 19, 2012; and,
Language – October 24, 2012.
The development of the Socioeconomic Baseline Report and the Socioeconomic Impacts and
Benefits Study could not wait for this data. In order to create an accurate labour market profile,
SCI purchased data from Manifold Data Mining Inc. (Manifold). Manifold has been providing
current year census updates since 2001.
Statistics Canada conducts a labour force survey every month. This survey and the 2006 Census
serve as the foundation for annual updates of labour force activities. Furthermore, Manifold
has established associations between labour force statistics in the Census and business
establishments, immigration statistics and settlement patterns, as well as macroeconomic data.
This enables the combination of the most recent employment statistics, wages, income and
inflation data with the demographic information and business establishment data by region and
industry, as well as at the neighbourhood level to estimate the current labour force and
occupational activities and income levels.
Unfortunately, the Census data for the local First Nations had gaps with respect to housing,
income and labour force information. As a result of the incomplete First Nations census data, it
was not possible to purchase updated data from Manifold.
2.2.2.1. Employment and Labour Force Participation Rates
The data purchased from Manifold provided forecasted labour market information for 2011.
Labour force estimates for the area surrounding the Project indicate unemployment rates
ranging from 7.47 in Marathon to 27.15 percent in Terrace Bay. Figure 2.2.5 displays
employment and unemployment data for the Project area.
39
Figure 2.2.5. Employment and unemployment rate for communities in proximity to the Project 2011(Manifold).
Although these rates are slightly higher than those reported in the 2006 Census, the trends
have remained similar. Terrace Bay and Schreiber have the highest unemployment rates with
Marathon, Manitouwadge and White River having significantly lower rates. The unemployment
rates in Marathon, Manitouwadge and White River continue to hover between 7 and 8 percent,
which is consistent with the Ontario unemployment rate of 8.7 percent and national
unemployment rate of 7.6 percent.
The 2006 census data was utilized to determine the total labour force in the local First Nations,
including participation rates, which are presented in Table 2.2.11. Participation rates range
from 56 percent in Pic Mobert South to 64 percent in PPFN. Unemployment rate range from 13
percent in PRFN to 53 percent in PPFN (figure 2.2.6).
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
Pe
rce
nta
ge
Employment and Unemployment Rates
Employment Rate
Unemployment Rate
40
Table 2.2.11. Labour Market and Income Information From 2001 and 2006 Community Profiles
Figure 2.2.6. Employment and unemployment rate for First Nation communities in proximity to the Project in 2011 (Manifold)
The Manifold information also provided data concerning labour force industries and
occupations in the Project area. The 2011 data provided by Manifold for industries
participation is reported according to the 2007 North American Industry Classification System,
which constitutes different categories than those utilize in the 2006 Census. Industry
participation data for the communities within the Project are provided in Figures 2.2.7 through
2.2.11.
Pic River FN Pic Mobert N Pic Mobert S Pays Plat FN
57%
43%
25%
55%
13%
2006
56%
2006
64%Labour force
participation rate
Employment rate
Unemployment rate
63%
2006 2006
36%
53%40%
33%
Source: Statistics Canada, 2001 and 2006 Census Community Profiles for Marathon, Terrace Bay,
Manitouwadge, Schreiber and White River
0%
10%
20%
30%
40%
50%
60%
Pic River FN Pic Mobert N Pic Mobert S Pays Plat FN
Pe
rce
nta
ge
Employment and Unemployment Rates
Unemployment
Employment
41
Figure 2.2.7. Industry participation information for Marathon in 2011 (Manifold)
Figure 2.2.8. Industry participation information for Terrace Bay in 2011 (Manifold)
0
100
200
300
400
500
600
Nu
mb
er
of
Pe
op
le
Industries in Marathon
0
50
100
150
200
250
300
Nu
mb
er
of
Pe
op
le
Industries in Terrace Bay
42
Figure 2.2.9. Industry participation information for Manitouwadge in 2011
(Manifold)
Figure 2.2.10. Industry participation information for Schreiber in 2011 (Manifold)
0
50
100
150
200
250
300
350
Nu
mb
er
of
Pe
op
le
Industries in Manitouwadge
0
10
20
30
40
50
60
Nu
mb
er
of
Pe
op
le
Industries in Schreiber
43
Figure 2.2.11. Industry participation information for White River in 2011 (Manifold)
Although there are different categories, trends are apparent between the 2006 Census and the
2011 data. The area continues to be dominated by labour force participation in the mining, oil
and gas extraction; manufacturing; retail trade; transportation and warehousing; agriculture,
forestry, fishing and hunting; and, educational services industries.
The industry participation rates for the First Nations are displayed in Figure 2.2.12. Industry
participation among the First Nations is concentrated in the other services, agriculture and
resource-based services, health care and social services and educational services.
Figure 2.2.12. Industry participation for Pic Mobert North, Pic Mobert South, Pic
River First Nation and Pays Plat First Nation (2006 Census)
020406080
100120140160180200
Nu
mb
er
of
Pe
op
le
Industries in White River
-
5
10
15
20
25
30
35
40
45
50
Nu
mb
er
of
Ind
ivid
ual
s
Industry Participation
Pic Mobert N
Pic Mobert S
Pic River
Pays Plat
44
The occupations of the labour force in the area serve to support these industries. Figures
2.2.13 through 2.2.7 provide occupation information for the same municipalities. Although
each municipality has different percentages of occupations, there are similarities between
them. Occupations continue to be concentrated in business, finance and administration;
occupations unique to primary industry; trades, transport and equipment operators; sales and
service; and, social science, education, government service and religion.
Figure 2.2.13. Occupations information for Marathon in 2011 (2006 Census)
Figure 2.2.14. Occupations information for Terrace Bay in 2011 (2006 Census)
MANAGEMENT5%
BUSINESS, FINANCE AND
ADMINISTRATION
12%
NATURAL AND APPLIED SCIENCES
AND RELATED
4%
HEALTH5%
SOCIAL SCIENCE, EDUCATION,
GOVERNMENT
SERVICE AND RELIGION
10%
ART, CULTURE, RECREATION AND
SPORT
2%
SALES AND SERVICE
27%
TRADES, TRANSPORT AND
EQUIPMENT
OPERATORS17%
OCCUPATIONS UNIQUE TO
PRIMARY
INDUSTRY13%
OCCUPATIONS UNIQUE TO
PROCESSING,
MANUFACTURING AND UTILITIES
5%
Marathon Occupations
MANAGEMENT7%
BUSINESS, FINANCE AND
ADMINISTRATION
11%
NATURAL AND APPLIED SCIENCES
AND RELATED
4%HEALTH
3%
SOCIAL SCIENCE, EDUCATION,
GOVERNMENT
SERVICE AND RELIGION
10%
ART, CULTURE, RECREATION AND
SPORT
1%
SALES AND SERVICE
26%
TRADES, TRANSPORT AND
EQUIPMENT
OPERATORS28%
OCCUPATIONS UNIQUE TO
PRIMARY
INDUSTRY4%
OCCUPATIONS UNIQUE TO
PROCESSING,
MANUFACTURING AND UTILITIES
6%
Terrace Bay Occupations
45
Figure 2.2.15. Occupations information for Manitouwadge in 2011 (2006 Census)
Figure 2.2.16. Occupations information for Schreiber in 2011 (2006 Census)
MANAGEMENT5%
BUSINESS, FINANCE AND
ADMINISTRATION
11%
NATURAL AND APPLIED SCIENCES
AND RELATED
2%HEALTH4%
SOCIAL SCIENCE, EDUCATION,
GOVERNMENT
SERVICE AND RELIGION
11%
ART, CULTURE, RECREATION AND SPORT
1%
SALES AND SERVICE
25%
TRADES, TRANSPORT AND
EQUIPMENT
OPERATORS21%
OCCUPATIONS UNIQUE TO
PRIMARY
INDUSTRY17%
OCCUPATIONS UNIQUE TO
PROCESSING,
MANUFACTURING AND UTILITIES
3%
Manitouwadge Occupations
MANAGEMENT2%
BUSINESS, FINANCE AND
ADMINISTRATION
19%
NATURAL AND APPLIED SCIENCES
AND RELATED
3%HEALTH
2%
SOCIAL SCIENCE, EDUCATION,
GOVERNMENT
SERVICE AND RELIGION
13%
ART, CULTURE, RECREATION AND
SPORT
0%
SALES AND SERVICE
21%
TRADES, TRANSPORT AND
EQUIPMENT
OPERATORS33%
OCCUPATIONS UNIQUE TO
PRIMARY
INDUSTRY0%
OCCUPATIONS UNIQUE TO
PROCESSING,
MANUFACTURING AND UTILITIES
7%
Schreiber Occupations
46
Figure 2.2.17. Occupations information for White River in 2011 (2006 Census)
The existing labour force characterized by occupation for the First Nations is displayed in
Figure 2.2.18.
Figure 2.2.18. Labour force characterized by occupation for Pic Mobert North, Pic Mobert South, Pic River First Nation and Pays Plat First Nation. (2006 Census)
There are currently two large employers in the Project area, Barrick Gold Inc. and Terrace Bay
Pulp Inc. (TBPI). Barrick operates two gold mine properties in close proximity to the Project
area: David Bell Mine; and, Williams Mine.
The David Bell mine property is a gold mine currently under production located approximately
35 kilometres east of Marathon. Barrick filed closure plan amendments in December 2009 and
MANAGEMENT6%
BUSINESS, FINANCE AND
ADMINISTRATION
14%NATURAL AND
APPLIED SCIENCES AND
RELATED2%HEALTH
0%SOCIAL
SCIENCE, EDUCATION,
GOVERNMENT SERVICE AND
RELIGION9%
ART, CULTURE, RECREATION AND
SPORT
0%
SALES AND SERVICE
17%
TRADES, TRANSPORT AND
EQUIPMENT
OPERATORS27%
OCCUPATIONS UNIQUE TO
PRIMARY
INDUSTRY7%
OCCUPATIONS UNIQUE TO
PROCESSING,
MANUFACTURING AND UTILITIES
18%
White River Occupations
-5
10 15 20 25 30 35 40 45 50
Nu
mb
er
of
Ind
ivid
ual
s
Occupations of Workforce
Pic Mobert N
Pic Mobert S
Pic River
Pays Plat
47
April 2010 that extended the closure date of the mine to 2014 (MNDM, 2011). Barrick employs
approximately 160 trained and experienced individuals at their David Bell mine site.
The Williams Barrick mine is another gold mine currently under production located adjacent to
the David Bell Barrick mine site. Barrick filed a closure plan amendment in the third quarter of
2010 requesting a pit expansion to extend the mine life from 2015 to 2026 (MNDM, 2011).
Given the significant extension to the life of mining operations, these individuals are not
forecasted to be available for employment opportunities associated with the Project.
In conversations with the Chief Administrative Officer (CAO) of Marathon, SCI was informed
that Barrick forecasts no net increases or decreases in employment numbers. Consequently,
none of the current employees of the David Bell and Williams Barrick mines are forecasted to
be available to the Project.
The pulp mill in Terrace Bay recently exited CCAA protection on September 15, 2010 and
resumed operations on October 4, 2010. TBPI restarted its facility with a workforce of 300
individuals. In previous years, former owners employed over 450 individuals at the mill site. In
October 2011, the mill was closed for repairs due to an explosion. The closure was later
extended due to poor market conditions and in January 2012, the mill was put up for sale.
Interested parties are participating in the court approved purchasing process to take ownership
of the operation. A new owner should be put in place by the middle of April, 2012. There are
trained and experienced individuals that were formerly employed at the pulp mill that are now
available for the Project. These individuals are forecasted as possible employees for the
project.
Although not yet operational, there are other potential employers in the area that may draw
upon the available labour pool. Several investors have toured the former MPI mill site in
Marathon for different industrial applications within the forest and woods products sectors.
The municipality has been extremely active in investment attraction efforts to identify an
investor to reoccupy the site.
Unfortunately the MPI site has environmental liabilities associated with the site have prevented
several of these proposals from advancing. In addition, the available wood supply in the
Marathon area has been reallocated to other projects or facilities, including TBPI and a
proposed jet fuel manufacturing facility in White River.
2.2.2.2. Income Levels
The 2006 Census provides median versus average household income. The information
purchased from Manifold provided average 2011 household incomes. There is a difference
between median and average household income. The median income is that amount which
48
divides their income size distribution, ranked by size of income, into two halves. That is, the
incomes of the first half of households are below the median, while those of the second half are
above the median.
Although the average household incomes are significantly higher than the median incomes
stated in the 2006 Census, the trends remain similar. Marathon has the highest average
household income with $117,459 per year and Schreiber and White River have the lowest, with
$77,668 and $73,690, respectively. Figure 2.2.19 displays the average household income
information for the municipalities within the Project area.
Figure 2.2.19. Average household income information for the Marathon PGM-Cu Project area
The median household and family incomes for the First Nations in the Project area were not
available with the exception of PRFN with a median household income of $42,368 and median
family income of $49,408.
2.2.2.3. Cost of Living
A CPI measures changes through time in the price level of consumer goods and services
purchased by households. The CPI is defined by the United States Bureau of Labor Statistics as
a measure of the average change over time in the prices paid by urban consumers for a market
basket of consumer goods and services. In Canada, Statistics Canada tracks the retail price of a
representative shopping basket of about 600 goods and services from an average household’s
expenditure: food, housing, transportation, furniture, clothing; and, recreation to determine
CPI.
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Marathon Terrace Bay Manitouwadge Schreiber White River
An
nu
al I
nco
me
Average Household Income
49
Specific cost-of-living data are unavailable for individual communities throughout Northern
Ontario. Broad cost-of-living measures, such as the consumer price index (CPI), provide insight
into the change of commodity group pricing over time and are available on a regional and
provincial basis. The major commodity groups or “All-items CPI” consist of: food; shelter;
household operations; furnishings and equipment, clothing and footwear; transportation;
health and personal care; recreation; education and reading; and, alcoholic beverages and
tobacco products. Figure 2.2.20 illustrates the 60-month change in the CPI for Ontario and
Thunder Bay.
Figure 2.2.20. The 60 month change in the Consumer Price Index (CPI) for all commodity groups in Ontario and Thunder Bay. (Data from CANSIM Table 326-0020)
CPI values for the province and target region (as represented by Thunder Bay) are congruent on
month-to-month basis; however, on average, the CPI values are lower in Thunder Bay than
those for the province as a whole. The discrepancy reflects the offsetting of the slightly higher
costs for some consumer related goods in the region, such as fuel and food by the lower
housing costs.
2.2.2.4. Real Estate
The real estate listings available for the area are provided in Figure 2.2.4 as of February 3, 2012.
The majority of homes were found to have a price range of $0-$50,000 and $51,000-$75,000.
Manitouwadge has the most homes on the market with 29 being for sale. Marathon has 13
homes for sale, Terrace Bay has 8 homes for sale, White River has 3 homes for sale and
Schreiber has 0 homes on the market.
2.2.2.5. Economic Development
Each municipality has an economic development department, corporation or committee that is
responsible for the development and administration of a community economic development
50
strategy, including economic and community development initiatives or projects, business
retention and expansion and the promotion of industrial and commercial development.
The Town of Marathon has established the Marathon Economic Development Corporation
(MEDC). It is a registered, not-for-profit corporation with an independent Board of Directors
funded by the Town to promote economic development and diversification and to provide
support for enterprises, institutions and entrepreneurs engaged in the economic, cultural and
social development within Marathon. Their strategic plan identifies eight economic
cornerstones: mining; forestry; health; transportation, energy; education; retail; and,
government. Further economic development activity occurs through the Marathon Community
Development Assistance Fund (CDAF). The purpose of this fund is to provide financial
assistance to community development projects and events.
Terrace Bay was named the Entrepreneurial Community of the Year by the Northern Ontario
Business Awards for 2010-2011. A variety of major economic capital projects are currently
being completed in the municipality, including the $8 million McCausland Hospital Long-Term
Care project, the $3 million Downtown Revitalization project and the $2 million Cultural Centre
project. The service industry saw an investment of $2 million for the construction of a highway
commercial property that is now complete with full services available. The Township has also
reinvested a great deal in its water infrastructure in partnership with the federal and provincial
government for the recently completed $13 million Water Treatment Plant Construction and
Upgrades.
Upcoming projects in the Township of Manitouwadge include the rehabilitation of select
municipal and private buildings and land to give the architecture in the scenic lakeside
community a facelift. Upgrades are also scheduled to be made at the local airport to install
new infrastructure that is intended to attract new businesses. Improvements are being made
to the wastewater treatment facility to increase the capacity for commercial and industrial
growth. Manitouwadge is currently undergoing a study of its tourism sector to determine
potential opportunities.
The Township of Schreiber established a permanent economic development advisory
committee to stimulate business investment in the community. The mandate of the EDC is to
serve the Township of Schreiber as an advisory committee on initiating, planning, implementing
and evaluating matters pertaining to economic development within the community. The
Economic Development Committee (EDC) is comprised of Schreiber residents representing a
diversified cross-section of the community. There are 2 ex-officio council members on the EDC.
Recent economic development accomplishments in White River include a multi-million dollar
water treatment plant that provides clean drinking water to the community and a sawmill
51
purchased from Domtar that the community is working hard to reopen. The entire project
requires an investment of approximately $90 million. Ownership of the White River sawmill is a
four-way partnership between White River’s economic development department, the nearby
community of Pic Mobert First Nation, a Sudbury private investor and the new company
President, Jeff Butler, who also runs a forestry consulting business in southern Ontario. In the
neighbouring community of Wawa, the Township and Superior Aggregates Company are
moving forward in developing a Lake Superior commercial dock in Michipicoten Bay.
Further economic development projects in White River include a liquid biofuel plant. Rentech
Inc. proposes to manufacture jet fuel from underutilized forest resources in a plant to be built
in White River. The operation will directly employ approximately 100 individuals. The facility is
at the proposal phase of development and is years away from permitting, approval and
construction. The Rentech jet fuel plant will attract a different type of employee than the
Project and is proposed to reemploy a portion of the former workforce from the Domtar Inc.
sawmill in White River.
Two hydroelectric development projects are being undertaken by PRFN on the Pic River at
Manitou Falls and High Falls. These sites are collectively referred to as Pic River Hydro. The
proposed location is approximately 20 kilometres northwest of Manitouwadge and
approximately 70 kilometres and 80 kilometres upstream from Lake Superior. PRFN is
proposing to construct hydroelectric facilities at these site locations. The High Falls facility will
generate 3.2MW with the Manitou Falls facility generating 2.8MW. The project is subject to the
Class EA for Water Power Projects (OWA, 2008) under the Environmental Assessment Act. To
date, the Notice of Commencement, Public Consultations and wildlife and ecosystem
assessments are known to have occurred.
In addition to these hydroelectric projects, the PRFN 2008 strategic development 5-year plan
outlines several other economic development initiatives. Their key areas of focus include:
training; employment opportunities and support programs; business development (Band-
owned business and privately owned businesses); and, energy. The First Nation has taken on a
variety of energy development projects. PRFN has begun to develop two wind energy
initiatives. The first is Superior Shores Wind Farm and it is to be 100 percent owned by the First
Nation. They are also developing the Coldwell Wind Farm northwest of Marathon through a
partnership with Brookfield Renewable Power. The applicant of record status for two sites on
the Kagiano River, a tributary of the Pic River system 50 kilometres west of Manitouwadge,
have been awarded to the First Nation for development of a hydroelectric project.
Furthermore, the PRFN and PMFN communities have partnered with Brookfield to develop a
10MW hydroelectric facility on the Agusabon River.
52
The First Nation is also working to build economic opportunities in the mining sector. They are
hoping to secure contracts with the Williams Mine to help fulfill mine closure activities; success
is dependent on training and skill development opportunities.
The PMFN is also involved in hydroelectric generation. The lead representative for the First
Nation in the joint venture is Band Councilor Wayne Sabourin who has led the development of
the initiative since 2000. The project has been named the Gitchi Animki (Big Thunder)
Hydroelectric Project and consists of two developments located on the White River:
Gitchi Animki Bezhig, an approximate 8.9 MW site that will ultimately replace the Ontario
Ministry of Natural Resources (MNR) existing regulating dam that manages lake levels and
flood risks on White Lake;
Gitchi Animki Niizh, an approximate 10.0 MW site located approximately 16 km south of the
Gitchi Animki Bezhig; and,
21 kilometre transmission corridor is proposed.
The Gitchi Animki Hydroelectric Project will generate approximately 95 GWh of electricity
annually to support approximately 12,000 homes. The operation is expected to be functional
by 2013.
Further involvement in the utility sector is observed through PMFN’s endeavour to participate
in a joint venture with Great Lakes Transmission Inc., a subsidiary of Brookfield Asset
Management Inc. Five First Nations, including PMFN, have signed a letter of intent to build,
own and operate a transmission line between Nipigon and Wawa. The infrastructure will
improve the existing electrical transmission network. Construction is expected to take place in
2013 and will provide jobs and economic stability to the First Nation. Lastly, PMFN belongs to
the four-way partnership of the White River Forest Products sawmill that they hope will
revitalize the sawmill and local forest industry.
Pays Plat First Nation is engaged in a variety of economic development endeavours, in addition
to the aforementioned partnerships. For the community to be better positioned to take
advantage of economic opportunities, the First Nation entered negotiations with the Canadian
Government to expand their reserve area from 2.59 square kilometers to 16.5 square
kilometers. The added land base was selected based on economic and social criteria. Some
land will be used for housing, while other areas are well suited to future economic endeavours
linked with the Great Lakes Heritage Coast and the Lake Superior National Marine Conservation
Area initiatives.
An Agreement-in-Principal was signed in August 2009 with Parks Canada. The First Nation has
also contacted the Ontario Ministry of Natural Resources to identify their interest in economic
53
development opportunities at the Gravel River Conservation Reserve (GRCR). The area
encompasses their traditional land and a GRCR strategy was developed in 2005. Potential
backcountry tourism with its many lakes and rivers is a main focus of development during the
planning stages of this endeavour.
PPFN recently secured a long term fibre allocation of 10,000 cubic metres per year of white
birch for its firewood processing and delivery business. The company started this past winter
but has yet to reach full production. Permits and equipment are ready but the company is still
waiting for the wood. Interim manager and PPFN council member Frank Achneepineskum says
that the company needs to secure a harvester for the allocation. Closed mills have meant much
less demand for the wood, so they’ve had to wait for wood to be cut and delivered to them for
processing. Achneepineskum reports that they have brought three or four transport truckloads
so far from nearby Lake Nipigon and Kenogami Forests.
2.2.2.6. Government Funding
Municipalities collect the majority of operating finances through annual taxes levied on
property owners. These funds are applied towards the administration of all municipal
departments for the provision of many essential services: police and fire protection; road
maintenance; sewage and drainage; parks and recreation; economic development; and,
tourism. The total tax rate comprises municipal and education tax levy components.
It is important to note that the educational tax levy is not set by the municipality. The province
annually directs all the municipalities in Ontario what levy is to be applied to rate payers within
their jurisdiction. The following series of tables 2.2.11 – 2.2.15 outline the taxes paid by each
municipality for 2010.
Table 2.2.12 Tax levy for the Municipality of Marathon in 2010
Source: Marathon Municipal Office
Rate Payer Class 2010 Final Tax Rate
Residential 3.237339
Multi-Residential 3.536973
Commercial 5.175424
Commercial Vacant / Excess Land 3.622797
Industrial 8.171763
Industrial Vacant / Excess Land 5.311646
Large Industrial 8.171763
Large Industrial Vacant / Excess 5.311646
Shopping Center 5.175424
54
Table 2.2.13 Tax Levy for the Municipality of Terrace Bay in 2010
Source: Terrace Bay Municipal Office
Table 2.2.14 Tax Levy for the Municipality of Schreiber in 2010
Source: Schreiber Municipal Office
Table 2.2.15 Tax Levy for the Municipality of White River in 2010
Source: White River Municipal Office
Rate Payer Class 2010 General Municipal Tax
Residential/Farm - (all classes) 2.621845%
Residential PIL - General - NS 2.621845%
Multi-Residential (all classes) 6.135117%
Commercial (all classes) 4.745539%
Vacant Unit/Excess Land/Land 3.321877%
PIL - Full - No Support 4.745539%
PIL - General - No Support 4.745539%
Industrial 6.816797%
Vacant Land 4.771758%
PIL - Full 6.816797%
Large Industrial 6.816797%
Vacant Unit/Excess Land 4.771758%
Rate Payer Class 2010 Final Tax Rate
Residential/Farm Class 4.246050%
Multi-Residential 6.374170%
Commercial Occupied Class 8.407179%
Commercial Vacant/Excess Land Sub-class 5.885025%
Industrial Occupied Class 6.912570%
Industrial Vacant/Excess Land Sub-class 4.493170%
Property Class 2010 Final Tax Rate
Residential/Farm 2.880828%
Multi-Residential 2.785681%
Commercial Occupied 6.319883%
Commercial Vacant/Excess 4.423918%
Industrial Occupied 7.613792%
Industrial Vacant/Excess 5.124150%
Farmlands/Managed Forests 0.720207%
55
Table 2.2.16 Tax Levy for the Municipality of Manitouwadge in 2010
Source: Manitouwadge Municipal Office
As with the majority of First Nations in Canada, the three First Nations finance the
administration and operation of their governments through transfer payments from the federal
government. Funding is transferred to the First Nation under several federally-funded
programs and services either directly or indirectly funded by the Government of Canada.
Property Class 2010 Final Tax Rate
Residential 6.152224%
Multi-Residential 6.742246%
Commercial 8.490246%
Commercial Vacant/Excess Land 5.943172%
Industrial 8.740246%
Industrial Vacant/Excess Land 5.681160%
Large Industrial 8.740246%
Large Industrial Vacant/Excess Land 5.681160%
56
3. Scope of the Impacts and Benefits Study
3.1. Objectives
There are many potential impacts and benefits of the Project on local and regional
communities. These impacts and benefits on the surrounding area depend on the social and
economic characteristics within the communities in proximity to the Project site. Utilizing the
information collected during the baseline program, the economic impacts of the Project were
forecasted for the various phases of the mining operation.
3.2. Spatial Context
As with the Socioeconomic Baseline Report, the spatial context of the impacts and benefits
report encompasses the communities within 100 kilometres of the Project site, which was
determined to be the limiting distance than an individual would travel to commute to the
Project site to work.
As a result, the socioeconomic EIS study area includes the following communities and as stated
earlier indirectly includes members of the MNO, RSMIN, JMOCAP who live in these
communities:
Marathon;
Terrace Bay;
Manitouwadge;
Schreiber;
White River;
Pic River First Nation;
Pic Mobert First Nation; and,
Pays Plat First Nation.
3.3. Methods
3.3.1. Identification of Effects
Project effects identified in this report are largely derived from the Project description, socio-economic values identified by stakeholders, and professional judgement and experience. Furthermore, impacts identified in other sections of the report have been considered. Effects identified in other similar mining projects in Ontario and elsewhere have also been considered.
The objective of the assessment of effects is to identify and assess the significance of effects that may arise as a result of the Project. The process followed to assess the effects that the Project may have on socio-economic values was made up of four steps:
Potential effects were identified and assessed;
57
The nature, magnitude, extent and duration of potentially significant effects were predicted;
Mitigation measures that could be implemented to reduce the severity or significance of Project effects were identified; and
The significance of the effects after mitigation measures have been implemented was evaluated.
3.3.2. Effects Prediction
The possible socio-economic effects of the Project were identified using the baseline study and desktop research as reference. The effects identification process considers all phases of the Project: site preparation and construction, operations, and closure/decommissioning.
Effects prediction involved the assessment of each of the effects identified according to the criteria and rating scales outlined below.
Table 3.3 1 Rating Scale
Criteria Rating Scales
Direction • Positive;
• Negative; and
• Neutral
Extent (the spatial limit of the effect) • Local (site specific and/or immediate
surrounding areas)
• Regional; and
• Provincial
Magnitude • Low- where the effect identified affects the
environment in such a way that socio-economic
values are minimally affected;
• Medium- where the affected environment is
altered but socio-economic functions and
processes continue albeit in a modified way; and
valued, important, sensitive or vulnerable systems
or communities are affected; and
• High- where existing socio-economic functions
and processes are altered to the extent that they
will temporarily or permanently cease; and
valued, important, sensitive or vulnerable systems
or communities are substantially affected.
Duration (the predicted lifetime of the effect) • Short term (0 to 2 years)
• Medium term (2 to 15 years)
• Long term (16 to 30 years)- where the effect
will cease after the operational life of the project
either because of natural processes or by human
58
Criteria Rating Scales
intervention.
• Permanent- where the effect will alter socio-
economic conditions or characteristics forever.
Probability (the likelihood of the effect occurring) • Improbable- where the possibility of the effect
occurring is very low.
• Probable- where there is a good possibility
(<50% chance) that the effect will occur.
• Highly probable- where it is most likely (50-
90% chance) that the effect will occur.
• Definite- where the effect will occur regardless
of any prevention measures (>90% chance of
occurring).
Confidence level • Low
• Medium
• High
The magnitude criterion is informed by the collective consideration of cumulative impacts, non-reversibility and irreplaceable resources. Cumulative effects are regarded in terms of the capacity of the environmental resources within the geographic area to respond to change and withstand further stress. Non-reversibility is considered to be the ability of the affected environment to return to its previous state once the cause of the effect has been removed. Irreplaceable resources are defined as a resource for which no reasonable substitute exists.
In all cases, the assignment of a rating is done based on past experience and the professional judgment of the EIS specialists involved as well as through desktop research (e.g., collection and examination of Census data), field data collection (e.g., key informant interviews) and consultation with individuals, organizations, communities and governments potentially affected by the Project.
3.3.3. Economic Effects Assessment
Economic effects can be estimated using an income-expenditure approach, which takes an injection of expenditures into an economy and estimates its ultimate effect on output via successive rounds of consumption and saving as the income circulates. Each time a dollar is spent in the local economy, a portion is spent and a portion is saved and subsequent portions that are spent continue to have an effect that ultimately is a multiple of the original expenditure – hence the term “multiplier effect”.
We can rewrite total economic output Y as a function of the expenditure base E where Y is a multiple of the expenditure activity multiplied by the economic expenditure multiplier k or:
59
(1) Y = kE
Any change in income is thus a function of two key variables – the initial expenditure change and the multiplier. The larger the expenditure change or the multiplier, the greater will be the economic impact. As well, the greater the tendency to consume local goods, then the greater will be the recirculation of spending and the larger the economic impact.
The objectives of economic effects analysis via the income-expenditure approach are to categorize all of the expenditures E and then to select a multiplier to apply to those estimates and generate a total economic impact. A range of multipliers drawn from the literature are used as the literature suggests there can be a range of estimates for multipliers with the largest being for large, relatively self-sufficient economies and smaller ones for regional and local economies that are more dependent on other economies. Naturally, any estimate of economic effects is sensitive to the assumptions used. In addition, economic activity also gives rise to a revenue base that government can tax and the application of government revenue category to GDP ratios to the increase in GDP can also generate an estimate of the potential contribution to government revenues of such a project.
3.3.4. Valued Ecosystem Components (VECs)
A Valued Ecosystem Component (VEC), for purposes of this socioeconomic assessment, is a component of the human environment that has value to a community or to society and can be measured or assessed – quantitatively or qualitatively.
VECs are used to measure the potential effects of the Project on the human (e.g., social and economic) environment. The effects assessment focuses on components of the environment (VECs) that are identified as having particular importance. VECs have been selected based on: professional judgment and experience with other similar projects, data collected as part of the baseline study, guidance from regulatory agencies (i.e., EIS guidelines), and consultation with individuals, organizations, communities and governments potentially affected by the Project.
The VECs identified for the purpose of assessing the potential socioeconomic effects of the
Project on the environment are listed in Table 3.3.2 below.
Table 3.3 2 VECs used for the Marathon PGM-Cu Project Socioeconomic Effects Assessment Environmental
Component
VEC Rationale and relationship to the Project site
Social
Environment
Population
Demographics
The demographics of local communities may change in
response to people moving into these communities for
economic opportunities.
Housing The cost and availability of housing in local communities
60
Environmental
Component
VEC Rationale and relationship to the Project site
could be affected in response to people moving into these
communities for economic opportunities.
Education and
Training
The capacity of the education systems in local communities
could be affected in response to people moving into these
communities for economic opportunities.
Infrastructure The capacity of infrastructure (e.g., sewage collection and
treatment) in local communities could be affected in
response to people moving into these communities for
economic opportunities.
Community services Access to community services for local communities could
be influenced (positively or negatively) by the development
of the Project.
Health services Access to health services for local communities could be
influenced (positively or negatively) by the development of
the Project.
Emergency services Access to emergency services for local communities could
be influenced (positively or negatively) by the development
of the Project.
Traffic Traffic levels and patterns in and around local communities
could be affected by the Project.
Economic
Environment
Employment and
income
The Project will both directly and indirectly create
employment in local communities and the region, and
result in higher incomes.
Government Revenue Tax revenues related to the development of the Project will
accrue to various levels of government.
Economic and business
development
The Project will create business development opportunities
and provide opportunity for local and regional economic
development and diversification.
61
4. Assessment of Potential Effects
4.1. Social Environment
The main indicators used to assess potential effects during each phase of the Project on the
social environment are population demographics, housing, education and training,
infrastructure, community services, health services, emergency services, and traffic.
4.1.1. Site Preparation and Construction Phase
Population Demographics
It is expected that approximately 1200 person years of employment will be created for the
construction phase of the Project and that the majority of the workers involved during this
phase will be short term (i.e., working on a rotational basis) and likely will not result in
permanent additions to the population of local communities and the region. However, as
current or former residents of the region recently displaced by developments in the forest
sector may have suitable skills for employment in the Project during construction, it is likely
that some of these workers (in some cases with families) will decide either to remain and take a
construction job, or return to Marathon or to other local communities for a construction job.
The decline in economic activity experienced in the Northwestern Ontario region, particularly in
the forest sector, has been described in the Socioeconomic Baseline Report. This decline has
resulted in a substantial population loss, particularly of young workers. As noted above, the
permanent or temporary closures of pulp mills and other forest sector operations in Marathon,
Manitouwadge, White River, and Terrace Bay have contributed to significant job and resultant
population losses. The population in the community of Schreiber has also experienced
population decline over the years, as result of conditions in the forest sector and declines in
employment in transportation (Canadian Pacific Railway has historically been a major employer
in the community). There has been some increase in the population of the reserve communities
of Pic River and Pic Mobert North, while there has been population decrease in Pic Mobert
South and Pays Plat, between 2006 and 2011.
As noted above, communities in the region have been experiencing significant population
decline (e.g., the population of Marathon decreased from 4,416 to 3,353 residents between
1991 and 2011), and the losses in some age groups (e.g., children/youth, young workers – 5-14
and 25-44 age brackets) have been particularly dramatic. Therefore, any gains in population as
a result of the ability of local residents to take up jobs directly or indirectly with the Project that
may contribute to reversing this negative demographic trend will represent a positive effect of
the Project. Population gains made during the construction phase may be unbalanced from the
perspective of gender (i.e., male: female ratio) due to the majority of workers being males, and
62
may be of relatively short duration, but in a context of general population decline represent a
positive effect.
The population effect of the Project is positive, of low to medium magnitude during
construction, and will last for the majority of the construction phase (18-24 months) or possibly
longer.
4.1.1.1. Housing
An accommodations complex for housing workers and management during the construction
phase will be ready to accommodate project construction workers. Workers building the
accommodations complex will be easily accommodated in rooms in hotels/motels and rental
units, including the three existing motels which will be owned by SCI.
As the Project site is located approximately 10 km to the North of the Town of Marathon, it
should be expected that demand for housing and short-term accommodations – particularly
during the construction phase – will be manifest primarily in Marathon. Other communities
where housing and accommodations may be available (e.g., Terrace Bay, Schreiber,
Manitouwadge, and White River) are located at greater distances – i.e., in excess of 70 km –
from the Project site. Some workers, particularly those intending to remain in the area in the
long term, may choose to commute from those communities. However, during the construction
phase, it can be expected that high demand for housing and accommodation will affect
primarily the community of Marathon.
Estimates presented in the Socioeconomic Baseline Report suggest that the vacancy rate for
owned dwellings in Marathon was below 2 percent in 2011 – with less than 20 residential units
listed in the Multiple Listing Service (MLS) website operated by the Canadian Real Estate
Association. A number of fully serviced lots were available for purchase, and additional lots
would become available in an approved subdivision development. The vacancy rate for possible
rental units (unoccupied private dwellings) was estimated to be in excess of 10 percent. Census
data suggest that monthly payments for rented and owner-occupied dwellings have been stable
(with some decreases) over the past decade. There are approximately a total of 177 hotel and
motel rooms in Marathon, including the three motels owned by SCI, which have a total of 80
rooms.
Given the estimated availability of housing and temporary accommodations in Marathon, it is
likely that the demand created by the Project (due to the expected size of the workforce)
during the construction phase will result in some inflation of short term housing costs.
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This is a low negative effect of the Project. On the other hand, owners of rental units will
benefit from increased demand and possible higher rents – as will the owners of hotels and
motels that are able to cater to the needs of the Project.
Considering the duration of the construction phase, this effect is expected to be of short
duration (temporary) – although the local housing market can be expected to continue to
experience effects as the Project transitions to the operations phase. The effect is largely
negative (although positive for some individuals – e.g., owners of hotels/motels or rental units),
of low magnitude (a minimal effect), and of short to medium duration.
4.1.1.2. Education and Training
Increased demand for education services is only likely to occur during the construction phase if
some workers relocate to local communities with their families. As noted in the Socioeconomic
Baseline Report (gck, 2012a), information supplied by school board officials suggests that the
elementary and secondary schools in both Marathon and Terrace Bay are operating well below
capacity (in most cases, below 50 per cent of current capacity) and would therefore be capable
of accommodating even significant increases in enrolment. Any increases in demand for school
enrolments that do occur during the construction phase will have no noticeable effect or create
any strain on the school system.
The Project’s demand for suitably qualified workers in the construction phase may result in new
training or retraining opportunities for young and/or Aboriginal workers – or for workers
displaced by reduced activity in the forest sector, who have remained in the project area.
There are institutions in the region which offer relevant training for careers in the trades,
administration, and also mining. These include the satellite campus of Confederation College in
Marathon, as well as other institutions in Thunder Bay and Sault Sainte Marie. The Project may
offer scholarships or support for apprenticeships or other training opportunities for local –
particularly Aboriginal – workers.
This effect is positive, of medium magnitude, and of medium duration (although likely
extending into, and more significant in, the operations phase).
4.1.1.3. Infrastructure
Demand for community infrastructure (e.g., water, sewage) will increase considerably due to
the presence of the Project and up to 400 workers at any one time, during the construction
phase. Based on information presented in the Socioeconomic Baseline Report, community
infrastructure capacity is considerably higher than that required to meet current demand (or
projected demand in the absence of the Project) – therefore, the Project is not likely to create a
significant strain on such infrastructure during the construction phase.
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The property identified for purchase to construct the Accommodation Complex has
water/waste water infrastructure to the lot but a connection to the complex is required once
the building construction is complete. The potable water infrastructure system in Marathon
was designed for a population of approximately 5,500. The community’s wastewater treatment
plant is presently operating at approximately 25 percent of its design capacity. There is a landfill
site within the municipal boundaries of Marathon, which is operating close to capacity; the
municipality is currently applying to extend the boundaries of the existing landfill site and to
designate a new site as a regional landfill site.
The construction phase of the Project is not likely to create strain on potable water or
wastewater treatment infrastructure since it is operating at 25% of its designed capacity. The
landfill site is planned for closure and is not prepared to accommodate any increases in usage.
The effects on community infrastructure during the construction phase are neutral to negative
(landfill), but of low magnitude (a minimal effect) and of short to medium duration.
4.1.1.4. Community Services
Given the short term nature of a temporary workforce engaged on a rotational basis, it is not
expected that construction phase workers will make significant use of local community services.
Communities such as Marathon and Terrace Bay offer a wide variety of community services,
and – given recent population decline – these are generally not operating at capacity. Services
that are provided on a user-fee basis, or where a minimum number of participants/recipients
are required to guarantee funding or continuation of programs, may benefit from increased
demand.
Changes in demand for community services are largely based on population growth – therefore,
the extent to which workers choose to relocate to local communities during various phases of
the Project will influence the extent to which demand for community services will change.
Notwithstanding this, temporary residents (i.e., workers present in the local communities only
during the construction phase) may also require access to certain types of services.
Social services, such as housing assistance or personal counseling, may be in higher demand
due to the presence of the Project. Demand for services such as education may increase if some
construction workers choose to relocate, with families, to local communities for the
construction phase. These possible increases in demand are likely to be modest, and therefore
not likely to present a significant strain on services.
Increased demand for education services is only likely to occur during the construction phase if
some workers relocate to local communities with their families. As noted in the Socioeconomic
Baseline Report, information supplied by school board officials suggests that the elementary
and secondary schools in both Marathon and Terrace Bay are operating well below capacity (in
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most cases, below 50 per cent of current capacity) and would therefore be capable of
accommodating even significant increases in enrolment. Any increases in demand for school
enrolments that do occur during the construction phase will have no noticeable effect or create
any strain on the school system.
During off-work hours, workers engaged in the construction phase of the Project may choose to
utilize some of the sport and leisure amenities available in local communities. In Marathon and
Terrace Bay there are golf courses, hiking trails, various sports fields or courts, as well as
crosscountry skiing and snowmobiling trails (which are maintained by local clubs). Marathon
has the only indoor swimming pool between Thunder Bay and Sault Ste-Marie. There are also
gyms, as well as indoor facilities for hockey and curling. The presence of the Project may result
in increase in demand for some of these amenities. However, as the population of local
communities has been in decline, it is unlikely that use of these facilities by Project personnel
will create any significant strains. Furthermore, Project workers’ involvement in some of the
local clubs may contribute to the continuation of some of the existing services or amenities.
The effects on community services during the construction phase are likely to be both negative
and positive (depending on the type of service), of low magnitude, and of short to medium
duration.
4.1.1.5. Health Services
The Project workers engaged in construction may occasionally require the services provided in
local medical facilities. Workplace injuries or illnesses may occur during construction work and
injured or sick workers may need to attend local clinics. It is likely that for any long-term
treatments workers will continue to use the services of family physicians or specialists located
in or near to their home communities.
There will be a first aid station at the project site as well as health facilities in local communities
that provide a range of medical services. In both Marathon and Terrace Bay, there are 25-bed
hospitals as well as clinics. Tertiary care is provided at a regional hospital in Thunder Bay. Air
ambulance service is available.
As is the case with other services, losses of population in recent years have resulted in
reductions in the numbers of clients/patients in medical clinics and a modest increase in
demand will likely not cause a significant strain on the system. Nevertheless, the number of
workers to be engaged during construction – and likely requiring services in Marathon rather
than elsewhere in the region – is considerable relative to the size of the local population and
the number of beds and doctors available. In the event of an emergency (e.g., vehicle or
construction accident) it is possible that medical services in the local community will be
stressed.
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The possibility of emergency situations requiring medical treatment for Project personnel
implies that certain events may cause strain on local health services; under normal
circumstances, any increases in demand due to the Project are likely to be modest and possible
to accommodate. The effects on health services during the construction phase are expected to
be negative, of low magnitude, and of short to medium duration.
4.1.1.6. Emergency Services
It is planned to have a fire-fighting pumper truck and a foam suppression unit on site during
construction. The project will have a trained (ERT) Emergency Rescue Team on-site; in addition
the town of Marathon has agreed to supplement emergency services from the Marathon Fire
Services and the Emergency Medical Services of Marathon. The presence of the Project and its
workforce could result in higher demand for services such as fire protection and ambulance
services. The increased demand for such services during an emergency situation may be
considerable and have the potential to stress local services.
The Marathon Fire Department is comprised of volunteer members and provides a variety of
services – ranging from structural and wild land fire-fighting to vehicle extrication and water
and ice rescue – for a relatively large area around Marathon. The local Emergency Medical
Services fleet of the District of Thunder Bay has 45 vehicles spread across the district, with 7
paramedics on staff at the base in Marathon – which serves Marathon as well as neighbouring
communities, provincial parks, highways, and the Hemlo mine. The Marathon detachment of
the Ontario Provincial Police (OPP) is comprised of three full-time officers, who are responsible
for approximately 150 km of the TransCanada Highway.
Police detachments in the region are typically responsible for policing large geographical areas.
Therefore, the presence of as many as 400 workers during the construction phase of the Project
may create a strain on policing services – although with limited frequency and low probability.
The effect of the Project on emergency and protective services during construction is likely to
be negative, low in magnitude, and of short duration.
4.1.1.7. Traffic
The Construction Phase of the Project is expected to contribute to an increase in road traffic
volume (90 passenger vehicles for day shift; 60 passenger vehicles for night shift; 6 tractor
trailer loads / 12 hr. day shift (even split between Highway 17 east and west)) in the vicinity of
the Project site. These vehicle movements will affect primarily Peninsula/Camp 19 Road and
Highway 17, but an increase in traffic can also be expected throughout the Town of Marathon.
The traffic study conducted by Engineering Northwest Ltd. (ENL, 2012) focuses on the
intersection of Highway 17 and Camp 19/Peninsula Road, and examines effects to operational
integrity.
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The effect on traffic volume will be negative, but of low magnitude, and local in extent. The
projected increases in traffic volume will not be significant or result in unacceptable reductions
in levels of service (‘A’ or ‘B’ levels of service), and will not require significant improvements in
road infrastructure. Traffic exiting Peninsula Road and Camp 19 Road will operate at LOS B –
minor street approach begins to notice absence of available gaps. Overall, the Highway 17,
Peninsula Road, and Camp 19 Road intersection during the site preparation and construction
phase will remain at LOS A – little or no conflicting traffic for minor street approach, with an
average total delay of less than 10 seconds per vehicle.
4.1.2. Operations Phase
4.1.2.1. Population Demographics
It is expected that approximately 365 permanent positions will be created for the operations
phase of the Project, and some of the positions will likely be filled by current or former
residents of local communities and the region. It is possible that some workers (in some cases
with families) will decide to relocate to Marathon or to other local communities. It is therefore
expected that the Project will result in a net influx of population; conservative estimates
suggest that approximately 35 per cent of the workers in the operations phase of the Project
will be from – or returning to – the region.
As noted above, the permanent or temporary closures of pulp mills and other forest sector
operations in the region have contributed to significant population losses. Communities in the
region have been experiencing significant population decline in recent years, with the most
significant losses affecting the younger segments of the population. Therefore, any gains in
population that may contribute to reversing this negative demographic trend will represent a
positive effect of the Project. The population effect of the Project is positive, of medium to high
magnitude (depending on the ability and willingness of workers to relocate to local
communities), and is expected to be of medium duration (up to 11.5 years) or permanent.
4.1.2.2. Housing
It is planned that an employee accommodation complex with approximately 250 rooms will be
constructed within the Town of Marathon, reducing or eliminating the need for rotational
workers to utilize rooms in hotels/motels and rental units during the operations phase. This
development will result in a significant reduction in the demand for rental housing and
motel/hotel accommodations during the operations phase.
As the positions to be filled in the operations phase of the Project are of a more ‘permanent’
nature than those available during site preparation and construction, it is likely that some
workers will choose to relocate (in some cases, with families) to the Town of Marathon or to
other local communities – e.g., Terrace Bay, which offers a range of community services and
amenities. Other communities located at greater distances from the Project site (e.g.,
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Schreiber, Manitouwadge, and White River) may also provide settlement opportunities for
some workers who may choose to commute from those communities. As during the
construction phase, it can be expected that increased demand for housing and accommodation
will primarily affect the community of Marathon.
Estimates presented in the Socioeconomic Baseline Report suggest that the vacancy rate for
owned dwellings in Marathon was below 2 per cent in 2011 – with less than 20 residential units
listed in the MLS website operated by the Canadian Real Estate Association. It is understood
that 20 fully serviced lots are available immediately for purchase, and that an additional 80 lots
could become available in an approved subdivision development. It is likely, therefore, that
some workers who choose to relocate to Marathon for work in the operations phase of the
Project will be able to purchase or build homes in the community. However, the availability of
housing may not be sufficient to meet the demand created by the Project and resulting
increased economic activity in the short term (although supply will likely increase as the new
subdivision is developed) – as result, some workers may choose to relocate to other
communities; the vacancy rate in Terrace Bay is higher than in Marathon, and house prices
comparable.
There are approximately 177 hotel and motel rooms in Marathon (including 3 motels about to
be acquired by SCI) and these may provide sufficient capacity for visitors or temporary workers
and contractors once the employee accommodation complex has been constructed. During the
operations phase, assuming normal conditions, the number of hotel/motel rooms available
should be expected to satisfy demand. Any constraints created for sectors such as tourism due
to the high demand of hotel and motel rooms during construction should be expected to
diminish considerably as Project workers move to the accommodations complex.
It is likely that the demand for housing created by the Project during the construction phase
and continuing into the operations phase will result in increases in housing costs and possible
shortages (however, house prices and rents should be expected to stabilize during the
operations phase). Increased housing cost is a negative effect of the Project, in particular from
the point of view of local individuals or families with limited financial resources (e.g., elderly on
fixed incomes, persons receiving social assistance). This effect is expected to be of low
magnitude, and of medium duration.
4.1.2.3. Education and Training
The Project’s demand for suitably qualified workers for the operations phase in particular may
result in new training or retraining opportunities for young and/or Aboriginal workers, and for
workers recently made redundant due to reduced activity in the forest sector.
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There are institutions in the region which offer relevant training for careers in the trades,
administration, and mining. These include the satellite campus of Confederation College in
Marathon, as well as other institutions in Thunder Bay and Sault Ste. Marie. The Project will
provide onsite training opportunities during the later construction phase and the operational
phase of the project. It is anticipated that some local – particularly Aboriginal – workers will be
attracted to these opportunities. To the extent that the Project will generate employment
opportunities, and require specialized personnel for the operations phase, opportunities for
training or retraining (whether sponsored directly by the Project or not) should be expected to
emerge. This will create opportunities for workers to diversify their skills and enhance their
employability. This effect is positive, of medium magnitude, and of medium duration.
4.1.2.4. Infrastructure
Demand for community infrastructure (e.g., water, sewage) will increase considerably during
the construction phase, and continue into the operations phase of the Project. As capacity of
local infrastructure is considerably higher than that required to meet current demand (or
projected demand in the absence of the Project), it can be expected that generally there will
not be a significant strain on infrastructure in the operations phase. The landfill site in the Town
of Marathon is operating near capacity but there are plans to extend the site and to eventual
establish a new regional disposal site. A non-hazardous disposal area is proposed within the
process solids management facility to accept non-hazardous waste from the mine site. The
Town of Marathon has indicated it has capacity for the refuse generated from the motels and
Accommodation Complex.
The effects on community infrastructure during the operations phase are likely to be negative,
although of low magnitude. This effect is likely to be of medium duration. The presence of the
Project is not likely to create strain on potable water or wastewater treatment infrastructure,
although the Town’s waste facility is presently not prepared to accommodate any increases.
4.1.2.5. Community Services
As the workforce engaged for the operations phase of the Project is not likely to be as ‘short
term’ as many of the workers employed in the construction phase, it can be expected that use
of local community services will increase during the operations phase. As stated above,
communities such as Marathon and Terrace Bay offer a wide variety of community services
and, due to population decline, these are generally not operating at capacity.
Demand for community services is based on population. Some population growth can be
expected to occur in local communities in the operations phase as some workers (possibly in
the range of 100 to 150 workers, some with families) relocate to the area. Demand for a wider
range services (e.g., social support, family, recreational and religious) is therefore likely to
increase.
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With the relocation of workers and their families to Marathon and other communities, demand
for education services is expected to increase. These possible increases in demand are likely to
be more significant than any increases experienced during the construction phase;
notwithstanding this, the school enrolment and capacity estimates presented in the
Socioeconomic Baseline Report (gck, 2011) suggest that schools (both elementary and
secondary) in these communities will be able to absorb increases in enrolment without strain
on the school system.
The sport and leisure amenities available in local communities should be expected to absorb
increases in demand/usage, although the indoor swimming pool in Marathon is the only one in
the region and may become more heavily used as workers and families choose to utilize the
facility. Amenities such as groomed cross-country skiing and snowmobiling trails, which are
maintained by local clubs, may benefit from an increase in the number of users.
The effects on community services during the operations phase are likely to be both negative
and positive (depending on the type of service), of low magnitude, and of medium duration.
4.1.2.6. Health Services
Project workers, whether permanently residing in local communities or residing in the
employee housing complex, will occasionally require access to health services during the
operations phase of the Project. In addition, some workers and their families are likely to
relocate to communities such as Marathon, Terrace Bay, and others. It is therefore very likely
that there will be increases in demand for health services during the operations phase of the
Project.
As noted above, losses of population in recent years have resulted in reductions in the numbers
of clients/patients in health clinics – although the elderly population has been increasing. Given
the number of physicians and nurses employed in local hospitals and clinics, presented in the
Socioeconomic Baseline Study, health services should be expected to absorb the increase in
demand resulting from the population growth projected for the operations phase.
Nevertheless, emergency situations (however unlikely), involving a significant number of
workers could result in a strain (albeit temporary) on local medical services.
The effects on health services during the operations phase are expected to be negative, of low
magnitude, and of medium duration to permanent (with the exception of infrequent
emergency events).
4.1.2.7. Emergency Services
As with the construction phase of the Project, it is expected that during operations there will be
additional demand for services such as fire protection and ambulance services in addition to the
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firefighting pumper truck and the foam suppression unit that will be on site. The project will
have a trained (ERT) Emergency Rescue Team on site; in addition the Town of Marathon has
agreed to supplement of emergency services from the Marathon Fire Services and the
Emergency Medical Services of Marathon.
The Marathon Fire Department is comprised of volunteer members and services a relatively
large geographical area. The local Emergency Medical Services has vehicles and 7 paramedics
on staff at the base in Marathon – which serves Marathon as well as neighbouring
communities, provincial parks, highways, and the Hemlo mine. The Marathon detachment of
the Ontario Provincial Police (OPP) is comprised of three full-time officers, who are responsible
for approximately 150 km of the TransCanada Highway.
Police detachments in the region are typically responsible for policing large geographical areas.
Therefore, the presence of approximately 365 workers during this phase of the Project may
create a strain on policing services – although with limited frequency.
The effect of the Project on emergency and protective services during operations is likely to be
negative, low in magnitude, and of medium duration.
4.1.2.8. Traffic
The Project is expected to contribute to an increase in road traffic volume (60 passenger
vehicles entering the site for each of the day and night shifts; 25 vehicles entering the site for
office staff shift; 50 tractor trailer truckloads per day of concentrate product with a haul route
consisting of the crossing of Highway 17 to Peninsula Road and then to a rail link in the Town of
Marathon, haul time from 7 a.m. to 11 p.m. each day; 8 tractor trailer truckloads per day of
concentrate hauled to a smelter/refinery in Quebec via Hwy 17 and Hwy 101; 6 tractor trailer
loads of supplies) in the vicinity of the Project site. These vehicle movements will affect
primarily Peninsula/Camp 19 Road and Highway 17, but an increase in traffic can also be
expected throughout the Town of Marathon.
The traffic study conducted by Engineering Northwest Ltd. (ENL, 2012) focused on the
intersection of Highway 17 and Camp 19/Peninsula Road, and examines effects to operational
integrity.
The effect on traffic volume will be negative, but of low magnitude, and local in extent. The
projected increases in traffic volume will not be significant or result in unacceptable reductions
in levels of service (‘A’ or ‘B’ levels of service), and will not require significant improvements in
road infrastructure.
Increased traffic in the Town of Marathon will occur during shift change, when employees are
travelling to and from work, and during transport of concentrate from the Project site to the rail
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load-out facility in Marathon, if this facility becomes the preferred choice for concentrate
transportation. Increased traffic volume will likely cause delays and could result in safety issues
related to collisions with other vehicles and pedestrians. To mitigate safety issues with added
traffic, shift changes will occur at times that do not coincide with work and school release, with
ideal timing in the later evening. With more of the workforce being local, increased traffic
during shift changes will be observed within the community as employees travel from the mine
to their homes.
4.1.3. Decommissioning and Closure Phase
4.1.3.1. Population Demographics
The impacts and benefits associated with the decommissioning and closure phase of the Project
have a commencement date for which residents can prepare. The decommissioning and closure
phase of the mine will require a workforce of approximately 100 individuals for one year
following closure of the mine. The effect on population demographics during this phase is loss
of employment and business opportunities and the potential migration of individuals away
from the Project area.
If former employees find employment in the area, they may not need to relocate. Current
anticipated opportunities include mining potential in the McFaulds Lake area (Ring of Fire) of
the James Bay Lowlands and Osisko’s Hammond Reef interests. There would also be potential
opportunities for fly-in/fly-out in Canada that could be a source of employment for employees
wanting to remain with their families in the Marathon area.
4.1.3.2. Housing
The decommissioning and closure phase of the Project has the potential to result in former
employees relocating elsewhere for work, resulting in a relatively acute population drop in the
Project area. A drop in population could result in a surplus of houses on the market, causing a
sharp decrease in house value. The accommodations complex will negate the need to construct
an abundance of new housing developments and therefore, a surplus of houses should not
immediately appear on the market after the closure phase of the Project. If gainful employment
is found through other opportunities (e.g., proposed mining developments and forest sector
initiatives), the population and housing market could remain constant.
Reduced demand for housing can result in increased affordability – however, reductions in
house prices can have detrimental effects for those wishing to re-sell (and relocate – possibly as
result of mine closure). It is expected that the effects of this transition will be negative, of low
magnitude and of short duration.
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4.1.3.3. Education and Training
If additional teachers and support staff are hired during other phases of the project, they might
need to find alternate employment due to decrease in enrolment from people moving away
from the area. If gainful employment of former mine workers is found through other
opportunities, the staffing level in schools could remain constant.
4.1.3.4. Infrastructure
The decommissioning and closure phase of the Project is not forecasted to have any significant
impacts on the infrastructure in the area.
4.1.3.5. Community Services
While this development implies that there will not be strain placed on community services,
reductions in demand (and in some cases, user fees) may result in the cancellation of certain
services. It is expected that the effects of this transition will be negative, of low magnitude and
of short duration.
4.1.3.6. Health and Emergency Services
Reductions in demand for health or emergency services resulting from potential migration of
employees and their families away from the Project area may result in downsizing of certain
services.
4.1.3.7. Traffic
Traffic during the decommissioning and closure phase of the Project will be lower than during
other phases of the Project. The workforce requires approximately 100 individuals and these
workers will be comprised of a combination of people that relocated during the Operations
phase and individuals that are part of the rotational workforce that would be accommodated in
the Accommodations Complex, or other housing. Traffic resulting from the decommissioning
and closure phase of the Project is not forecasted to have any significant adverse effects on
current service levels of local roads.
4.2. Economic Environment
The VECs used to assess potential effects during each phase of the Project on economic factors
were employment and income, government revenues, and economic and business
development.
The expenditure data for estimating the projected economic impact of Stillwater Canada’s
Marathon Platinum Group Metals Copper Project was provided by Stillwater Canada. The
project will cover the period 2013 to 2028 and will operate in three phases: site preparation
and construction (2013-2015), operations (2016-2027) and closure (2028) for a total of 16
years. The total disbursements (capital, wages and salaries, materials and supplies, etc…) in
nominal dollars for the construction and preparation phase are estimated at 443.6 million
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dollars. The total disbursements for the operating phase are estimated at 760.1 million dollars
and for the closure phase at 24.5 million dollars. It is estimated by Stillwater that each year of
the construction and preparation phase will create direct employment of 400 full-time jobs,
each year of operation will create 74 jobs and the closure year will generate 40 jobs.
The economic impact calculation will sum the value of disbursements and apply economic
multipliers to estimate the economic impact of the project on the economy in terms of GDP
generated via the multiplier effect. The values will be summed and converted into 2012 dollars
to provide an estimate of the total economic impact of the project at the present point in time.
For the purposes of inflation-adjusted dollars, an annual inflation rate of 2 percent will be
assumed.3
In terms of choice of multipliers, these will range from 1.5 to 2.0 and will represent lower and
upper bound estimates of the potential economic impact of the project.4 This is a reasonable
range given other studies of mining economic impact. For example, a study for British
Columbia found each dollar of expenditures resulted in 1.73 dollars of total economic, which
means a multiplier of 1.73.5 Another study for mining in Minnesota results in a multiplier of
1.61.6 The United States Federal Bureau of Economic Analysis has estimated multipliers for
mining in Alaska and its metal mining expenditure multiplier is estimated at 1.6.7 Yet another
county level study for the United States places the value of the multiplier for mining at 1.6.8
The impact will be divided into three types: direct, indirect and induced. The direct impact
consists of the project’s direct expenditure on wages and salaries for the labour employed in
the project. This represents a direct expenditure injection into the economy. The indirect
impact is the expenditure impact on jobs, wages and output created by businesses, which are
inputs into the project or the supplier impacts of the project from expenditures made by
Stillwater. This represents expenditures by Stillwater on capital, supplies, materials and
equipment. Finally, the induced impacts are the result of the spending on direct and indirect
expenditures via income circulation and are derived via the multiplier effect. This is the impact
of the recirculation of income from the direct expenditures on wages and salaries made by
3 Inflation in both Canada and Ontario using the Consumer Price Index has been approximately 2% for a
number of years. The Bank of Canada’s inflation control policy in place since 1991 is not expected to change and the target range is set a 1 to 3 percent with the aim of keeping inflation at the 2 percent midpoint. See: www.bankofcanada.ca/monetary-policy-introduction/framework/inflation-control-target/ 4 For example, see Wen-Huei Chang (2001) for ranges of multipliers. Generally, they tend to be between
1 and 3 across various industries. The ones in mining tend to be between 1.5 and 2. 5 Economic Impact Analysis, Mining Association of British Columbia, October 2011, p.21.
6 The Economic Impact of Ferrous and Non-Ferrous Mining on the State of Minnesota And on the
Arrowhead Region and Douglas County, WI (2009) Bureau of Business and Economic Research, Labovitz School of business and Economics, University of Minnesota, Duluth. 7 This is a payroll expenditure multiplier. See McDowell Group (2006) The Economic Impact of Alaska’s
Mining Industry. Employment multipliers in this study were also provided and were closer to 2.6. 8 See Clouser et al.
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Stillwater and the indirect expenditures on materials, supplies and equipment made by
Stillwater. The sum of direct, indirect and induced impact is the total economic impact of the
Project.
An additional assumption is required to estimate the proportion of the direct and indirect
expenditure that occurs within the domestic economy. Based on data provided by Stillwater,
an initial expenditure leakage of 6 percent is assumed meaning that 94 percent of the initial
direct and indirect expenditure is made from suppliers and sources within Canada.
Expanding economic activity also generates employment growth. The average impact of the
employment creation will be calculated by calculating an estimate of per employee GDP for
Ontario for each year of the project and dividing it into the induced growth in GDP obtained
through the multiplier effect. Starting with an estimate of GDP per employee of 113,487 in
2013 it will be assumed that there is real productivity growth of 1% annually over the 2013 to
2028 period.9 This approach yields comparable estimates to simply multiplying direct initial
employment expenditures by an employment multiplier.10 In terms of measuring
employment, one full-time person working for one year is defined as a person year of
employment and employment will be reported in terms of person years.11 A person year of
employment is approximately equal to one full time job.
Finally, an estimate of aggregate government revenues will also be generated by applying the
revenue to GDP ratios for a set of major taxes at the federal, provincial and local government
levels using revenue and expenditure data from Statistics Canada.12 For the federal level, the
ratio of total income tax (personal and corporate) to GDP was 0.10 and the ratio of federal
consumption tax revenue to GDP was 0.03. For the provincial level, ratios were calculated for
income taxes (personal and corporate), mining and logging taxes, consumption and sales taxes
and property and related taxes generating a combined ratio of 0.14. Meanwhile, property and
related taxes were used for local government revenue and resulted in a ratio of 0.03. All
together across the three levels, the revenue to GDP ratio is 0.30. This approach compares
Dungan and Murphy study of a representative mine estimate that a year’s operation adds 280
9 This assumes nominal per employee GDP growth of 3% and inflation of 2%.
10 Walden argues that most employment multipliers are in the range of 20 to 40 employees per million
dollars of initial expenditure. 11
Definitions of person years can vary but a person working full-time for forty hours a week for 4 weeks a month for 11 months a year (assuming four weeks for vacation) would generate 1,760 hours of work. Thus a person-year can be estimated as someone working full-time for 1,760 hours per year. 12
This is currently available up to 2009 and therefore revenue and GDP for the 2008-2009 period were used. While this period did see a major recession, GDP and revenues both dropped meaning the ratios were relative stable compared to prior periods.
76
million dollars to GDP while generating 84 million dollars in government revenue – also a
revenue to GDP share of 30 percent.13
4.2.1. Site Preparation and Construction The estimated economic impact of the site preparation and construction phase is as follows:
Total Disbursements in 2012 dollars (Direct & Indirect Expenditures) $426,368,904
o Direct (Wages and salaries of project) $128,842,600
o Indirect (Supplies, equipment, materials, etc…) $297,526,304
Economic Impact (Total of Direct & Indirect & Induced) in 2012 dollars
o Based on a multiplier of 1.5 $601,180,155
o Based on a multiplier of 2.0 $801,573,539
Direct Employment (Person-years) 1,200
Total Employment (Direct, indirect & Induced Person-years)
o Based on a multiplier of 1.5 2,725
o Based on a multiplier of 2.0 4,473
Government Revenue (2012 dollars)
o Federal
Based on a multiplier of 1.5 $78,153,420
Based on a multiplier of 2.0 $104,204,560
o Provincial
Based on a multiplier of 1.5 $84,165,222
Based on a multiplier of 2.0 $112,220,296
o Municipal
Based on a multiplier of 1.5 $18,035,405
Based on a multiplier of 2.0 $24,047,206
4.2.1.1. Employment and Income
It is estimated that the Project will generate approximately 1200 person years of employment
in the construction phase. In addition to the direct creation of these positions, the Project will
have indirect and induced employment effects in local communities and in the region.
As noted above in recent years, unfavourable economic conditions in the forestry sector have
resulted in the closure of mills and job losses throughout the region (Thunder Bay District) and
elsewhere in the province of Ontario. Employment creation, and increased economic activity, is
therefore a highly valued positive effect of the Project – and creates the possibility for many 13
Dungan and Murphy (2007)
77
residents of local communities to remain in the region, or for others to return. The closure of
the pulp mill operated by Marathon Pulp Inc. in 2009 resulted in job losses for more than 250
workers. Other pulp mills in the region have also closed in recent years.
Employment generated by the Project may effectively ‘replace’ some of the jobs lost in the
forest sector. Employment and business opportunities generated by the Project will result in
higher incomes for some residents of local communities. It is expected that average annual
salaries paid by the Project during construction will be in the $70,000 - $100,000 range. Higher
earnings create the opportunity to contribute to improvements in living standards for some
individuals and families as these create the ability for individuals to retire debt and potentially
to invest in better housing and save for children’s education or for retirement purposes.
Increases in labour income, if accrued to residents of local communities or the region,
contribute to general economic activity. Local businesses are likely to experience increases in
revenue, and are able to hire workers (who will also contribute through spending), and so on.
Multiplier effects of the Project are discussed in the economic effects section of this report.
The employment effect in this phase is positive, of high magnitude (representing a substantial
increase in employment opportunities), and will last for the majority of the construction phase
(18-24 months).
4.2.1.2. Government Revenues
The Project will be subject to taxation and will result in increased revenue for the municipal,
provincial, and federal levels of government. During the construction phase, it is estimated that
total federal government tax revenues in 2012 dollars will range from 78.2 to 104.2 million
dollars; provincial revenues from 84.2 to 112.2 million dollars; and municipal government
revenues from 18.0 to 24.0 million dollars. Tax revenue from the Project may create the
opportunity for the Town of Marathon to invest in improvements in infrastructure, land
development, or services.
Revenues from the Project are a positive economic benefit in communities where major
industrial employers (Marathon Pulp Inc., Terrace Bay Pulp Inc.) have either permanently or
temporarily ceased operations and population numbers have been in decline, resulting in an
erosion of the tax base. The fiscal effect of this Construction Phase of the Project is positive, of
high magnitude, and is expected to last for the entirety of the construction phase (18-24
months).
78
4.2.1.3. Economic and Business Development
The Project will generate opportunities for local and regional businesses to supply goods and
services – both to the Project directly or indirectly due to the presence of workers and
contractors in the local area and region.
Increased economic activity in a region that has experienced economic decline is a highly
valued economic benefit, as it may result in new economic opportunities for displaced workers
or local businesses facing challenges. Businesses that are able to supply goods or services to the
Project (e.g., construction supplies, fuel, equipment, vehicle servicing, accommodation,
catering) may be particularly well positioned to benefit from the presence of the Project.
This effect is positive, of high magnitude (representing a substantial increase in business
opportunities), and will last for the majority of the construction phase (18-24 months).
4.2.2. Operations Phase
The estimated economic impact of the operations phase is as follows:
Total Disbursements in 2012 dollars (Direct & Indirect Expenditures) $638,167,950
o Direct (Wages and salaries of project) $109,374,000
o Indirect (Supplies, equipment, materials, etc…) $528,793,950
Economic Impact (Total of Direct & Indirect & Induced) in 2012 dollars
o Based on a multiplier of 1.5 $899,816,809
o Based on a multiplier of 2.0 $1,199,755,746
Direct Employment (Person-years) 888
Total Employment (Direct, indirect & Induced Person-years)
o Based on a multiplier of 1.5 3,005
o Based on a multiplier of 2.0 5,432
Government Revenue (2012 dollars)
o Federal
Based on a multiplier of 1.5 $116,976,185
Based on a multiplier of 2.0 $155,968,247
o Provincial
Based on a multiplier of 1.5 $125,974,353
Based on a multiplier of 2.0 $167,965,804
o Municipal
Based on a multiplier of 1.5 $26,994,504
Based on a multiplier of 2.0 $35,992,672
79
4.2.2.1. Employment and Income
The Project is expected to employ approximately 365 persons in the operations phase. In
addition to the direct creation of these positions, the Project will have indirect and induced
employment effects in local communities and in the region.
As noted above, unfavourable economic conditions in the forestry sector leading to the closure
of mills and other operations have resulted in job losses throughout the region. The creation of
mining sector positions creates the possibility for many residents of local communities to
remain in the region, and for others to return. This is a positive effect of the project
development, particularly if a significant proportion of the positions in the mine are filled by
workers who reside in (or wish to return to) the region.
Employment and business opportunities generated by the Project will result in higher incomes
for some residents of local communities. It is expected that average annual salaries paid by the
Project during operations will be in the $70,000 to 100,000 range. Higher earnings in turn may
contribute to improvements in living standards for some individuals and families as these
create the ability to invest in better housing and save for children’s education or for retirement
purposes.
Increases in labour income accruing to residents of local communities or the region, contribute
to general economic activity and thus contribute to the buoyancy of other sectors of the
economy. Local businesses experience increases in revenue, and are able to grow and to hire
more workers (who will also contribute through spending), and so on.
The employment effect in this phase is positive, of high magnitude, and will last for the majority
of the operations phase (11.5 years).
4.2.2.2. Government Revenues
The Project will be subject to production royalties, to taxation and will result in increased
revenue for the municipal, provincial, and federal levels of government. It is estimated that
federal revenues will range in total from 117.0 to 156.0 million dollars; provincial from 126.0 to
168.0 million dollars; and municipal from 27.0 to 36.0 million dollars.
Tax revenue from the Project represents a significant contribution to the local tax base and may
create opportunities for governments to invest in improvements in infrastructure, land
development, or services. Therefore, tax revenues from the Project are an economic benefit.
The fiscal effect of the Project is positive, of high magnitude, and is expected to occur
throughout the operations phase (11.5 years).
80
4.2.2.3. Economic and Business Development
The Project will generate opportunities for local and regional businesses to supply goods and
services – both to the Project directly or indirectly due to the presence of workers and
contractors in the local area and region.
Prospective suppliers of goods and services for the Project may need to become informed of
product requirements (both quantities and quality specifications) in order to meet the relevant
procurement criteria. Businesses that are able to supply goods or services to the Project (e.g.,
construction supplies, fuel, equipment, vehicle servicing, accommodation, catering) will benefit
from the presence of the Project. The company is committed to ensure, as much as is
reasonable and feasible, that all local businesses and Aboriginal communities will have a fair
opportunity to supply the project and operation with goods and services.
This effect is positive, of high magnitude, and of medium duration – i.e., lasting for the majority
of the operations phase (11.5 years).
4.2.3. Decommissioning and Closure Phase The estimated economic impact of the closure phase is as follows:
Total Disbursements in 2012 dollars (Direct & Indirect Expenditures) $17,758,563
o Direct (Wages and salaries of project) $2,468,563
o Indirect (Supplies, equipment, materials, etc…) $15,290,000
Economic Impact (Total of Direct & Indirect & Induced) in 2012 dollars
o Based on a multiplier of 1.5 $25,039,574
o Based on a multiplier of 2.0 $33,386,099
Direct Employment (Person-years) 40
Total Employment (Direct, indirect & Induced Person-years)
o Based on a multiplier of 1.5 95
o Based on a multiplier of 2.0 159
Government Revenue (2012 dollars)
o Federal
Based on a multiplier of 1.5 $3,255,145
Based on a multiplier of 2.0 $4,340,193
o Provincial
Based on a multiplier of 1.5 $3,505,540
Based on a multiplier of 2.0 $4,674,054
o Municipal
81
Based on a multiplier of 1.5 $751,187
Based on a multiplier of 2.0 $1,001,583
4.2.3.1. Employment and Income
The most active portion of the closure phase is expected to last approximately one year, during
which some 100 workers may remain employed by the Project.
Loss of jobs has a multitude of effects in a resource-based economy such as that of
Northwestern Ontario. The general trend of the economy of the region has been one of decline,
and closure by a significant employer will have important consequences for the economy and
population of the region. In the absence of employment opportunities, young members of the
local communities tend to relocate elsewhere.
Strategies for economic diversification and development will have to be adopted by municipal
and regional governments; in addition, worker retraining and transition strategies must be
developed. Since the transition to closure will be well known to employees thus enabling them
to adapt to this change it is expected that the effects of this transition will be negative, of low
magnitude and of short duration
4.2.3.2. Government Revenues
Closure of the mine will result in a reduction in government revenue. For this phase, federal
revenues will range from 3.3 to 4.3 million dollars; provincial from 3.5 to 4.7 million; and local
from 751 thousand to 1.0 million dollars.
The loss of revenue implies that governments may not be able to continue to invest in
improvements/upgrades or maintenance of some of the community infrastructure. It is
expected that the effects of this transition will be negative, of low magnitude and of short
duration
4.2.3.3. Economic and Business Development
The majority of economic and business development activities are forecasted to occur during the site preparation and construction and operation phases of the Project. There is the potential for additional economic and business development projects to address the specific needs of the Closure phase.
5. Summary and Proposed Mitigations In addition to the following sections summarizing predicted or potential social and economic effects,
summary Tables 5.4.1, 5.4.2 and 5.4.3 below contain an overall assessment of the Projects potential
effects on the socioeconomic conditions.
82
5.1. Summary of Predicted/Potential Social Effects
The following likely effects on the social environment are associated with the Project in the
absence of mitigation:
upward pressure on house prices and residential rents, reduction in supply and
potentially affordability of local housing, and increased demand for hotel/motel
accommodations. These effects will be felt during the site preparation and construction
and operations phases of the Project;
reduced demand for housing and downward pressure on home prices during mine
closure;
increased demand for community services during the site preparation and construction
and operations phases of the Project. Conversely, a reduced demand at mine closure for
community services may see some program cancellation;
increased demand for health services during the site preparation and construction and
operations phases of the Project. Conversely, a reduced demand at mine closure for
health services may see some downsizing;
increased demand for emergency services during the site preparation and construction
and operations phases of the Project. Conversely, a reduced demand at mine closure for
emergency services may see some downsizing; and,
increased traffic volumes associated with the Hwy 17-Peninsula Road intersection and in
the Town of Marathon during the site preparation and construction and operations
phases of the Project.
there will be a population influx into Marathon and possibly some of the surrounding
communities resulting from workers moving to the area;
there is the potential that workers moving into the local communities will become part
of and/or support local community groups and therefore contribute to them;
there will be increased training opportunities during the site preparation and
construction and operations phases of the Project for youth and Aboriginal peoples, as
well as opportunities for skilled workers to further hone and/or diversify their skills to
enhance their employability;
5.2. Mitigation of Predicated/Potential Social Effects
As it pertains to local demographics increased population in the area is seen as a positive effect.
To deal with the influx of workers associated with the site preparation and construction phase
mitigation strategies include facilitating rotational work arrangements, encouraging former
residents to return to the area and providing employee accommodations through company
owned accommodations and local motels. During the operations phase SCI will encourage
operations employees and families to gradually settle in local communities, support commuting
83
from local communities and recruit employees from the existing populations in local
communities.
In relation to housing, proposed mitigation strategies to deal with the increased housing
demand associated with the site preparation and construction phase are the same as those
described above. SCI will facilitate rotational work arrangements, encourage former residents
of the area to return to seek work opportunities and provide employee accommodations
through company owned accommodations and local motels. During operations in consideration
of upward pressure on house prices and residential rents and a reduction in housing supply and
potentially affordability SCI will use an Accommodations Complex to house Project workers.
Additional capacity for workers will be provided in SCI-owned motels in Marathon.
Opportunities for training as the result of the implementation of the Project are seen as a
positive effect. SCI will enhance this effect by encouraging and supporting initiatives to train
local youth, Aboriginal peoples and displaced forestry sector workers for employment in the
Project.
SCI will proactively engage with municipal authorities to coordinate planning of infrastructure
development or upgrades that may be needed to ensure that they do not negatively affect the
local communities.
To relieve the potential stress of the Project on community services during site preparation and
construction and operations SCI will provide support to fund key community services or
organizations and provide fitness and recreational programs for workers within the existing
facilities. During the closure phase some of the community services or organizations that
received support or some of the programs that were implemented earlier in the Project’s life
may be cancelled. To help to ease this transition, SCI will maintain ongoing communication with
local residents of Project developments and timetables.
To relieve the potential stress of the Project on health and emergency services SCI will provide
its employees with some level of health services. There will be on-site emergency service
infrastructure such as fire-fighting equipment. SCI will co-ordinate its Emergency Preparedness
Plan with the Town of Marathon emergency services department.
As it pertains to mitigating potential effects associated with increased traffic during site
preparation and construction and operations SCI will encourage car-pooling by its workers and
provide bus transport to the Project site and require all project drivers and employees to
observe speed limits and take safety precautions. In addition SCI will conduct scheduling shift
changes as consultation with the Town of Marathon at off peak traffic hours and schedule
concentrate truck transport off the Project site so they do not coincide with school bus pick-up
and drop-off times.
84
5.3. Summary of Predicted/Potential Economic Effects
The Project is not expected to result in adverse effects on the economic environment, though
Project-related economic benefits have a finite life-span. The likely positive effects of the
Project on the economic factor VECs include:
increased direct, indirect and induced employment opportunities during all Project phases;
increased labour incomes in local communities;
increased in economic and business opportunities particularly in the site preparation and
construction and operations phases; and,
increased absolute government revenues (taxes, royalties) for all levels of government
during all Project phases.
As indicated above, Project-related economic benefits have a finite life-span so consideration of
potentially adverse effects is warranted specifically:
reduction in levels of employment at mine closure; and,
reduction in government revenues at mine closure.
5.4. Mitigation of Predicted/Potential Economic Effects
For positive effects no mitigation is necessary but measures to enhance positive effects can be
implemented. As it pertains to employment, SCI will encourage the training and recruitment of
local and regional (including Aboriginal) workers both within its own workforce and within the
workforce of its contractors. As it relates to economic and business opportunities SCI will
encourage the purchase of goods and services that are competitively priced from local and
regional (including Aboriginal) suppliers.
To help its workforce transition into other opportunities SCI will implement employment
transition programs that enable workers to identify opportunities to use their transferable skills
and seek other employment. In addition, SCI will maintain ongoing communication to inform
local residents of project developments and timetables.
6. Cumulative Effects
The Environmental Impact Statement Main Report (EcoMetrix 2012 ) Table 6.6-1 lists a number
of identified current and future projects and activity in the region, as well as some of their
anticipated effects on VECs. The list of projects includes mining exploration and production,
hydroelectric facilities developments, highway improvements, transmission lines, and a regional
waste management system. These projects were deemed not to have considerable effects on
socioeconomic VECs.
85
In recent years, economic conditions in the forest sector (a key economic sector in
Northwestern Ontario) have been unfavourable – resulting in the closure of several mills and
other operations. These developments have led to high rates of unemployment, population
decline, reductions in the tax base of municipalities, and a general slowdown in economic
activity. The region has been experiencing negative population growth. The socioeconomic
context in which the Project is to be developed is at the present time characterized by regional
economic and demographic decline and regional challenges to economic development.
Mining activity continues in the region, with expansion and continued production taking place
at the Hemlo gold mine operated by Barrick – generating local employment for residents of
Marathon, Manitouwadge, White River, and the Pic Mobert and Pic River First Nations. Pic
River First Nation has been involved in the development of run of the river hydroelectric
generating stations.
In the light of current and foreseeable economic conditions – and an effective contraction due
to the decline of the forest sector – in the region, the Project will offset some of the negative
growth that has been taking place. At the local level (e.g., in the Town of Marathon), the Project
may interact with developments at the Hemlo gold mine and result in steady demand for mine
workers and relevant services – contributing to demand for housing, infrastructure, and
community services. However, in the light of the losses in economic activity and population
experienced in the region in recent years, the combined effects of the Project and other known
developments will be relatively modest at the regional level and are not likely to create
significant cumulative stress for local and regional socioeconomic resources.
86
Table 5.4 1 Summary of Potential Socioeconomic Effects of Marathon PGM – Cu Project (Site Preparation and Construction)
Potential
Effects
VEC
(from Table 2)
Direction Extent Magnitude Duration Probability Confidence
Level
Mitigation
measure
Significance
Increase in
employment
opportunities
(positions
created by the
Project as
well as
indirect and
induced
employment
effects)
Employment
and Income
Positive Local
and
Regional
High Short Highly
Probable
High Encourage the
hiring of local
and regional
(including
Aboriginal)
workers – by
both SCI and
contractors
High
Increase in
business
opportunities
Economic and
business
development
Positive Local
and
Regional
High Medium Highly
Probable
High Encourage
purchase of
goods and
services that are
competitively
priced from local
and regional
(including
Aboriginal)
suppliers
High
Increase in
incomes (i.e.,
labour
income)
Employment
and Income
Positive Local
and
regional
High Short Highly
Probable
High Not required High
Increase in
government
revenue
(taxes,
royalties)
Government
Revenue
Positive Local
Regional
and
National
Medium Short Highly
Probable
High Not required Medium
Demographic
s – population
influx
(construction
workers)
Demographics Negative Local to
regional
Low Short Probable Medium Facilitate
rotational
arrangements;
encourage
former residents
to return;
provide
accommodations
through
company owned
accommodations
and local motels
Low
Increase in
vehicle traffic
volume
(TransCanad
a Highway
and Peninsula
Road)
Traffic Negative Local low Short Probable High Encourage car-
pooling and
provide bus
transport to site.
Require all
project drivers
and employees
to observe speed
limits and take
safety
precautions.
Low
87
Potential
Effects
VEC
(from Table 2)
Direction Extent Magnitude Duration Probability Confidence
Level
Mitigation
measure
Significance
Housing and
Accommodati
ons – upward
pressure on
house prices
and
residential
rents;
reduction in
supply (and
affordability)
of local
housing;
increased
demand for
hotel/motel
accommodati
ons
Housing Negative
and
Positive
Local Low Short to Probable Medium Facilitate
rotational
arrangements;
encourage
former residents
to return;
provide
accommodation
through local
motels
Low
Increase in
demand for
community
infrastructure
Infrastructure Negative
or
Neutral
Local Low Short Probable High Proactively
engage with
municipal
authorities to
coordinate
planning of
infrastructure
development or
upgrades
Low
Increase in
demand for
community
services
Community
Services &
education
Negative Local Low Short Probable Medium Provide fitness
and recreational
programs for
workers, both on
and potentially
off site.
Low
Increase in
demand for
health
services
Health services Negative Local Low Short Highly
Probable
High Provide health
and safety
policy, training
(e.g. first aid),
awareness and
other programs
on site such as
the employee
assistance
program.
Low
Increase in
demand for
emergency
and protective
services
Emergency
services
Negative Local Low Short Highly
Probable
High Engage private
fire protection
and security
personnel on site
as wells as
participate with
municipal
services for
emergency fire
protection.
Low
88
Potential
Effects
VEC
(from Table 2)
Direction Extent Magnitude Duration Probability Confidence
Level
Mitigation
measure
Significance
Increase in
training
opportunities
(for youth,
Aboriginal
and/or
displaced
forestry
sector
workers)
Workforce
training and
skills
development
Positive Local
and
Regional
Medium Short Probable High Encourage and
support
initiatives to
train youth,
Aboriginal, or
displaced
forestry sector
workers for
employment in
the Project- by
both SCI and
contractors
Medium
Table 5.4 2 Summary of Potential Socioeconomic Effects of Marathon PGM – Cu Project (Operations)
Potential
Effects
VEC from
Table 2
Direction Extent Magnitude Duration Probability Confidence
Level
Mitigation
measure
Significance
Increase in
employment
opportunities
(positions
created by the
Project as well
as indirect and
induced
employment
effects)
Employment
& income
Positive Local and
Regional
High Medium Highly
Probable
High Encourage the
training and
recruitment of
local and
regional
(including
Aboriginal)
workers – by
SCI and
contractors
High
Increase in
business
opportunities
Economic &
business
development
Positive Local and
Regional
High Medium Highly
Probable
High Encourage
purchase of
goods and
services that are
competitively
priced from
local and
regional
(including
Aboriginal)
suppliers
High
Increase in tax
revenue
Government
revenue
Positive Local,
Regional
and
National
High Medium Highly
Probable
High Not required High
89
Potential
Effects
VEC from
Table 2
Direction Extent Magnitude Duration Probability Confidence
Level
Mitigation
measure
Significance
Demographics
– population
influx
(operations
workers
settling in local
area)
Demographics Positive
and
Negative
Local Low Medium to
Permanent
Probable High Encourage
operations
employees and
families to
gradually settle
in local
communities
Support
commuting from
local
communities
Recruit from
local
communities
Low
Increase in
vehicle traffic
volume
(TransCanada
Highway and
Peninsula
Road)
Traffic Negative Local Medium Medium Highly
Probable
High Encourage car-
pooling and
provide bus
transport to site.
Require all
project drivers
and employees
to observe speed
limits and take
safety
precautions.
Schedule shift
changes at off
peak traffic
hours.
Schedule
concentrate
trucks at off
school bus
times.
Low
Housing –
upward
pressure on
house prices
and residential
rents;
reduction in
supply (and
affordability)
of local
housing
Housing Negative Local Low Short to
Medium
Probable Medium Construction of
an
accommodation
complex to
house Project
workers
Low
Increase in
demand for
hotel/motel
accommodatio
ns – continuous
use of
hotels/motels
to capacity
may have
detrimental
effects for
tourism or
other sectors
Housing Negative
and
Positive
Local Low Short to
Medium
Probable Medium Construction of
an
accommodations
complex to
house Project
Workers
Low
Increase in
demand for
community
infrastructure
Infrastructure Negative
or
Neutral
Local Low Medium to
Permanent
Probable High Proactively
engage with
municipal
authorities to
Low
90
Potential
Effects
VEC from
Table 2
Direction Extent Magnitude Duration Probability Confidence
Level
Mitigation
measure
Significance
coordinate
planning of
infrastructure
development or
upgrades
Increase in
demand for
community
services
Community
services and
education
Negative
and
Positive
Local Low Medium Probable Medium Provide fitness
and recreation
programs for
workers, both on
and potentially
off site.
Help fund
community
services or
organizations.
Low
Increase in
demand for
health services
Health
services
Negative Local Low Medium Highly
Probable
High Provide health
and safety
policy, training
(e.g. first aid)
awareness and
other programs
on site such as
the employee
assistance
program.
Low
Increase in
demand for
emergency and
protective
services
Emergency
services
Negative Local Low Medium Highly
Probable
High Engage private
fire protection
and security
personnel on site
as wells as
participate with
municipal
services for
emergency and
fire protection.
Low
Increase in
training
opportunities
(for youth,
Aboriginal
and/or
displaced
forestry sector
workers)
Workforce
training and
skills
development
Positive Local and
Regional
High Medium Probable High Encourage and
support
initiatives to
train youth,
Aboriginal, or
displaced
forestry sector
workers for
employment in
the Project
Medium
Increase in
opportunities
for economic
development
and
diversification
Employment
& income
Economic and
business
development
Positive Local and
Regional
Medium Medium to
Long
Probable Medium Participate in (or
assist with) the
development of
local and
regional
economic
development
strategies that
build on
opportunities to
leverage Project
opportunities
Medium
91
Table 5.4 3 Summary of Potential Socioeconomic Effects of Marathon PGM – Cu Project (Closure) Potential
Effects
VEC from
Table 2
Direction Extent Magnitude Duration Probability Confidence
Level
Suggested
Mitigation
Significance
Reduction in
Levels of
Employment
Employment
and income
Negative Local and
Regional
Low to
Medium
Permanent Highly
Probable
High Implement
employment
transition
programs that
enable
workers to
identify
opportunities
to use their
transferable
skills and
seek other
employment.
Low
Reduction in
government
revenues
Government
revenue
Negative Local
Regional
and
National
Medium Permanent Highly
Probable
High Maintain
ongoing
communicati
on to inform
local
residents of
project
developments
Low
Reduced
demand for
community
services
Community
services &
education
Positive
and
Negative
Local Low Permanent Probable Medium Maintain
ongoing
communicati
on to inform
local
residents of
project
developments
Low
Reduced
demand for
housing
Housing Positive
and
Negative
Local Low Permanent Probable Medium Maintain
ongoing
communicati
on to inform
local
residents of
project
developments
Low
Change in
residential
property
values
Housing Positive
and
Negative
Local Low Permanent Probable Medium Maintain
ongoing
communicati
on to inform
local
residents of
project
developments
Low
92
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