Ontario has collected about 1.5% in royalties on the billions of dollars worth of ore extracted in the province over the past decade, but critics say that's not enough for the loss of non-renewable resources, according to media reports.
In Ontario, companies pay a mining profits tax on precious and base metals. When the company makes money, it's supposed to pay this so-called royalty.
Critics say precious and base metals are Crown assets and that the province should get the best deal possible as compensation for the loss of non-renewable natural resources. But the mining industry and government officials argue that mining is a uniquely expensive enterprise and that focusing on royalties distorts the big picture.
The province's overall mining regulations are fair, says Ontario Mines Minister Michael Gravelle. He argues the province is doing well attracting new investments for exploration and the level of the mining tax is not a priority.
Figures from Statistics Canada show that direct employment in the mining sector accounts for less than 0.5% of Ontario's overall job picture, compared to 11% in manufacturing.
Another comparison shows that for the last five years, the City of Toronto collected as much in annual parking fines as the province did from more than a dozen gold and nickel companies.
In 2008, with record gold prices, the province received just over $231 million in royalties, the highest payment in 12 years of examined data. In 2014, the province's take dropped to $11 million. Media reports revealed that the province refunded money to several companies last year.
The reasons for the refund are unclear.
The low rate is not disputed by the industry. Chris Hodgson, the head of the Ontario Mining Association and a former Progressive Conservative MPP who served as minister of both Northern Development and Natural Resources, says the money collected from the mining tax isn't a make it or break it situation for Ontario's coffers.
