This paper presents an analysis of the economic potential of Ontario’s Ring of Fire, the mineral resource-rich area of approximately 5,120 km2 located in the James Bay Lowlands region of Northern Ontario. Our analysis shows that the Ring of Fire is an unparalleled opportunity for the province to diversify its economy and solidify its place as a global leader in mining and mining technology.
Our analysis shows that within the first 10 years of its development, the Ring of Fire will make significant contributions to Ontario’s economy, and will:
generate up to $9.4 billion in Gross Domestic Product (GDP);
generate up to $6.2 billion for Ontario’s mining industry;
sustain up to 5,500 jobs annually (full time equivalents); and
generate nearly $2 billion in government revenue, divided between the federal, provincial, and municipal governments.
We find that within the first 32 years of its development, the Ring of Fire will generate more than $25 billion in economic activity across numerous sectors in Ontario, of which mining is just one. During this period, the Ring of Fire will generate:
$2.7 billion in revenues for the financial services sector;
$1.2 billion for the wholesale and retail trade sectors;
$600 million for the manufacturing sector; and
$500 million for utilities sector.
The Ring of Fire will also generate an estimated $6.7 billion in government tax revenues over the first 32 years of its development, providing a compelling incentive for governments to invest in this economic opportunity.