The world's second-largest gold producer committed $14 billion to Ontario days after a worker died at its Upper Beaver project
A Canadian miner is betting big on Ontario gold just as one of its flagship projects faces a fatality investigation.
Agnico Eagle Mines Ltd., the world's second-largest gold producer, committed $14bn to its Ontario mining portfolio by the end of 2030, the provincial government announced Wednesday.
The Financial Post reported that this is one of the largest private-sector investments in the province's modern history.
The Ontario government said the Toronto-based company will direct approximately $12bn across its operating, development and exploration assets in Ontario, supporting a workforce of more than 4,100.
An additional $2bn will target two specific projects: the Detour Lake underground expansion and the Upper Beaver gold-copper project, with both expected to create up to 1,600 jobs and add nearly $5bn to Ontario's GDP.
“Ontario is central to our long-term growth strategy,” Agnico president and chief executive Ammar Al-Joundi said in a release, adding that the company sees a “meaningful opportunity” to advance its project pipeline.
According to the Financial Post, Agnico plans to invest approximately $1bn to add an underground operation beneath Detour Lake's existing open pit, 185 kilometres northeast of Cochrane.
Canada's largest gold mine — which produced 692,715 ounces last year at an all-in sustaining cost of US$879 per ounce — would see annual output climb to over one million ounces, extending its mine life to 2054 and creating 800 jobs, the Ontario government said.
Gold is currently trading at US$4,708 per ounce, down from an all-time high above US$5,589 in January.
The Ontario government said Agnico also plans to spend more than $1bn redeveloping Upper Beaver, near Kirkland Lake, into a modern underground and open-pit gold-copper operation with an expected annual output of 210,000 ounces of gold and 3,600 tonnes of copper over a 14-year mine life.
The project, however, is under scrutiny after an employee died on the job on May 1, CTV News reported.
The Ministry of Labour confirmed to the outlet that two inspectors attended the scene and an investigation is ongoing; the Ontario Provincial Police said it is assisting.
“On behalf of the entire Agnico Eagle team, we extend our deepest condolences to the family, friends, and co-workers of our colleague,” the company said.
Energy and Mines Minister Stephen Lecce credited Ontario's new One Project, One Process permitting framework for attracting the investment, according to the provincial government.
The province also announced further red tape reductions for exploration approvals and mine expansion timelines.
