City of Greater Sudbury Mayor Marianne Matichuk State of the City Address

June 21, 2012 Caruso Club

Check Against Delivery

Good afternoon everyone. Bonjour tout le monde. This certainly has been an amazing few weeks in the mining capital of Canada with great investment news and scientific celebration. Recently, in the span of about ten days we had the Cliffs decision to locate a $1.8 billion chromite smelter in our city, the official opening of the internationally renowned SNOLAB research facility, and a provincial government announcement that Sudbury has been approved for a casino that may be built downtown, further contributing to the centres renewal. But first, I would like to start off with an amazing number: $6.3 Billion! That is the current value of mining investment, confirmed or planned for Sudbury, over the next five years or so. This only includes capital projects by Vale, Cliffs, KGHM and Xstrata Nickel.
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That six billion dollars does not include potential investments by the growing supply and service sector, government and many other non-mining activities that will tap into these enormous projects. I cant think of a better time to be Mayor of this great city. It doesnt get any better than this! Theres an incredible sense of energy and prosperity in the air. We all feel it. The restaurants are full. The vacancy rates are low. Housing prices are going up. At no additional cost, the city has hired three more people in its planning department to handle all the new building applications. In 2011, the total value of residential construction was $127.5 million, compared to $76.7 million in 2010. Thats a 66per cent increase. Sudbury is an island of prosperity in a world of economic uncertainty!

In a May 1st speech, Bank of Canada Governor Mark Carney said that commodity prices are likely to remain high for longer than previous booms. He added that Canada is well positioned in this commodity super cycle. Sudbury is the epicenter of Canadas hard-rock mining sector. Laurentian economics professor David Robinson recently stated that in the 25 years of living in Sudbury, he has never been more optimistic about the local economy and jobs. Without a doubt Sudbury is booming! And no one in this entire country can begrudge our community its moment in the sun. No, I should really say our decade or two in the sun! Over the past few decades, Sudbury faced many challenges due to lower global demand for nickel and mining productivity improvements that needed fewer workers. We hunkered down and worked damn hard to attract new opportunities.

The Ministry of Northern Development and Mines, the Geological Survey of Ontario and the Canada Revenue Agency came to Sudbury, providing stable and well-paying government jobs. We built a modern hospital and created a new medical school jointly with Thunder Bay. As a result, we are attracting specialists and are seeing medical research conducted on an ongoing basis. Sudbury established a third post-secondary institute, Collge Boral and along with Cambrian and Laurentian has become a thriving education centre. Science North, Dynamic Earth and the Theatre Centre were built. We also attracted many big box stores and ultimately have become a tourist destination. Sudbury has made tremendous strides and succeeded in diversifying the local economy away from the mining sector. This is due to participation of community builders like you, in this room, who are always looking towards the future.

But, by the middle of last decade, there were dramatic changes around the globe. The world saw Sudburys mineral wealth in a new light. And the community needed to refocus and strategically build on our mining roots which have always been there boom or bust for almost 130 years. That global seismic change could be summed up in one word: China! A country of about 1.3 billion people almost 20 per cent of the planets population has been modernizing and industrializing at an incredibly rapid pace. It has been often stated that China needs to build two cities the size of Toronto and Sydney, Australia every year. They are experiencing the largest rural to urban human migration in the history of mankind. India, Brazil, Turkey, Indonesia, Mexico, Vietnam and many other developing countries are also developing their economies but at a slower pace. Regardless of the current economic uncertainty, the minerals that we dig out of the ground are needed in a
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resource-starved world. In that world, a resource rich community like Greater Sudbury is rare. Lets start with the most recent announcement that I am really excited about. Cliffs Natural Resources plans to build a $1.8 billion-dollar chromite smelter near Capreol, at the former Moose Mountain Mine site. Last September, I led a group of community leaders to Cleveland to meet with Cliffs officials and highlighted Sudburys many advantages including rail access, power supply, a skilled workforce and our long history of mining. As you all know we were successful in closing the deal for this vital investment in our future. The smelter will require about 450 people to build the facility and provide about 450 good paying multi-generational jobs. And speaking of multi-generational jobs, lets remember that the Vale Copper Cliff smelter was built in 1930. There is an incredible amount of history connected with that facility. It played a vital role in World War Two when Sudbury was the source of almost 95 percent of allies nickel which was
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critical for military production. Every tank, plane, aircraft carrier, and other military hardware contained some of our nickel. Vale is spending $2 billion for pollution controls to further reduce sulphur dioxide emissions by 70 percent over current levels. During my previous employment there as a safety supervisor, I became very familiar with the smelter operations. I think we all remember the days of sore throats and coughing when the wind blew the sulphur emissions towards town from the old Inco smokestacks. The CLEAN AER Project, is the most significant environmental investment in the history of Ontario, if not the entire country. Vale is also spending $760 million to complete Totten mine, the first new Vale mine in Sudbury in almost 40 years. It has also progressed to the pre-feasibility stage on the VictorCapre deposit near the airport.

In total, Vale is spending $3.5 billion on these and other projects: a resounding long-term financial commitment to this community! KGHM the former Quadra/FNX is spending $750 million to bring its Victoria deposit into production. This mine which is located in the east side of the basin, near Totten mine, is one of the most significant discoveries in the past four decades due to its high copper and precious grade metals. And last but not least, Xstrata Nickel which is spending $119 million on the Fraser Morgan deposit that will extend the mine life of the Fraser Complex by five years to 2025 and investing an estimated $200 million at its Sudbury smelter for environmental improvements which is currently in the feasibility stage. In addition, we must not forget the companys $920-million dollar Nickel Rim South project, completed in 2010. This was the first new mine in the Sudbury Basin in thirty years. That project also included a $100-million expansion of its Strathcona Mill. Together, they were an early sign of the investment bonanza to come.
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In total, Sudbury is experiencing $6.3 billion of confirmed and planned mining investment.

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Without a doubt, we are the richest mining district in North America and are among the top four hard-rock mining regions in the world. In 2011, the value of mineral production in Ontario, Canadas chief producer was $10.7 billion. Forty percent of that activity happens in the Sudbury basin. But we have three other mining related sectors or clusters that position Sudbury as a global centre of mineral expertise. A fair portion of that $6 billion will filter into the local/regional mining supply and service sector. There are more jobs in the supply and services hard-rock mining cluster the largest concentration in Canada and possibly North America than in the mines. The sector employs about 13,800 people in Sudbury with an economic value estimated at $4 billion in 2011. Throughout northern Ontario, the supply and service sector employs about 23,000 and produced roughly $5.6 billion of economic activity last year, based on a recent study.

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SAMSSA Executive Director Dick DeStefano estimates that about $1.1 billion is spent by the local big miners on routine supply and services for their annual operations. Local companies like Penguin Automated Systems, Symboticware, Four Leaf Solutions and Mining Technologies Inc., just to mention a few, are not only supplying local miners, but exporting their innovative products and knowledge around the world. Mining in the 21st century is increasingly technology driven. That is clearly shown by the enormous amount of mineral sector research taking place in Sudbury. In fact, it would not surprise me if more underground mining research takes place in Sudbury than anywhere else in Canada. Institutions like CEMI, NORCAT, MIRARCO, CAMIRO and the federal governments Canmet facilities are helping turn Sudbury into Canadas Silicon Valley of hard-rock mining. In addition, Xstrata operates a world-class Technology Centre in Falconbridge.

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And at the Copper Cliff Mine 114 Orebody Demonstration Plant, Vale conducts extensive research, including the innovative Rail-Veyor technology. We also must remember that our citys expertise in environmental restoration, is internationally recognized and that the Vale Living With Lakes Centre, is a global centre of excellence for freshwater protection and restoration. Furthermore, over the past few decades, we planted 9.2 million trees, transforming our sulfur-damaged moonscape into a reforested vista of green. I am currently in conversation with our CAO Doug Nadorozny in regards to a UNESCO application, to make the citys old roasting beds a world-heritage site, based on our re-greening efforts. This abundance of local mining expertise is of enormous benefit to students at Laurentian, Cambrian and Collge Boral who intend to enter the mineral sector.

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Sudbury has one of the largest clusters of post-secondary mining education in the country. The graduating engineers, geologists, technicians and other skilled trades will find promising futures as many experts are predicting labour shortages due to retirements and increased global mineral demand. And we must not forget the internationally recognized SNOLAB research facility the deepest and cleanest on the planet located two kilometres underground at Vales Creighton mine. Scientists from across Canada and around the world focus on pure astrophysics research that sometimes results in technology with real-world applications like GPS devices, PET scanners and MRIs. We should all be proud of this innovative and globally unique institute. With a booming resource economy, I cant think of a better time to focus on the renewal of our downtown. I can still recall when going downtown with my family, was an exciting event. I am very proud that council endorsed the
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Greater Sudbury Downtown Master Plan and Action Strategy. I know there has been some concern about who will pay for many of these proposed projects. However, lets remember that this is a visionary document that will help guide the physical and cultural evolution of the central core during the next thirty years. The plan will also provide a solid basis for new private sector and government investments. Although it was in the works before the plan, the new Laurentian School of Architecture is a tremendous milestone and a great starting point in the transformation of downtown. The institute will be the first new school of architecture in Canada in 40 years and is the only bilingual one outside of Quebec. The school is scheduled to open at the Market Square site in September 2013 with 60-70 first-year students and will eventually be able to accommodate 400, as well as 30 staff and teachers.
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A similar project in Brantford, Ontario, where a number of post-secondary institutions offer programs mostly in the downtown academic district, proved very successful. The resulting influx of students studying and socializing in Brantfords downtown has had a positive impact on local businesses and generated new private sector investment. As we move forward with the Action Strategy, we will focus on the 25 low to no cost action items such as continuing to work on the renewal of Market Square. continuing discussions with Cambrian College about how we can help grow its downtown presence, and continue our discussions with CP Rail around the best use of their downtown properties. Moving forward, I am focusing on the rail lands Innovation and Technology Park and the Multi-Use Conference Centre. The Inno-Tech Park initiative has the potential to ensure more people working in the downtown area by redeveloping about five acres of rail land bordering Elm, Elgin and Lorne Streets.
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This project could also leverage significant private sector involvement as there are businesses looking for new space in the downtown core that is suitable for their needs. We are currently working with stakeholders on this initiative. The time for a downtown Multi-Use Conference Centre may be closer due to the recent decision by the Ontario Lottery and Gaming Corporation to sever a revenue sharing agreement with slots and race tracks. OLG has requested information from private sector operators on how they would build and operate modern casinos. Sudbury has been approved for 600 slot machines and there has been much discussion of a casino located in our downtown. Council passed a motion that we are in support of the gaming industry and its revenue in this community. This is a tremendous opportunity to move forward with the Downtown Master Plan with government participation and private sector money. Stay tuned.

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Sudbury has an affinity for movies. Since 1989, Cinefest Sudbury International Film Festival has been thrilling local audiences with a wide variety of choices featuring the best in Canadian and International cinema. Not only are we excited about watching films, increasingly, Sudbury is also the location for film, television and animation production. It is interesting to note that Collge Boral offers programs that train people in production skills such as sound, lighting and set design. In the past year several important film projects were shot in Sudbury including The Truth, A Little Bit Zombie, Chasing Iris, The Lesser Blessed and TFOs popular series, Les Blues de Ramville. So when a local entrepreneur approached me with his plan for a Sudbury production studio, I was pleased to help make this happen. David Anselmo and his backers are now turning the former Barrydowne Arena into northern Ontarios first film studio and, along with other producers, aim to turn Greater
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Sudbury into a regional production hub, another economic engine. Film production generates lots of business. For example, the movie The Truth resulted in nearly $four million in economic spinoffs in just a few weeks. The Northern Ontario Film Studio will allow Greater Sudbury to capture a larger share of provincial film production. In 2011, the value of film production was worth $2.4 billion to the Ontario economy. And lets be honest, having Hollywood actors like Andy Garcia, Eva Longoria and Forrest Whitaker working in Sudbury gives an enormous boost to our national image. As you may have read in the paper, the still very handsome Jason Priestley of Beverly Hills 90210 fame was in Greater Sudbury. As it happens, I was meeting with Mississauga Mayor, Hazel McCallion.I think that was a deliberate set up, and my lucky staff met with Priestley instead.although I did get to meet Andy Garcia. Sudbury is definitely getting ready for its Hollywood close-up!

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Without a doubt, Sudbury is booming. However, the previously mentioned shortage of skilled workers is becoming a major problem for industries. In a globalized world, competition for these skilled professionals is fierce. The world is their oyster and they can go anywhere. As a member of the GSDC Board of Directors we are working with the Chamber to assist in developing an action plan to get these people here. Surprisingly, the old stereotypical ideas of Sudbury still exist much to our chagrin. One of councils top priorities is to change our image. I am delighted the current issue of Ontario Summer Magazine, which is distributed across the province features, on the cover, a photo of a mother and her children on the boardwalk in front of Science North. Yet how many times do we continue to hear of people who are shocked or surprised at how much this community has changed since the 1970s? We all need to play a role in promoting Greater Sudbury as the vibrant, progressive and confident community we know it to be.
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The city is working to improve communications and marketing to better tell the Sudbury Story. We have completely redesigned our tourism section of our website. Our other economic development pages are being redeveloped for launch later this year. Our role is to sell this city to potential investors, but just as importantly to potential new residents. We need to enlist the entire community to become our Ambassadors when they travel outside the city. Thats just, good, public relations.

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With many retirements and ensuing shortages of skilled labour, our future growth and prosperity depends on the image we project. Fortunately, we live in one of the most dynamic and beautiful cities in Canada with hundreds of lakes. We have to seize these opportunities and make a plan for the future. Once we get them up here for a visit, the rest is easy. We have ALMOST six and half billion reasons why they should stay!

Thank you, Merci.

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