Northeastern Ontario glitters with record gold prices and municipal leaders see lots of pluses

Record-high gold prices are welcome news for mining operations in northeastern Ontario as the metal continues to surge in the market.

Gold prices topped $2,400 US an ounce last week, a 20 per cent increase from the same time in 2023. 

Some mayors from northeastern communities say the gold rush has helped local economies.

"It's been excellent for the community," said Mark Stickel, mayor of Matachewan, home of the Young-Davidson mine located 60 kilometres west of Kirkland. 

He said there was a demand for housing among both local workers employed by the mine and those commuting from other communities, which also extended to rental properties.

The community's small businesses, such as restaurants and stores, also felt the demand, Stickel said.

"The generation of income became very substantial to us," he said.

Ripple effect on business

In Timmins, there's increased investment in exploration activities due to the rise in gold prices, said Mayor Michelle Boileau, especially after the opening of the Côté Gold mine near Gogma, halfway between Sudbury and Timmins.

The mine is expected to produce about 440,000 ounces of gold annually over the next 18 years.

"There's a ripple effect in the mining supply and service industry here within the city. So more people are at work and it's just positive all around," Boileau said.

"When the mines in the area are doing well, it's visible within the community." 

The town of Dubreuilville, east of Wawa, has a population of only 600, but there are almost twice as many people who work at Alamos Gold's Island Gold mine. 

Mayor Beverly Nantel said while the town doesn't see any direct revenue from the gold mines, they serve as a vital community partner to help build local projects, including the town's new landfill site.

"Direct compensation from the gold mines, it's not there," Nantel said. "But they did help build our new landfill site because the waste that we were getting from two mines had caused the closure of our existing landfill.

"They were generous enough that they did help with the construction of it," she said.