Kirkland Lake - Economy

Economy

The top employers of locals are (As of 2009):

The town went through a period of economic decline towards the end of the last century, with the closing of the original mines. That ended in 2001, when Foxpoint Resources (now Kirkland Lake Gold Inc. or KLG) bought five of the mining claims in the town and began intensive exploration work. KLG successfully resuscitated the local mining scene, finding new zones of mineralization that, combined with the steadily increasing price of gold, turned the town around. Today, Kirkland Lake is probably one of the most successful communities of its size in Northern Ontario. Some of the more recent developments include:

• Kirkland Lake Gold Ltd. continues to expand its operations. Since December 2002, the company’s confirmed gold reserves have increased by 160% to 2,022,000 tons with an average grade of 0.46 ounces per ton containing a total of 927,000 ounces of gold. In 2003, the Company started a $21 million, 3 year exploration program targeted at adding an additional 15,000,000 tons of ore to reserves and resources. Currently, over 500 personnel are directly or indirectly employed at the mine site. Based on today’s resources, the mine has a 12-15 year life span. A recently announced $16 million expansion in its exploration activities is already paying dividends. The mine recently announced the discovery of the richest ore veins ever found in the history of the Kirkland Lake camp, a move which will significantly increase the mine’s life span.

• While the forestry industry has been hard hit across Canada, the impact on Kirkland Lake has been mitigated by the conversion of the existing Tembec Forest Products Group's Kenogami sawmill into a value-added centre for the manufacturing of finger-jointed lumber. The new centre, located on the outskirts of KL, opened in July 2006. It will employ between 70 and 92 workers. Under an innovative Public-Private partnership, the municipality is working with Rosko Forestry Operations to establish a specialty sawmill in the Archer Drive Industrial Park that will sell into the Canadian market.

• The local tourism industry has provided a much needed depth to the local economy. Star attractions include the Museum of Northern History at the Sir Harry Oakes Chateau, the Miners' Memorial, and Hockey Heritage North (an 18,000-square-foot (1,700 m2) interactive facility telling the story of hockey in the north). Upcoming attractions include a refurbishment of the historical Toburn Headframe. Event based tourism is also strong. Some of the most popular draws include a drag racing event in the summer and a national snow cross racing event in the winter.

• Prospects for an expansion of the Town’s white-collar workforce are excellent. Two new high schools as well as a long-term care facility, and a new medical centre promise to make the community more attractive to professionals in the fields of medicine and education. Veterans Affairs Canada is also growing its client service operations. The local office is now the primary service bureau for over 100,000 clients across central and eastern Canada.

These good news stories are supplemented by a number of developments occurring regionally that will have a positive impact because KL is the economic hub of the north Timiskaming District, and so the primary supplier of products, people and services to regional activities. For example:

• The steady increase in the price of gold has brought a number of other mining projects to the feasibility stage. Queenston Mining Inc. announced promising results at its Upper Beaver Properties. Northgate Minerals has poured over $20 million into exploration work and is moving ahead with mining operations at its Young-Davidson properties near Matachewan. According to the company, this site has the potential to produce 150,000 ounces of gold per year for a decade. In addition, more finds are coming online because of the Discover Abitibi mineral exploration program.

• St. Andrew Goldfields will commence production at the Holloway-Holt Gold Mine Complex near Matheson in the second quarter of 2007. The mine has a forecast production rate of 75,000-100,000 ounces of gold per annum for the next seven years, and will employ over 100 people.

• Tres-Or Resources Ltd. continues to return high quality results from its diamond exploration efforts southwest of Kirkland Lake. The richness of the finds, the large size of the host kimberlite pipes, plus expected low mine construction and operating costs in the area indicate a very positive future in this wholly new area of economic activity. Exploration continues. If more kimberlite structures are found, and the price of diamonds increases as expected, a mine could be in the making within 10 years.

Through the 1990s, one of the town's dominant political and economic controversies surrounded a proposal to ship Toronto's garbage to the Adams Mine, an abandoned open pit mine in Boston Township just outside of Kirkland Lake.

Kirkland Lake is also self-sufficient when it comes to power production with a generator that produces up to 117MW.

Kirkland Lake also has a shopping mall with stores including Ardene, Box Office Entertainment and The Source by Circuit City, Carlton Cards, Dollarama, easyhome, Hart Stores, North Shore Outfitters, ReMax and Warehouse One.