The sparsely populated, but mineral-rich, Ring of Fire zone in northwestern Ontario will be getting high-speed internet at a cost of $67.1 million to taxpayers.

Funding for the project, which involves the installation of 880 kilometres of new fibre-optic cable, is being announced Friday in Thunder Bay by the federal and provincial governments in hopes of spurring the mining of an estimated $60 billion in chromite, gold and other deposits in the region.

“In today’s economy, high-speed internet is no longer a luxury; it is essential,” said Navdeep Bains, federal minister of innovation, science and economic development.

Up to $37.1 million has been earmarked by the federal government and $30 million by Queen’s Park. The contractor is Rapid Lynx Telecommunications.

The investment follows Ontario’s decision in August to move ahead with an all-season road into the proposed Noront Resources mining project in the Ring of Fire zone after years of delays and negotiations with First Nations.

That road is expected to provide a much-needed economic boost to the area about 575 kilometres northeast of Thunder Bay and connect remote communities to other highways.

Federal officials said the high-speed internet will serve 610 households at five remote First Nations communities, including Fort Hope and Webequie, along with 36 businesses and institutions.

That averages out to almost $104,000 per location.

The Ontario government pledged $1 billion to develop the Ring of Fire three years ago and has been pressing Ottawa to match that amount to help build road access and electricity transmission corridors into the area.

Ontario has touted the Ring of Fire as one of Canada’s next great mining zones, with massive deposits of chromium, a key ingredient in stainless steel, and other minerals, which could provide thousands of mining and processing jobs for generations in the economically depressed area.

Bains touted the internet funding as “yet another demonstration of our government’s commitment to the economic development of northern Ontario.”

The service will help residents and businesses connect with the outside world better for everything from online distance education to new opportunities and job searches, he added.

“We are bridging the digital divide.”

Opposition parties have been critical of the Ontario government for not moving faster to develop the Ring of Fire.

Environmental assessments for the all-season road are slated to begin in January, six months before the June 7 provincial election, and construction is set to start in 2019.

Noront’s president Alan Coutts hailed the road is “a major step forward” for the company’s hopes of developing the mining site.

Loading... Loading... Loading... Loading... Loading... Loading...

The Ontario Chamber of Commerce has estimated the Ring of Fire could generate $9.4 billion in new economic activity over the next decade and support 5,500 jobs a year.

The absence of a roadway has been a major barrier to development, prompting U.S. mining giant Cliffs Natural Resources to pull out of a major mining project four years ago.