|
March 26, 1998
(Mines and Energy)
Budget to continue to encourage investment in
province
Charles J. Furey, Minister of Mines and Energy,
says the departmental budget, which is set for approximately $8.7
million, will enable Government to continue to promote and
facilitate mineral and petroleum exploration and development in
the province.
"The mandate of the Department of Mines and
Energy is to create integrated mining and energy industries and
to maximize provincial revenues from the development of these
resources, consistent with policies that are fair to developers
and lead to a continuation of high levels of exploration and
development," says Furey. "The Government understands
exploration is an essential component in the development of its
resources. It leads to the discovery of new resources and, in
turn, results in the generation of new wealth through new
investment and employment and business opportunities in the
province's primary engine of growth."
The following are the Department's budget
highlights for the 1998/99 fiscal year:
Increase in funding allocation for
prospecting grants to $100,000. This is a 30 per cent
increase over the 1997/98 budget year. The additional
funding will enable the Department to award
additional and/or increase financial assistance to
Newfoundland and Labrador prospectors. In the long
term this will result in increased mineral
exploration in the province.
New funding allocated to create two
new policy specialist positions in the Department -
one position for each of the Mines and Energy
Branches. The policy specialists will be responsible
for researching and developing new policies and
updating current departmental policies, where
required. The policy specialists will also promote
mineral and energy resources in an effort to inform
potential investors and enable them to more
confidently invest in the province.
Additional resources allocated to the
Canada-Newfoundland Offshore Petroleum Board's (C-NOPB) 1998/99 budget on a cost recovery basis.
Provincial and federal officials have held
discussions with the petroleum industry and the C-NOPB is expected to recover a much greater
percentage of its costs from industry in the months
to come.
Over the next decade, capital
investments in energy and mining projects are
expected to exceed $19 billion. "The annual
economic output in the mines and energy sectors has
the potential to increase by $5 billion in the next
five years and will likely generate up to $450
million in new revenues to the provincial treasury,
representing one quarter of all current account
revenues," says Furey. "I am optimistic
that the initiatives undertaken in this budget will
further encourage investment in these sectors."
Contact: Tara Laing, Communications, (709)
729-4890
FACT SHEET
Increase in funding allocation for prospecting
grants
-
Approved projects on Crown Lands or the
proponents=
registered claims are supported by grants up to $4,000
for eligible prospecting expenses. Additional assistance
of $1,500 for projects involving credible, newly
discovered prospects is usually available. Awarding of
prospecting grants is determined by a Department of Mines
and Energy Selection Committee.
-
To date, 249 projects involving various
prospecting targets, have been funded. Approximately 13
per cent of completed projects resulted in the discovery
of significant prospects which resulted in option
agreements with mineral exploration companies. These
prospecting successes resulted in private-sector mineral
exploration expenditures approaching $5 million.
1998 03 26 5:47 p.m.
|
