House of Assembly passes Mineral Act Amendments

Charles Furey, Minister of Mines and Energy, released the following statement today following the passage of Bill 38, An Act to Amend the Mineral Act, in the House of Assembly:

The amendments to the Mineral Act passed in the House of Assembly today accomplish two objectives. First, they modernize important aspects of the province's mining regime governing competitive claim staking, the issuance of exploration approvals and the mineral exploration process leading to the issuance of a mining lease.

Second, they set out the conditions under which a mining lease is granted and the requirements for further processing of mineral resources in our province. Government's intentions and policy regarding the requirements for further processing of mineral resources in our province, have been clearly and consistently communicated. Our policy states that when it is appropriate for the orderly production of mineral resources and it is in the best interest of the province, then further processing must take place in Newfoundland and Labrador.

The amendments create certainty, and clearly lay out our policy which was first reflected in the 1995 amendments to the Mineral Act. These amendments required "primary production", meaning the smelting, processing and refining of a mineral or mineral ore, to take place in the province as a condition of a mining lease, if it was economically feasible to do so. The passage of Bill 38 ensures there is no longer a potential for conflict or a lack of certainty for industry, for government, and for the people of Newfoundland and Labrador, as it relates to our policy on primary production.

Government's policy is simple and is now a part of our province's legislation. The province's legislation reaffirms the right of government to order further processing of minerals granted under a mining lease issued by government thereby fulfilling government's obligation to the people of Newfoundland and Labrador, the owners of our mineral resources, to gain maximum benefits from the development of their resources.

Government also recognizes that developers of our resources and investors in our province are essential to the further development of our province's potential. If they are to invest in our province, they must be sure that they understand our requirements, and they must be sure that they can earn a reasonable return. The Mineral Act establishes a clear and unambiguous public policy framework for the mining industry.

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