Government continues funding for Mineral Incentive Program

Mines and Energy Minister Lloyd Matthews said today the continuation of funding for the Mineral Incentive Program (MIP) is a positive and proactive step in encouraging new investment in our mining sector.

This five-year, $22 million government and industry initiative was first announced in the 1999-2000 Budget and has increased mineral exploration in the province.

"This program has encouraged new prospectors and mining companies to become involved in the Newfoundland and Labrador mining industry," said Minister Matthews. "As new exploration takes place, new discoveries will hopefully be made."

Minister Matthews noted that this program was one of the key recommendations made to government during the Jobs and Growth Mining Forum held in November of 1999.

Program components include the Junior Company Exploration Assistance Program, Prospectors Assistance Program, and the Dimension Stone Incentive Program.

"The feedback that government has received from local prospectors and mining companies would suggest that this program is a great success," said Minister Matthews. "Government anticipates full subscription to the program again this year."

To date, the MIP has funded 300 prospectors, 71 junior exploration projects and 18 dimension stone projects.

"Exploration is key to the development of our mineral industry," said Minister Matthews. "This program is an excellent example of the commitment and confidence that government and industry have in the future of the Newfoundland and Labrador mining sector."

Media contact: Darrell Mercer, Communications, (709) 729-5777.

2002 03 21                             3:30 p.m.