Government optimistic about level of mineral activity in province

Ed Byrne, Minister of Natural Resources, said today the Government of Newfoundland and Labrador is optimistic about the level of activity in the mineral industry in this province. Minister Byrne provided an overview of the mineral industry and its activity in the province during an address to the Resource Investors Forum at Humber Valley Resort. The forum was sponsored by the Newfoundland and Labrador Chamber of Mineral Resources.

�The mineral industry definitely plays a critical role in the economy of Newfoundland and Labrador today,� said Minister Byrne. �The industry is certainly one of the sectors that our government believes has the potential to drive our economic development in the near and long-term future � particularly because of the impact it has on the rural regions of our province.

�There is significant investment occurring in the mineral industry in such areas as reinvestment in existing projects, the development of new projects and in exploration. In fact, the investment this year will approach the half billion dollar mark.�

Minister Byrne said that in terms of mining, it is expected that the total value of mineral shipments will be $1.4 billion in 2005 � that is a significant increase from the $687 million realized in 2004. Government is also anticipating an increase in employment in this sector from 2,963 in 2004 to 3,200 in 2005, the minister added.

In highlighting some of the activity happening, Minister Byrne referred to the development of Voisey�s Bay which is well ahead of the original schedule and is a testament to the workforce of Labrador and Newfoundland. In referring to new developments, the minister mentioned the ongoing development of the Duck Pond Project by Aur Resources and the continued planning process of the Pine Cove Project by Anaconda. Furthermore, within existing projects, investments continue to occur by the Iron Ore Company of Canada and by Wabush Mines.

�It is great to see there continues to be significant investment in our ongoing and developing mining projects in this province,� said Minister Byrne. �Yet, what is just as exciting is the tremendous amount of mineral exploration in the search for additional finds and opportunities. And this government is committed to seeing this activity continue.�

Minister Byrne said government encourages the level of exploration activity through its Mineral Incentive Program which over the last two years has seen $3 million invested. For this year�s program, the department has approved to date 69 prospectors grants for grassroots and traditional prospecting and15 junior exploration assistance grants totaling over $1.5 million.

�As a point of interest, for every $1 government invests in the Mineral Incentive Program, another $1.41 is invested by private sector,� said Minister Byrne. �Obviously this program is an example of a successful government-industry partnership.�

In terms of the level of mineral exploration throughout the province this year, Minister Byrne said government is forecasting it to total $40 million with exploration efforts primarily focused on base-metals including nickel, copper and zinc, as well as gold prospects. The minister indicated the amount being invested in exploration represents a 28 per cent increase over last year and a staggering 43 per cent increase over activity in 2003. Of the $40 million to be spent this year, $27 million will be spent in Labrador and $13 million is expected to be spent on the island. With reference to Labrador, last year approximately $11 million was spent on exploration and, according to the minister, there is renewed interest in the search of minerals in Labrador.

�What makes the level of exploration activity in this province so vitally important to our economy is where this work is carried out � in northern, central and western Labrador, the Northern, Bonavista, Avalon and Burin Peninsulas, in Western and Central Newfoundland, and on the south coast of the island,� said Minister Byrne. �This is a province-wide activity effort and the benefits of this activity are felt in many communities across the province.�

Minister Byrne said in addition to the investment in the Mineral Incentive Program, government is making other investments to promote the development of the province�s mineral resources. These initiatives include $150,000 for additional geological survey work; $75,000 to start the process of making available electronically 6,000 exploration assessment reports; and the completion of two studies on the impact of the mineral industry on the provincial economy.

�These initiatives will assist us complete additional field work; make available freely and easily any and all information we have gathered on the province�s mineral prospectivity to all prospectors and exploration companies; and make available to the public important economic data about the industry,� said Minister Byrne. �We believe these efforts will assist government in promoting this province as a positive investment opportunity for the mineral industry.�

Complete lists of the grants that have been awarded under the Mineral Incentive Program are available at:
Junior Exploration Assistance Grants: //www.gov.nl.ca/mines&en/programs/jea/
Prospectors Assistance Grants: //www.gov.nl.ca/mines&en/programs/prospectors

For the most recent edition of MINFO please go to: //www.gov.nl.ca/mines&en/publications/minfo/vol11no1.pdf


Media contact: Carmel Turpin, Communications (709) 729-5282, 685-4624

2005 09 16                                        9:50 a.m.