The dormant Beaver Brook antimony mine near Gander now has all the necessary provincial approvals to once again produce antimony concentrate for industrial markets. The reopening of the Beaver Brook mine is one of several significant new mining-related activities that will advance in the coming months as other new developments are proceeding at Pine Cove and Belloram.

Beaver Brook Antimony Mine Inc. expects to have the underground mine up and running within three months. The company has already registered the required development, rehabilitation and closure plans with the province.

"This development is great news for the communities and residents of central Newfoundland," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "This operation could employ up to 90 people over the next seven to 10 years and will also generate important economic activity for the businesses in the region that will provide supplies and services to the mine and the people it employs."

Antimony metal is used as a hardener in lead for storage batteries. Some antimony compounds are also widely used in making flame-retardant materials for products such as clothing and toys. The mine began operating in 1997, but closed the following year as a result of declining international prices. The market has since turned around.

After a record year in 2007, the province�s mining industry is starting 2008 with tremendous strength by preparing to welcome two new significant mining-related operations to rural Newfoundland and Labrador in addition to the Beaver Brook mine. The Pine Cove gold mine on the Baie Verte Peninsula is nearing the operating phase and a stone quarry for Belloram has received environmental approvals.

At Anaconda Mining Inc.�s Pine Cove project, Newfoundland and Labrador Hydro contractors are currently installing power lines to the new mine and processing facility, which the company plans to begin operating within three months. Anaconda estimates the mine will employ approximately 44 people over the 15-year life of the mine.

On the south coast, Continental Stone Limited has submitted a development plan for the stone quarry, as well as crushing and marine terminal facilities near Belloram. The company plans to begin exporting aggregates to the United States in 2009, pending regulatory approvals.

The record level of activity in the province�s mining industry is having a major impact across the province, but especially in rural areas where the vast majority of mining activity occurs. The gross value of the province�s mineral shipments reached $3.9 billion in 2007, which was 490 per cent higher than in 2004. Likewise, companies invested a record $160 million exploring for minerals throughout the province.

"We are investing strategically to make this province even more competitive on the global mining stage," said Minister Dunderdale. "Through our geoscience funding, grassroots mineral exploration incentives and leading-edge online presence, we are attracting mineral exploration investment from around the world."

Last year, the province maintained its record-high $2.5 million investment in the Mineral Incentive Program. Every dollar the province spends under the program�s junior exploration assistance component generates an additional $3 in private sector exploration expenditures.

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Media contact:
Corey Snook
Communications and Marketing Manager
Department of Natural Resources
709-729-5777, 728-2837
coreysnook@gov.nl.ca

2008 01 18                                                  10:15 a.m.