May 27, 2014
The following statement was given today in the House of Assembly by the Honourable Derrick Dalley, Minister of Natural Resources:
Kami Benefits Agreement Raises the Bar for Future Mining Development
Mr. Speaker, I rise in this Honourable House today to celebrate the completion of the benefits agreement for the Kami Iron Ore Project in western Labrador.
This agreement is great news for Labrador and raises the bar for operators looking to do business in the province. We have set high standards so that industrial and employment benefits accrue directly to Labradorians and Newfoundlanders. This is in keeping with our government’s commitment to ensure natural resource development is maximized for the people of the province.
The Kami Iron Ore Project will create direct employment for 800 workers at the peak of construction and approximately 400 during the operations phase. In addition, the project will contribute at least $18 billion to provincial GDP and $2.6 billion in taxes and royalties to the Provincial Government over its anticipated 30-year life.
The agreement establishes a process to ensure Newfoundland and Labrador’s participation in the project.
Residents of Newfoundland and Labrador will be provided first consideration for employment during all phases of the project and a Labrador-first hiring priority protocol has been established.
Suppliers in the province will also be provided full and fair opportunity and first consideration for procurement opportunities during all phases of the project. A Labrador-first procurement priority protocol has also been established.
Mr. Speaker, for the first time in the province, the benefits agreement features firm commitments to hire a minimum number of registered apprentices for all phases of the project as part of its responsibility to maintain a supply of skilled tradespersons. The partnership commits to a minimum of 15 per cent of the skilled trades workforce to be apprentices for the construction phase of the project, and a minimum of 25 per cent of the skilled trades workforce to be apprentices during the operations phase.
The gender equity and diversity plan developed for this project is the latest example of government and industry’s commitment. We continue to be a leader in Canada with regards to gender equity and diversity in the natural resource sector. Qualified women, persons with disabilities, Aboriginal persons and visible minorities will have equitable access to the many employment and business opportunities associated with the project. One of the many initiatives includes the provision of a 40-space employee childcare centre.
We are looking forward to construction of the Kami Iron Ore project, expected to begin this summer. The first phase of the project will produce eight million tonnes of concentrate annually and has the potential to expand to 16 million tonnes.
Labrador West has a well-established mining industry that has brought considerable economic activity to the region for many years. This project positions the region for continued growth over the long-term and will bring economic and other benefits to businesses, residents, and the region as a whole. Thank you.
2014 05 27 2:00 p.m.