Funding continued for Mineral Incentive Program

Mines and Energy Minister Walter Noel said today that the continuation of funding for the Mineral Incentive Program (MIP) in Budget 2003 is positive news for the mining sector in our province. This government and industry initiative continues to boost exploration and encourage new investment in the mining sector of Newfoundland and Labrador.

First announced as a three-year program in March 1999, the MIP was upgraded to a five-year, $22 million incentive plan in March 2000. The annual budget is $2.23 million.

"This program continues to be a great success and demonstrates this government�s commitment to expanding the mining industry in this province," said Minister Noel. "It continues to encourage new prospectors and mining companies to engage in exploration that may lead to new discoveries."

To date, the MIP has funded 377 prospector assistance grants, 93 junior company exploration assistance grants and 21 Dimension Stone Incentive Program grants. Project expenditures have totaled over $15.1 million.

Over the past two years alone, the MIP has contributed to the signing of at least 35 private sector option agreements involving prospectors, junior and senior mining companies.

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

"Exploration is the key to future mining development," said Minister Noel. "The activity generated by the Mineral Incentive Program clearly indicates that the program is having a positive impact on the industry and on our economy."

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

2003 03 27                                       4:25 p.m.