The following statement was issued today by Ed Byrne, Minister of Natural Resources. It was also read in the House of Assembly:

New investment being made in the Mineral Incentive Program and regional geology services

I rise today to inform this House of two new investments being made by government to build on the momentum and growth underway in the mineral sector and our continued effort to attract new business and employment prospects to our province.

On March 6, I attended the Prospectors and Developers Association of Canada annual convention. This industry gathering, one of the largest of its kind in Canada, attracts thousands of industry representatives who take the opportunity to network with their colleagues and investigate emerging opportunities in exploration and development.

The convention provides an appropriate forum in which to promote the rapidly growing mineral sector in Newfoundland and Labrador.

I spoke at the convention and outlined government�s intention to commit $3.0 million in Budget 2006 to enhance the Mineral Incentive Program and to make improvements in the provision of geological services in the province. This is $1.4 million in new funds over current levels.

Of this, $2.5 million is dedicated to the Mineral Incentive Program. This is largest contribution ever made in this program�s history. The Mineral Incentive Program is designed to promote prospecting and exploration activity in the province. It provides an investment by government which benefits junior companies and prospectors in their effort to leverage additional private funds to engage in exploration.

In 2005, 50 individuals and firms received assistance under the program. The additional funding for 2006-07 will help meet increased demand by the industry. For every dollar invested by government, $1.41 of private capital is spent on grass roots exploration.

Also, I am pleased to announce that government is committing an additional $500,000 to expand regional geological work in the province. The provision of core geo-science information is a benefit for the exploration community as this is the first step in the identification of suitable prospects for more detailed mineral exploration.

The dividends are clear. When we encourage more exploration activity, then we increase the potential for new mine development. All of which leads to new business and employment opportunities for the people of the province directly from their resources.

Government, through a targeted investment strategy in these programs, is active in encouraging new business development.

The key indicators for 2005 support the direction government is taking with these Budget 2006 initiatives. The total value of mineral shipments in the province reached the unprecedented level of $1.5 billion in 2005, as compared to $687 million in 2004. Shipments are forecast to rise to a staggering $2.6 billion in 2006.

Exploration expenditure, another key indicator of growth, has increased by 30 per cent since 2004 to reach $45 million in 2005. We anticipate that it will reach $50 million in 2006. Last year, capital expenditure by mining companies operating in our province was in the range of $500 million.

Our people are benefiting from this growth. Particularly, rural areas of the province are benefiting from associated employment in the mineral sector. In 2005, 3,200 persons were employed in the industry.

We are firmly on the agenda for future growth. I am confident that the people of our province will benefit from the renewed prosperity being driven by this vital sector of our economy.

2006 03 21                                 1:50 p.m.