Provincial Mining Industry Continues to be Multi-Billion
Economic Powerhouse in Newfoundland and Labrador

Multi-million dollar joint venture agreements, ongoing and potential mining developments, and advanced exploration efforts across the Island and in Labrador hold great promise for the future of Newfoundland and Labrador’s mining industry.

“The provincial mining industry is one of the chief catalysts currently driving investment and growth in Newfoundland and Labrador, and is the second largest resource industry in terms of revenue and industrial Gross Domestic Product,” said the Honourable Jerome Kennedy, Minister of Natural Resources. “Existing and future developments in addition to our province’s exciting mineral potential will help to ensure industry sustainability and the continued growth and prosperity of Newfoundland and Labrador while securing many important economic and employment opportunities for the people of the province.”

The value of mineral shipments in 2012 was $4.1 billion. Annual expenditures on mineral exploration remained robust despite increasing global uncertainty in financial markets. Increasing need from global economies continued to strengthen the demand for historically-significant base and ferrous metals with a renewed interest in other commodities such as fluorspar, uranium, rare earth elements and gold. The Department of Natural Resources’ Mineral Incentive Program continued to support the exploration sector with a budget of $2.5 million for cost-shared funding of approved projects. The program also provides support to prospectors through grants, mentoring and training courses.

The Labrador iron district experienced a surge in growth driven by a strong global demand for iron ore, particularly from China. New activity in this sector includes major expansions of existing operations by the Iron Ore Company of Canada; development of new or renewed operations by Labrador Iron Mines, Tata Steel Minerals Canada, and Wabush Mines; and advanced projects such as Alderon’s Kamistiatusset iron deposit. The province also issued a Call for Expressions of Interest to seek proposals for the development of the Julienne Lake iron ore deposit in western Labrador. Julienne Lake presents an opportunity to develop a major new project in the heart of Labrador’s iron ore district with the potential to provide significant economic and employment benefits for the region.

Upwards of $15 billion of investment in Labrador mining projects may be realized over the next 10 years. Legislative amendments to the Electrical Power Control Act, 1994 (EPCA), and the Churchill Falls (Labrador) Corporation Limited (Lease) Act, 1961, (CFLCo Lease Act) passed in the House of Assembly will allow for the creation of a new electricity rate policy for industrial customers on Labrador’s Interconnected System. The new policy will help to ensure a transparent and fair rate for all industrial customers in the region and will assist in keeping the rate competitive with other Canadian mining jurisdictions.

“Newfoundland and Labrador has a proven track record of world-class mineral deposits with diverse potential and investment opportunities to explore and discover, and our government is committed to long-term industry success and development,” said Minister Kennedy. “We will continue to support responsible mineral exploration, discovery and development in the best interest of Newfoundlanders and Labradorians, and pursue sustainable resource opportunities that will ensure benefits for the people of the province.”

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Media contact:
Heather Maclean
Director of Communications
Department of Natural Resources
709-729-5282, 697-4137
heathermaclean@gov.nl.ca 

2012 12 27                       10:15 a.m.