The Department of Mines an Energy continues to document and assess the mineral potential of Labrador and is actively supporting and promoting mineral exploration and development in Labrador.

• Through the Geological Survey Division, the department is conducting geological mapping in areas south of the Churchill River and in the Nain region of northern Labrador.

• The Geological Survey is documenting the potential for nickel and base metal deposits in all of Labrador and has recently published new reports on the nickel potential in Labrador.

• Expert assessment of the opportunity to develop a silicon smelter in Labrador West has been positive, and government will soon begin discussions with potential developers for this important new project which will strengthen and diversify the economy of Labrador West.

• Through its Mineral Incentive Program, announced in the 1999 budget, the Department of Mines and Energy has provided a total of $230,000 to junior exploration companies and prospectors in Labrador.

• Government provided $47,300 to Shabogamo Mining and Exploration in 1999, which has led to the development of a new silica mine in Labrador West employing 30 people.

• Sixteen Labrador prospectors from Labrador City, Happy Valley-Goose Bay, Hopedale, Davis Inlet, and St. Lewis have received grants totalling $42,500 under the Prospectors Assistance Program in 1999 and 2000.

• Through its regional office in Labrador, department officials have worked closely with the Labrador Inuit Development Corporation to develop and expand the dimension stone industry at Ten Mile Bay near Nain.

• This project is the first Aboriginal owned and operated mining project in Canada. It now employs 50 people.