The Honourable Andrew Parsons, Minister of Industry, Energy and Technology, today highlighted the bright future for the province’s mineral industry that continues to be a key economic driver for the province. Minister Parsons cited that mineral exploration activity for 2020 in Newfoundland and Labrador was the highest it has been over the past five years.
In 2020, the province saw 389 mineral exploration applications processed; the highest number in any of the last five years. Mineral exploration expenditures are projected to be over $61 million in 2020 – up from $50 million in 2019. This number is building towards the annual mineral expenditure vision of $100 million by 2030 as set out in ‘Mining the Future 2030.’
As the pandemic hit, it was expected that the slowing economy, depressed commodity prices and difficulty in raising funding for exploration would lead to a down year in mineral exploration.
The Provincial Government announced measures to assist the mineral exploration, mining and quarry industries during the Covid-19 global pandemic, including waiving mineral expenditure requirements for 2020 and deferral of rental and fee payments. These measures provided financial relief of over $30 million, easing some of the pressures facing these industries until the economy begins to recover.
The price of gold remained strong throughout the pandemic and Newfoundland and Labrador’s strong gold potential, with projects that are either operating, under environmental assessment or in active exploration, coupled with some world class assay results, has been the main driver of this year’s unexpected thriving exploration activity. The mineral exploration industry worked closely with public health officials to implement the necessary protocols to operate safely during the pandemic.
Mining, mineral exploration and quarrying are important industries for the province. Almost $4.2 billion in mineral shipments, $61.2 million in exploration expenditures, and employment nearing 7,000 person years are projected for 2021.The quarry industry is valued at nearly $30 million with greater than five million tonnes in quarry production in 2019. These industries create opportunities for local businesses, and increase the province’s ability to invest in programs, infrastructure, education and health care.
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“The mineral exploration numbers for 2020 are very impressive – illustrating the mineral potential that exists here in Newfoundland and Labrador. I look forward to continuing to grow this critical industry, especially as the need for many of our products increase as we transition to a greener economy. Gold is the main driver for this year’s exploration boom and Newfoundland and Labrador has the potential for deposits containing metals needed for clean technologies such as wind turbines, solar panels, batteries, transmission lines, and other low carbon applications.”
Honourable Andrew Parsons
Minister of Industry, Energy and Technology
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Learn More
News Release: Measures to Assist the Mining, Mineral Exploration and Quarry Industries
Mining the Future 2030 – A Plan for Growth in the Newfoundland and Labrador Mining Industry
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Media contact
Lisa Lawlor
Industry, Energy and Technology
709-729-5777, 631-8155
lisalawlor@gov.nl.ca