Mining is an important part of the Manitoba economy and a major part of our economy here in the North.
How important is mining? The mineral industry is the second largest primary resource industry in Manitoba. In 2008, the combined value of mineral production for metals ($1.55 billion), industrial minerals ($141 million) and petroleum ($831 million) totalled $2.5 billion. The province's mineral industry employs about 5,200 workers directly with another 18,000 in spin-off jobs.
That is why it is important to continue to invest in exploration and the development of our mining industry. Our provincial government is committed to doing exactly this. We recently announced we are providing $1.4 million through the second round of the 2009 Mineral Exploration Assistance Program (MEAP) to support 25 new mineral exploration projects,
This comes at a time when there have been some encouraging developments in the mining sector. The news from Snow Lake is good; Hudbay Minerals is developing a new mine and restarted the Chisel North Mine while Garson Gold Corporation/Alexis Minerals Corporation are looking at reopening the new Britannia Gold Mine.It is important to note that MEAP funding helped HudBay and Garson Gold advance their projects.
MEAP was renewed for an additional three years in April 2008.The program offers $2.5 million of assistance annually through two offerings per year. The program provides assistance for up to 25 per cent of approved eligible expenses to a maximum of $300,000.There is a higher level of assistance, up to 35 per cent to a maximum of $400,000, to encourage exploration in under-explored frontier regions and to help sustain mining communities.
Eleven of the 25 projects qualify for the higher level of assistance and are in the Lynn Lake, Leaf Rapids, Snow Lake and other Northern areas.
Mining projects throughout the province are expected to generate $18.8 million in additional exploration expenditures.
It is also important to ensure that Manitoba continues to be seen as a jurisdiction that is committed to mining. Manitoba is ranked as one of the top 10 places worldwide for mineral policies favourable to mining investment. We are among the top provinces in Canada for competitiveness in mining taxes and our geological database has been consistently placed as one of the best in the world.
It is important we continue to invest in mining, an industry that is not only critical to the North but all of Manitoba.
