Alternatives being examined to Ontario Mineral Exploration Program

The Ministry of Northern Development and Mines is examining alternatives to its popular Ontario Mineral Exploration Program (OMEP). It hopes to come up with some definitive conclusions on alternatives by mid December, a ministry spokesman said.

In the meantime, only applications for OMEP assistance on work carried out prior to the introduction of the federal government Canadian Exploration Incentive Program (CEIP) on Jan 1, 1989 will now be accepted.

The assistance to be provided by CEIP is similar to some of the assistance currently provided by OMEP. Grants and tax credits for up to 25% of eligible exploration expenses are provided under OMEP.

The Ministry has embarked on a round of consultation with the Prospectors and Developers Association of Canada, the Ontario Mineral Exploration Federation, and other interested groups to assess the impact of CEIP and determine whether other ministry initiatives are required to provide further support for mineral exploration in Ontario.

Introduced as an incentive to encourage mineral exploration in Ontario, OMEP has proven to be an outstanding success, the Ministry said.

Since 1980, 1,610 designated programs have been completed across the province, representing total exploration expenses of $316 million of which OMEP contributed almost $60 million or about 19%.

OMEP has provided financial assistance toward the exploration work of nine deposits that commenced production, including two of the three mines in the Hemlo camp, and two recent ones, Canamax’s Kremzar Mine and American Barrick’s Holt-McDermott Mine.

The province will spend nearly $35 million over the next three years to honor current OMEP commitments and those made between now and Dec 31.