Newfoundland first to renew MDA with federal government

Newfoundland is the first province to renew a federal-provincial agreement to stimulate mining and exploration, but the new agreement is shorter in length and financing. Newfoundland recently signed the Canada-Newfoundland Co- operation Agreement on Mineral Development, a 4-year program which will contribute $17.5 million to the province’s mineral industry.

The program is essentially an extension of one of several federal- provincial agreements (MDAs), implemented in 1984 and 1985, that provided financing for regional mineral development across Canada.

“In terms of its thrust and objectives, this agreement is a continuation of the old MDA,” said Norman Mercer, mineral exploration consultant to the government of Newfoundland and Labrador.

But the old agreement covered a longer period, five years, and provided $21.5 million for mineral development in Newfoundland.

Funding for the new program, which will be split between the federal (70%) and provincial (30%) governments, will be divided into five different categories: geoscience, technology development, economic development studies, assistance to individuals and companies and public information.

In comparison to the old agreement, which expired last year, there will be some subtle changes within the various categories, said Mercer. For instance, the public information program will be stepped up to increase awareness of Newfoundland’s mining industry. In addition, more emphasis will be placed on environmental factors, especially within the technology development category.

As part of an individual assistance program, the agreement will provide training for would-be prospectors. “In Newfoundland, we are trying to train a whole new generation of prospectors,” Mercer said.

Newfoundland Mines and Energy Minister Rex Gibbons said he was particularly pleased that geoscientific research will be a major component of the agreement. “This agreement will continue the investigations that will provide exploration companies with a state-of- the-art database, he said. “The ultimate goal is to increase overall levels of mineral exploration.”