Mineral Potential. Northern Québec. and recent mining developments in. Robert Marquis Deputy Minister for Mines Mining Seminar Tokyo November 2012

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1 Mineral Potential and recent mining developments in Northern Québec Robert Marquis Deputy Minister for Mines Mining Seminar Tokyo November 2012 Photo : Minalliance

2 Presentation Summary Recent government actions Québec s Mineral Strategy Mineral potential in northern Québec: Production Potential for diversification The government s role in gathering data on mineral potential Conclusions and prospects

3 Recent government actions First Québec Mineral Strategy released in June 2009, it introduced mining companies to a new reality: The necessity to contribute to sustainable economic, social and environmental development through mining

4 Québec Mineral Strategy Built on a sustainable development approach, it aims to: Create wealth and prepare the future of the mineral sector in Québec Ensure environment-friendly mineral development Foster integrated, community-related mineral development

5 Existing Mining Tax system Aims: Collect a reasonable proportion of mining profits Finance the mining heritage component of the Natural Resources Fund Cover the costs of mine-related environmental liabilities Support the discovery and extraction of deposits Help open more mines in northern Québec Maintain competitiveness of the Québec system in relation to other countries with a well-developed mining industry

6 Existing Mining Tax system Concepts and measures: Annual mining profit is calculated mine by mine Rate is 16% of mining profit since December 2011 Allowances and credits are tax deductible

7 Québec Mineral Strategy Social Acceptability and Environment requirements Informing Stakeholders after claiming Consulting the public on new mining projects Propose a rehabilitation plan Deposit of financial guarantee for site rehabilitation

8 Quebec s northern Territory Although on a global scale Northern Québec is not that far North it is a very large and isolated area subject to subarctic conditions

9 Quebec within North America Largest province in Canada (1,667,441 km 2 ) 8 million inhabitants One of the top 10 most explored regions in the world Amount spent on exploration annually: over $700M in 2011 Annual investment in mining: over $3G in 2011 Value of annual production: over $8G in 2011

10 Québec s Northern Territory North of the 49th parallel 72% of the area of Québec 1.2 million km 2 1.6% of the total population of Québec: About 120,000 people 4 Aboriginal nations 63 communities

11 Northern Québec Mineral potential Active mineral claims Requested mineral claims Protected zones 70% of all active claims (in orange) are north of the 49th parallel In 2011, CA $ 2.1 billion was invested in exploration, to develop significant showings and to develop new mines in the North, representing almost two-thirds investments Protected zones (in violet) cover 9.4% of the territory

12 Northern Québec Mineral potential 8 producing metallic mines Total Québec production of gold,nickel and cobalt, platinum group of elements, iron ore, ilmenite and zinc 27 mining projects Significant potential for diversification for iron,gold, copper, diamond, lithium, niobium, tantalum, vanadium, uranium and rare earth elements(ree),graphite,phos phate

13 Northern infrastructures Energy and transportation James Bay and the North Shore are accessible by highways and served by hydro-powerlines Along the Hudson Strait, in Nunavik, a deep-sea port at Deception Bay is a key infrastucture for nickel mines Three other deep-sea ports also exist two along the St. Lawrence North Shore and one in the Saguenay Fjord

14 Northern infrastructures Sept-Îles : new multi-user dock, $220 million, 2014 Port-Cartier : dedicated for use by ArcelorMittal Saguenay : new railway service to the port, $36 M new investment including $10 M from Québec Ungava and James Bay : no port but 2 projects under examination Copyright 2008 ArcelorMittal Mines Canada

15 Mineral production: iron ore mining and potential Iron ore produced in Quebec represents ~50% of all Canadian production 3 producing mines for iron olnly are at Fermont 1 producing mine for iron and titanium is in Havre-St-Pierre Advanced iron ore projects: Schefferville (1) Chibougamau (1)

16 Mineral production: iron ore mining and potential DSO mine in construction, 2012 start up, up to 4 Mtpy conc. KéMag, Lac Otelnuk, Hopes Advance Bay projects: taconite projects, towards feasibility stage Challenge: transportation, power infrastructures and iron ore price Multi-billion $ investment forecast

17 Production and Potential for Nickel and PGE Entire current production of nickel, cobalt and platinum comes from Nunavik At present: 1 mine in production: Raglan Mine (XStrata Nickel) 1 major project under development (Nunavik Nickel) More untapped potential west of the Raglan trend

18 Potential for diversification in strategic metals In 2011, CA $ 25 M was invested in exploration and deposit appraisal for lithium, $ 40 M for rare earths and $ 82 M for other substances. Projects involving strategic metals are found throughout the North. These metals are essential to develop a great variety of new green technologies products

19 Role of the government The geoscientific work at the MRN has opened up the North to mining activities. $12M is devoted annually to this work. SIGEOM (Système d information géominière = mineral resources information system): accessible via the Internet data asset base valued at $5G Data on mineral potential

20 Conclusions and prospects Quebec s Mineral Strategy is opening the North for new gold, iron, nickel,lithium,vanadium, uranium, rare earths and diamond mines. Mining will have a long lasting influence on building of new infrastructures essentials to better service Québec s Northern population.

21 Conclusions and prospects Five years from now, underway mining projects will bring new mining camps north of the 49th parallel, a highly isolated area New public data is mandatory to document the mineral potential of this vast northern area The pace of new discoveries also relies heavily on gathering data using SIGEOM as a repository as well as a highly efficient target location tool Quebec s Mineral Strategy offers a long term vision of sustainable development, based on mining

22 Thank you for this highly appreciated opportunity to speak about recent mining developments in Québec I wish to invite you all to join us in this exciting long term adventure of Québec s Northern Development. A good way to do it is to register in our annual mining meeting in Québec City.

23 Invitation Of Mines and Men November 26-29, 2012 Québec City Convention Centre

24 Thank you!