The Mineral Industry in Newfoundland and Labrador: Its Development and Economic Contributions
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GOVERNMENT OF NEWFOUNDLAND AND LABRADOR Department of Natural Resources Geological Survey THE MINERAL INDUSTRY IN NEWFOUNDLAND AND LABRADOR: ITS DEVELOPMENT AND ECONOMIC CONTRIBUTIONS R.J. Wardle Open File NFLD/2889 St. John’s, Newfoundland October, 2004 CLICK HERE TO VIEW THE TABLE OF CONTENTS NOTE Open File reports and maps issued by the Geological Survey Division of the Newfoundland and Labrador Department of Natural Resources are made available for public use. The purchaser agrees not to provide a digital reproduction or copy of this product to a third party. Derivative products should acknowledge the source of the data. DISCLAIMER The Geological Survey, a division of the Department of Natural Resources (the “authors and publish- ers”), retains the sole right to the original data and information found in any product produced. The authors and publishers assume no legal liability or responsibility for any alterations, changes or misrep- resentations made by third parties with respect to these products or the original data. Furthermore, the Geological Survey assumes no liability with respect to digital reproductions or copies of original prod- ucts or for derivative products made by third parties. Please consult with the Geological Survey in order to ensure originality and correctness of data and/or products. Recommended citation: Wardle, R.J. 2004: The minerals industry in Newfoundland and Labrador: its development and economic contri- butions. Government of Newfoundland and Labrador, Geological Survey, Department of Natural Resources, St. John’s, Open File NFLD/2889, 96 pages. GOVERNMENT OF NEWFOUNDLAND AND LABRADOR Department of Natural Resources Geological Survey THE MINERAL INDUSTRY IN NEWFOUNDLAND AND LABRADOR: ITS DEVELOPMENT AND ECONOMIC CONTRIBUTIONS R.J. Wardle Open File NFLD/2889 St. John’s, Newfoundland October, 2004 REMARKS This document presents a brief overview of the economic development and current status of the Newfoundland and Labrador minerals industry, including its exploration sector. It is a non-tech- nical document with an emphasis on the review of statistical data, many of which have not been previously compiled in an easily accessible format. The first part reviews the history of mining and mineral policy in the province; followed by a presentation on the modern mining scene. This is followed by an examination of the historical trends in the gross value of mineral production, mineral taxation, and employment in the province. Finally, the last section examines the provincial historical trends in the mineral exploration sector. CONTENTS Page SUMMARY . vii INTRODUCTION. 1 Mines and Mineral Deposits – The Importance of Size . 1 A SHORT HISTORY OF MINING IN NEWFOUNDLAND AND LABRADOR . .. .. .. 2 Early Days . 2 Modern Mining . 4 Summary – A Cyclical History . 6 THE DEVELOPMENT OF PROVINCIAL MINERAL POLICY . 9 The Pre-confederation Period, 1800 to 1949. 9 The Post-confederation Period, 1949 to 1972 . 10 The Period 1972 to 1993 . 11 Recent Developments, 1993 to Present . 12 THE PRESENT-DAY (ca. 2003) MINING INDUSTRY IN NEWFOUNDLAND AND LABRADOR. 14 Producing Operations – Metals . 14 Producing Operations – Industrial Minerals . 16 Producing Operations – Dimension Stone. 17 Inactive Operations . 17 Developing Operations. 18 Other Deposits with Development Potential . 18 Significant Undeveloped Resources . 18 THE ECONOMIC VALUE OF MINERAL PRODUCTION – PRESENT DAY AND HISTORICAL PERSPECTIVES. 19 Key Statistics . 20 Present-Day Mineral Production . 20 Historical Value of Mineral Production . 22 The Pre-confederation Period 1867-1949. 22 The Post-confederation Period, 1950-2002 . 25 Trends in the Gross Value of Mineral Production – The Controlling Influence of Iron-Ore Prices? . 29 Effects of Other Metal Prices. 31 The Gross Value of Mineral Production broken down by Mining Project . 33 Estimated Effects of a Voisey’s Bay Mining Operation on the Value of Mineral Production . 36 Comparison of Historical Mineral Production and Offshore Oil Project Values . 38 Summary . 39 TAXATION AND EMPLOYMENT BENEFITS FROM MINING. 40 Taxation Benefits . 40 Mining Taxes and Royalties . 40 Other Taxation Revenue . 42 Comparison of Mining and Oil Revenues . 43 Employment and Wages. 43 Summary . 45 THE MINERAL EXPLORATION INDUSTRY . 46 Introduction . 46 Historical Exploration Expenditures . 46 i Page Other Measures of Exploration Activity . 48 Comparisons with other Canadian Jurisdictions . 48 Adequacy of Exploration Expenditures . 50 Summary . 53 ACKNOWLEDGMENTS. 55 REFERENCES . 55 APPENDIX 1: AN ENCAPSULATED HISTORY OF MINING IN NEWFOUNDLAND AND LABRADOR . 58 APPENDIX 2: SOURCES OF PRE-CONFEDERATION DATA . 61 APPENDIX 3: DEFINITION AND CALCULATION OF CONSTANT DOLLAR VALUES . 62 APPENDIX 4: STATISTICAL INFORMATION . ..