NB 1264
Oct. 16, 2006
FREDERICTON (CNB) - Mineral, oil and natural gas companies are spending more money and increasing exploration activities in New Brunswick. The mineral and hydrocarbon (oil and natural gas) industry will spend $61 million on exploration in New Brunswick in 2006, a $22 million increase over last year.
Natural Resources Minister Donald Arseneault said that while some of the country's best mineral potential is right here in New Brunswick, a bigger investment in the nearly $1-billion mining industry serves to attract more exploration companies to the province.
"The government's Charter for Change will provide more funding for New Brunswick's mining and natural gas industries to assist with prospecting and exploration," he said. "With increasing global competition, we need to be sure we are doing all we can to encourage investment in mineral and hydrocarbon exploration in New Brunswick and to continue to support development of existing reserves."
New Brunswick currently offers an Advanced Exploration Program for base metal mines in the Bathurst Mining Camp, where it matches funding up to $2.5 million for advanced exploration. Also, $350,000 is available to junior mining companies on a cost-shared basis, while government offers $250,000 in grants annually to prospectors.
Arseneault is confident the industry is moving in the right direction and believes that by offering more incentives, mineral production has the potential to reach $1 billion annually.
"Economic contributions to the provincial economy from both mineral and oil and gas resources are steadily climbing," he said. "As government becomes more and more proactive in letting the world know that New Brunswick is fertile ground for exploration, then the sky is the limit."
In 2006, the exploration industry is expected to invest about $16 million searching for metallic minerals and a further $45 million in its quest for natural gas for a total of $61 million. Companies spent a total of $39 million on exploration in 2005.
The number of mineral claims in good standing in New Brunswick reached 20,800 in 2006, up from 13,000 in 2003. This exploration boom has largely been driven by metal price increases.
06/10/16
MEDIA CONTACT: Brent Roy, communications officer, Natural Resources, 506-453-7928.
06/10/16