Mining incentives program enriched substantially
To stave off an expected downturn in mineral exploration this season, the Yukon government has more than doubled funding to its mining incentive program.
To stave off an expected downturn in mineral exploration this season, the Yukon government has more than doubled funding to its mining incentive program.
Returning from Roundup, an annual mineral exploration conference in Vancouver at the end of January, Energy, Mines and Resources Minister Brad Cathers told the Star that investment in the mineral sector would likely take another hit.
"It's going to be down somewhat compared to last year, but just how much, it's too early to say," Cathers said at the beginning of February, hinting the government would step up with some relief.
On Wednesday, Cathers announced the $700,000 program would be increased to $1.8 million.
"The money is aimed at companies that may have been delaying work to encourage them to make that investment now," Cathers said.
"We've heard concerns, certainly from industry, that exploration projects are especially susceptible to the challenges in the current economic markets."
As base and precious metal prices have fallen sharply amidst the recession sweeping the globe, the Yukon government's move is aimed at stabilizing current exploration investment trends.
In 2007, investment by that sector reached an all-time high of $140 million, but dropped to $100 million in 2008.
Cathers anticipates the new infusion for the Yukon Mining Incentive Program (YMIP) will ultimately pay dividends.
For every dollar the government makes available through YMIP, it's estimated that $10 in mining and exploration spending is generated, Cathers added.
"With mining being so important to the territory and so important to the economy is the ultimate end benefit in a mine project if it moves forward in a responsible manner," said Cathers. "It adds significant employment here, and is a tremendous investment for the economy."
Carl Schulze, president of the Yukon Chamber of Mines, welcomed the announcement.
"That's certainly a good time to do it, that's for sure," Schulze told the Star today.
"Things are not going to be down forever, but I don't know how long they'll be down."
The chamber president added the new funding bodes well for stimulating local industry and employment.
"Anything that helps to improve capacity-building by employing local people is a good thing."
Comments (6)
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Francias Pillman on Feb 27, 2009 at 7:29 am
Refute my facts. Discuss the question at hand or don't speak.
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Nile on Feb 23, 2009 at 12:51 pm
Hey pill-man, you may want to take one. If it wasn't for mining you wouldn't even be in the Yukon!)
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Francias Pillman on Feb 20, 2009 at 2:15 pm
Positive? I'm negative because I want something to be done right? I don't care how many bonds they post, its all MONEY, MONEY, MONEY. I do support mining when its done right, but it never is. Look at Carmacks, one spill, the salmon are gone. Whats your little bonds going to do to bring the fish back? Are you going to sit there and chuck the money the river and the salmon magically know its safe it return?
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Michelle Redfearn on Feb 20, 2009 at 5:00 am
There you go again mouthing off about something that you seem to know very little about!
I don't know where you live but take a good look around you, there are very few things that a person uses on a daily basis that does not have some type of mining component to it - take your computer for example..... now do some research.
Mining companies now have to put up a bond before they beginning mining (a huge amount of money) so that disasters like Faro and others never happen again! Faro was many years ago and with the new mining rules, regulations and environmental agencies keeping a close watch a fiascos such as Faro will be prevented.
Now how about some positive suggestions rather then being negative all the time:)
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Arn Anderson on Feb 19, 2009 at 12:58 pm
Lets face it, the current mining regime does not work with or for the ENVIROMENT.
Lets rewrite a new mining legeslation that reflects all of our values because that mining resource belongs to ALL OF US not just some rich guy in Toronto whom profits of the mining.
I will say it again, the mining industry had its way for too long, its time we had our way with the mining industry.
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Francias Pillman on Feb 19, 2009 at 11:24 am
I'm glad to see the funding into more useless projects such as more FAROs. But hey, its only our enviroment, who cares, as long as fat palms are being greased.