December 13, 2024 – St. John’s, NL:  The recent signing of a Memorandum of Understanding (MOU) between the Government of Newfoundland and Labrador and Quebec marks a pivotal moment for the mining sector. The agreement to replace the 1969 Upper Churchill Contract, combined with the development of the Gull Island project and an expansion of the Churchill Falls plant’s capacity, is poised to have a positive impact on the industry and serve as a vital economic catalyst for new and expanding developments in Labrador.

Access to clean energy is essential for the mineral resources sector, enabling it to advance projects, expand operations, and achieve decarbonization goals. Under the new agreement, Newfoundland and Labrador Hydro will gain access to 1,990 MW of power—a significant increase to its current capacity. This increase is crucial given the significant mineral potential and ongoing development activities in Labrador, and it has been warmly welcomed by the mineral resource community.

The mineral industry plays a key role in Newfoundland and Labrador’s economy, projected to provide approximately 8,000 person-years of employment in 2024 and contributing 7.3 percent to the provincial GDP. Enhanced power availability for industrial development in Labrador will further stimulate economic growth, ensuring prosperity for future generations, including the members of Mining NL.

“On behalf of Newfoundland and Labrador’s private sector mining and mineral resources community, I extend our congratulations to the negotiating team on this significant announcement,” stated Amanda McCallum, Executive Director of Mining Industry NL. “The additional energy in Labrador is essential for advancing and expanding mining projects, fostering a robust critical mineral supply chain. Our members are eager to leverage this opportunity to enhance infrastructure and transmission capacity, facilitating the growth of industrial mining projects.”

MEDIA CONTACT

Amanda McCallum

info@miningnl.com

About Mining Industry NL

Mining Industry NL is a not-for-profit membership industry association that represents all sectors of the mineral industry. As the voice of the billion mineral resources sector in Newfoundland and Labrador, Mining Industry NL’s mission is to help shape and grow the industry for the economic and social benefit of the province. MINL promotes NL’s mineral potential, attracts investment and builds strong relations throughout the entire mining value chain, including exploration (prospecting community and junior exploration companies), mining (mine developers and producers) and supports (supply and service firms). For more information, visit miningnl.com.

 

Government of Newfoundland and Labrador and Quebec