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QUEBEC — Quebec mining companies are reeling over proposed legislation that would require them to produce studies on the feasibility of processing ore in the province before proceeding with a new project.
The requirement is part of the new Mining Act tabled on Wednesday, in which the Parti Québécois minority government is seeking to maximize the economic spin-offs from major new mining projects.
“Processing [ore] could create three to four times more jobs than simple extraction,” Natural Resources Minister Martine Ouellet said. “We are aware that you can’t process 100 per cent of the ore mined in Quebec. But between what is being processed now and 100 per cent, there is a great deal of room for improvement.”
The Quebec Mining Association said it is not against promoting secondary industries around mining projects. But it lashed out at a plan it said would create an additional financial burden in a province that, according to the lobby group, has the highest production and transportation costs in the country.
“We aren’t against processing the ore here, but companies need incentives. What we are seeing here are more coercive measures,” said the association’s president and director-general, Josée Méthot. “This is a requirement to conduct studies, which represents an additional burden for mining companies seeking to invest here.”
Ms. Ouellet said four other provinces, including Ontario and Newfoundland and Labrador, have similar requirements and that the PQ government would not hesitate to demand that companies process ore in Quebec.
The proposed legislation is a bid to get around provisions in the current law that allow companies to override municipal by-laws and proceed with projects wherever they like. It would let local authorities define zones where mining would be excluded. The minister would retain the power to allow projects to proceed if the municipal development plans failed to meet provincial objectives that have yet to be defined.
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