Objective Capital's Global Resources Investment Conference 2011
Stationers' Hall, City of London
27-28 September 2011
Day 1- Session 4: Resource nationalism – balancing politics and mining
Speaker: Pierre Boulanger, Quebec Gov't in London
4. Global Mining Investment Conference 2011 - London The Project of a Generation Opening Northern Québec:The Plan Nord Mr. Pierre Boulanger Agent General September 27th 2011 Québec Government Office in London 1
19. The annual Survey of Mining Companies 2010/2011by the Fraser Institute. Québec Government Office in London 6
20. The annual Survey of Mining Companies 2010/2011by the Fraser Institute. Québec Government Office in London 7
21. The territory covered by Plan Nord North of the 49th parallel 72% of Québec'sgeographic area(1.2million km2, 4 X the UK) 1.6 % of the population of Québec (120 000 inhabitants) Québec Government Office in London 8
22. THE PLAN NORDThe vision An exemplary sustainable development project that integrates energy, mining, forest, bio-food, tourism and transportation development, the development of wildlife, environmental protection and the preservation of biodiversity. It will foster development for the benefit of the communities concerned and Québec as a whole, in a spirit of respect for cultures and identities. Québec Government Office in London 9
23. An approach centred on aninnovative partnership Outcome of over 60 meetings in which nearly 450 people participated in order to develop the approach: The government, communities, the private, institutional and environmental sectors. The Plan is a project that will span 25 years and comprise five five-year action plans 47 billion $ CAD for renewable energy 33 billion $ CAD for mining sector and infrastructure ———— Total: 80 billion $ CAD Québec Government Office in London 10
24. The objectives of the Plan Nord Ensure community well-being and development Harness Northern Québec's enormous economic potential Make Northern Québec accessible Protect the environment. Québec Government Office in London 11
25. Ensure community well-being and development Numerous challenges to be met. Some examples: Establish multi-purpose centres to offer occupational training Establish a northern home base for Hydro-Québec employees Build 840 housing units in Nunavik Improve telecommunications infrastructure for telemedicine Develop higher education services (training and research). Québec Government Office in London 12
26. Harness Northern Québec's enormous economic potential The territory that the Plan Nord covers has outstanding potential for developmentin the following sectors: Energy Mining Forestry The development of Northern Québec will engender investment, jobs and other spinoffs in the other regions. Wildlife Tourism Bio-food Québec Government Office in London 13
27. Projected employment and economic spinoffs 20 000 jobs a year (500 000 man-years over 25 years) 14 billion $ CAD in revenues for the government over 25 years 162 billion $ CAD added to Québec’s GDP during that time. Québec Government Office in London 14
28. Hydroelectric development in Northern Québec 24 000 MW are already installed in the territory that the Plan Nord covers. Some 97% of the proposed 4 500 MW under the Québec Energy Strategy 2006-2015 are located in the territory that the Plan Nord covers. Québec Government Office in London 15
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30. The equivalent of 75 000 jobs(man-years)The plan reflects our determination to make Québec the world leader in clean energy. Québec Government Office in London 16
31. Mining development is central to the Plan Nord Existing production in Northern Québec Nickel Cobalt Platinum group metals Zinc Iron ore Ilmenite Gold Other metals and minerals Diamonds Uranium Lithium Vanadium Rare- earth metals Québec Government Office in London 17
32. Mining development is central to the Plan Nord Ensure mining development is geared to sustainable development. Mining operations in the sector: Generated nearly 1 billion $ CAD in investments in 2009 Account for over 35 000 jobs in Québec, i.e. 10 000 in the territory that the Plan Nord covers and 25 000 in the other regions. Eleven new projects will be under development in the territory that the Plan Nord covers in the coming years, which will generate over 8 billion $ CAD in investments and create 4 000 jobs. Québec Government Office in London 18
33. Recent mining investment announcements ‘Arcelor Mittal launches 2.1 billion $ CAD investment and the creation of 8 000 jobs’. May 20th, 2011 ‘Rio Tinto subsidiary to invest 800 million $ CAD in Québec facilities’. May 27th, 2011 ‘Jilin Jien Nickel Industry to invest an additionnal 400 million $ CAD in Kangiqsujuaq for total of 800 million $ CAD’. August 29th, 2011 Québec Government Office in London 19
34. Other economic aspects of the Plan Forestry Reforest Optimise harvesting Promote northern architecture Wildlife resources Migrating caribou herds Renowned fishing and salmon rivers 186 outfitters in operation Tourism Clientele seeking new destinations Respect for nature and cohabitation with northern peoples New infrastructure Bio-Food 1.5 million hectares of arable land Development of industry (blueberries, etc.) Northern greenhouses Québec Government Office in London 20
35. Société du Plan Nord: make northern Québec accessible Integrated development of the transport network Establishment of partnerships with investors who require transport infrastructure Projects are already under way or impending: Upgrading of northern airports Construction or rebuilding of four major roads Studies to link the North from the 55th parallel to the South (Kuujjuaq and Whapmagoostui-Kuujjurapik). Québec Government Office in London 21
37. 50% of the territory that the Plan Nord covers will be devoted to purposes other than industrial ones, environmental protection and safeguarding biodiversity The government will adopt legislation following consultations Increase the network of protected areas to reach the target of 12% by 2015 Over 31 000 km2 will be added to the network Québec Government Office in London 23 Protect the environment
38. A government corporation to carry out an ambitious plan Establishment of the Société du Plan Nord, with a mandate, in particular, to: Coordinate public investment in strategic infrastructure and in the social sector Coordinate the implementation of projects included in the first five-year action plan Negotiate financing packages in respect of the projects for which it is responsible Offer local and First Nations communities guidance and support to carry out their own community and social development projects. Québec Government Office in London 24
39. The Plan Nord financial framework Establishment of the Fonds du Plan Nord, announced in the 2011-2012 Budget Realisation of the first five-year action plan: investments totalling 2.1 billion $ CAD 1.2 billion $ CAD for infrastructure 382 million $ CAD for socioeconomic measures 500 million $ CAD allocated to Investissement Québec for equity participations. Québec Government Office in London 25
40. Benefits for all: Quebecers and investment partners Over the next 25 years, the Plan Nord will bring the following benefits: A minimum of 80 billion $ CAD in private and public investments 20 000 jobs, on average, created or maintained each year, equivalent to 500 000 man-years The investments will add 162 billion $ CAD to Québec's GDP, a significant impact. Québec Government Office in London 26
41. Thank you! Québec Government Office 1 Heddon Street, London W1B 4BD United Kingdom + 44 (0) 20 7766 5900 www.quebec.org.uk