Minister Rickford Announces Approval of Majority Ownership of Proposed Uranium Mine in Newfoundland and Labrador

OTTAWA, June 22, 2015 /CNW/ - The Honourable Greg Rickford, Canada's Minister of Natural Resources, today announced that the Harper Government  has approved an application by Paladin Energy Ltd., of Australia, for majority ownership of a proposed uranium mine in Newfoundland and Labrador.

The proposal is supported by the governments of Newfoundland and Labrador, Saskatchewan and Australia, as well as Canada's uranium mining sector. Canada welcomes foreign investment in our uranium mining properties under the terms of the Non-Resident Ownership Policy in the Uranium Mining Sector (NROP).  

Under the NROP, exemptions are permitted to the requirement for 51 percent resident ownership in cases where it can be clearly demonstrated that Canadian partners cannot be found. Paladin has demonstrated that there are no Canadian partners that would be interested in leading the development of the proposed Michelin mining project in the Central Mineral Belt of Labrador.

The proposed project was subject to a national security review and no concerns were identified.

Paladin estimates that the proposed Michelin project could create up to 750 jobs during the construction phase and up to 350 jobs during the operational phase, with additional benefits to the local Aboriginal communities through investments in infrastructure development and training.

Any proposal by Paladin to develop a uranium mine in Newfoundland and Labrador is subject to environmental and community impact assessments by the Canadian Nuclear Safety Commission (CNSC) and other relevant authorities. The CNSC regulates all uranium mining and processing facilities in Canada to protect human health and safety, security and the environment.

Quick Facts

• Canada's nuclear industry employs more than 30,000 people including 5,000 in uranium mining. About 45 per cent of uranium mine-site jobs are held by Aboriginal people.
• Canada is the world's second largest exporter of uranium with exports valued at more than $1 billion per year.
• Nuclear energy is a key contributor to Canada's low-emissions energy mix and accounts for about 15 percent of the country's electricity and more than half of Ontario's electricity.
• Nuclear energy production in Canada generates about $5 billion in annual revenues.

Quotes

"Canada is a secure, reliable and responsible producer and supplier of energy that is making a growing contribution to global energy security. Our plan for Responsible Resource Development is creating Canadian jobs and long term prosperity, while reinforcing our leadership in the production of non-emitting energy."

The Honorable Greg Rickford
Minister of Natural Resources
Government of Canada

"Canada is a highly respected jurisdiction and an important contributor to global uranium production, setting leadership standards for operation in this sector.  Paladin is delighted to have achieved this foreign ownership exemption, overcoming a huge hurdle for us. We thank the Canadian Government for this historic decision and, more importantly, the trust those authorities involved have shown in Paladin which we take very seriously.  Further, by granting this exemption the government has also reinforced the spirit of reciprocity that anchors investment and trade relations between Australia and Canada."

John Borshoff
Managing Director/Chief Executive Officer
Paladin Energy Ltd.

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SOURCE Natural Resources Canada

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