contents The Economy 2001
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The Province’s mining industry produces over a dozen mineral commodities and contributes significantly to the economy. The value of mineral shipments in 2000 totalled $972 million, an increase of 18% from 1999. As in previous years, iron ore accounted for over 90% of total shipment value. Other metals and non-metals (e.g., limestone, sand and gravel, dimension stone) accounted for the balance of shipments. Mining industry employment averaged 2,700 in 2000, on par with 1999.

Iron Ore
Iron ore production in 2000 totaled 22.3 million tonnes, the highest level since 1981 and an increase of 16.9% from 1999. Higher commodity prices boosted the shipment value of iron ore by 17.9% to over $900 million. Higher production and prices in 2000 were the result of improvements in the U.S. steel industry.

Gold
Almost 48,000 ounces of gold were produced in the Province in 2000. Richmont Mines Inc., the Province’s only gold producer, mines and mills gold at its Nugget Pond operation on the Baie Verte Peninsula. Richmont Mines purchased a second gold property, Hammerdown, near King’s Point in 2000 and began a test mining and milling program on this deposit.
 
 
 
  
Outlook for 2001
Iron ore production is expected to grow modestly despite the current economic slowdown in the United States.
Gold and silver output will increase due to the processing of a higher grade of ore.
Pending environmental approval and positive results of a feasibility study, construction will begin at the Duck Pond copper and zinc deposit with the objective of beginning commercial production in 2002.
Inco will continue its exploration program at Voisey’s Bay.
 
The results obtained during this initial phase of development are encouraging and Richmont Mines has initiated the work required to develop an underground mine. Richmont Mines will make a decision regarding the commencement of commercial production at Hammerdown in the first quarter of 2001. If activated, ore from the Hammerdown property will be trucked to the Nugget Pond facility for processing.

Exploration
Exploration expenditures in 2000 totalled $23 million, down from $32.3 million in 1999 and $48 million in 1998. The majority of exploration activity on the Island is centred in the Buchans area and is directed at base-metal targets. In Labrador, activity is focused on nickel in the Voisey’s Bay area and iron ore in western Labrador.

Voisey's Bay
Exploration expenditures at the Voisey’s Bay deposit were estimated to be $8 million in 2000, down from $19 million in 1998. Total proven, indicated and inferred reserves are estimated at 136.7 million tonnes. No formal talks between the Province and Inco regarding the development of the Voisey’s Bay deposit have been held since January 2000, however, the Province and Inco have recently indicated they are interested in re-opening discussions on the project.
 
Photo: Iron Ore Company of Canada
Outlook for the mining industry remains stable
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