The project of a generation: The Plan Nord

GLOBAL RESOURCESINVESTMENT CONFERENCE

STATIONERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 27-28 SEP 2011

www.ObjectiveCapitalConferences.com

The project of a generation: The Plan Nord Pierre Boulanger – Quebec Gov’t in London

Other sponsors & participating organisations:

GLOBAL RESOURCESINVESTMENT CONFERENCE 2011

Lead sponsor:

Media partners:

@Objectivelive

Global Mining Investment Conference 2011- London

The Project of a Generation Opening Northern Québec:

The Plan Nord

1

Global Mining Investment Conference

2011 - London

Mr. Pierre BoulangerAgent General

September 27th 2011

Québec Government Office in London

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An overview

• Québec is the largest province in Canada

• Area 1.6 million km2

• 6 X the UK

• Population 7. 9 million

• 23% of the population of Canada


3

Hydro-Québeca key advantage for Québec

Comparative electricity prices- large corporation rate


4

Québec mining Industry

• 2011 projected investments: 2.9 billion $ CAD, up 17 % over 2010

• Approximately 300 companies active

in exploration and exploitation

• 15 000 direct jobs

• 35 000 direct and indirect jobs

• 22 active mines producing:

– iron – zinc – nickel and copper– gold, etc.


5 Québec Government Office in London

• ‘Québec has the

world's fourth most

attractive jurisdiction

for mineral exploration

and development’.

The annual Survey of Mining Companies 2010/2011 by the Fraser Institute.

The annual Survey of Mining Companies 2010/2011

by the Fraser Institute.

Québec Government Office in London6

The annual Survey of Mining Companies 2010/2011

by the Fraser Institute.


The territory covered by Plan Nord

North of the 49th parallel

• 72% of Québec'sgeographic area(1.2 million km2, 4 X the UK)

• 1.6 % of the population of Québec (120 000 inhabitants)


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.


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

The objectives of the Plan Nord

1. Ensure community well-being and development

2. Harness Northern Québec's enormous economic potential

3. Make Northern Québec accessible

4. Protect the environment.


• 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).

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Ensure community well-being and development


Harness Northern Québec's enormous economic potential

• The territory that the Plan Nord covers has outstanding potential for development in the following sectors:

– Energy– Mining– Forestry

• The development of Northern Québec will engender investment, jobs and other spinoffs in the other regions.

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– Wildlife– Tourism– Bio-food


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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.


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.


Plan Nord: 3 500 additional MW of renewable energy

• 3 000 MW of hydroelectricity

• 300 MW of wind power

• 200 MW from other renewable sources─ Underwater generators

• All told: ─ 25 $ billion in investments

─ The equivalent of 75 000 jobs (man-years)

The plan reflects our determination to make Québec the world leader in clean energy.


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


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.


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


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


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).



Transport infrastructure

• 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

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Protect the environment


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.


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.


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.


1 Heddon Street, London W1B 4BDUnited Kingdom+ 44 (0) 20 7766 5900www.quebec.org.uk

Québec Government Office

Thank you!

The project of a generation: The Plan Nord

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