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July 18, 2022
In keeping with its commitment to ensure residents of the province receive economic benefits from its natural resources, the Honourable Andrew Parsons, Minister of Industry, Energy and Technology, today announced that the Provincial Government has signed a benefits agreement with Marathon Gold Corporation for its Valentine Gold Project.
In accordance with the benefits agreement, Marathon has established project offices in the province and will provide Newfoundland and Labrador residents and suppliers full and fair opportunity and first consideration for employment and procurement opportunities in relation to the construction and operation phases of the project. This includes a commitment that during the construction and operation phases no less than 85 per cent of the project workforce will be provincial residents. In addition, Marathon will work with provincial educational institutions on developing mining courses to help build qualifications for residents of Newfoundland and Labrador. A summary of the benefits agreement is included in the Backgrounder below.
When completed, the Valentine Gold Project will be the largest gold mine in Atlantic Canada.
Located 80 kilometres southwest of Millertown in Central Newfoundland, the Valentine Gold Project is expected to generate more than $750 million in income to workers and businesses located within the province.
Construction of the mine and mill is expected to begin in the third quarter of 2022 (subject to federal environmental assessment release) and last for 24 months. According to the company, the Valentine Gold project will create approximately 11,000 person years of employment in the province, including an annual average of 725 persons. Based on an April 2021 Feasibility Study, the initial capital investment is estimated at $305 million, with the life-of-mine capital investment estimated at $662 million. Marathon Gold estimates this project will contribute nearly $3 billion to the provincial GDP, and approximately $400 million in incremental revenues to the Newfoundland and Labrador treasury.
Newfoundland and Labrador’s mining industry continues to experience significant growth and is a key economic driver. In 2021, mineral shipments were valued at $6 billion, the highest value on record for the province, and mining employment was the highest since 2013, generating over 8,000 person years of employment.
“Newfoundland and Labrador’s mineral industry continues to be a key economic driver for the province and a focus for investment attraction efforts. This benefits agreement ensures that residents will be the primary beneficiary of our resources as we continue to work collaboratively with another mining company to grow the industry here. I look forward to seeing this mine operational and the associated economic benefits for the region and the province.”
Honourable Andrew Parsons
Minister of Industry, Energy and Technology
“The Valentine Gold Project promises to be an important cornerstone of the Newfoundland and Labrador economy for many years, and will be particularly important to the communities of central Newfoundland. This Benefits Agreement reflects our commitment to maximizing the benefits that will flow to the province from the project, through employment, contracting, skills development, and the participation of groups traditionally under-represented in the mining industry. We are looking forward to final release from our federal Environmental Assessment, and the commencement of construction.”
President and CEO, Marathon Gold Corporation.
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Industry, Energy and Technology
Summary of Commitments
Benefits Agreement with Marathon Gold Corporation
Full and Fair Opportunity and First Consideration
Enhanced Employment Commitments
Project Management and Engineering
Education and Training
Research & Development
Gender Equity and Diversity
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