LETTER TO THE EDITOR — Manitoba extends welcome to new

Your editorial “Exodus” (T.N.M., June 6/94) suggests a number of reasons for a decline in exploration in Canada and, to your credit, some potential solutions.

My concern is your reference to junior exploration companies having difficulty advancing a project in Manitoba. I would like to provide some current information on opportunities in Manitoba.

First, the Whitehorse Mining Initiative (WMI) was endorsed by Manitoba’s former minister of energy and mines, James Downey, at the meeting in Whitehorse, Y.T. Subsequently, numerous chief executive officers have credited his leadership with the launch of WMI.

Second, Manitoba has had two successful exploration incentive programs — the Prospectors Assistance Program and the Mineral Exploration Incentive Program — to provide grant support to qualifying exploration campaigns by juniors.

The 1994 Manitoba budget introduced several relief initiatives specifically aimed at mining, including relief of sales tax on electricity for the mining and metal refining industry, a doubling of the processing allowance and a 7% capital investment tax credit on new mine investments. These changes move new mining investments in Manitoba from the province with the highest taxes to the fourth lowest in Canada.

These most recent initiatives build upon previous incentives, such as the New Mine Tax Holiday legislation.

All in all, since 1988, Premier Gary Filmon’s government has steadily improved provincial policies and tax structures to encourage mining investment in Manitoba. And it is working, as witnessed by increasing exploration and new mines coming into production.

The positive suggestions in your editorial are endorsed by Manitoba and have already been activated.

Donald Orchard

Manitoba Minister

of Energy and Mines

Winnipeg, Man.