Mineral programs axed under new federal budget

Under the recent federal budget, Ottawa will no longer renew federal-provincial Mineral Development Agreements (MDAs) when they expire.

The decision is part of the government’s plan to reduce spending and combat the ever-growing federal deficit, estimated to reach $35.5 billion in 1992-93. The budget contained no current spending cuts, only the extension of spending cuts and limits announced in the December, 1992, Economic and Fiscal Statement.

MDAs are in place in every province and territory except Prince Edward Island. They carry terms of three-to-six years and federal funding levels range from $5 million to $50 million. The first MDA to expire will be the one with Newfoundland, in March, 1994.

Robert Keyes, vice-president of economic affairs with the Mining Association of Canada, feels the cutbacks in MDA funding will especially hurt small provinces since they lack well-developed mining infrastructures. He said funding for other programs, such as Mine Environment Neutral Drainage (MEND) and Eastern Quebec Prospectors, may also be in jeopardy.

Meanwhile, the Ontario Ministry of Northern Development and Mines has announced it will trim spending by $14.5 million in 1993/94. The proposed cuts include:

— Cancellation of the Ontario Geoscience Research Grants program which provides funding for university-based geoscience research. (Researchers in mid-program will have their grants continued for this year.) — Elimination of some head office functions and reductions in field office operations.

— Closure of the Temiskaming Testing Laboratory.

— Cancellation of the proposed Mine Reclamation Centre in Elliot Lake.