Quebec Unveils Ambitious "Plan Nord" to Develop Power and Mineral Resources

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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Quebec wants to develop tens of billions of dollars of Metals & Minerals and Electric Power projects in northern portions of the province over the next 25 years. But despite extensive outreach efforts by the provincial government, the bold plan has drawn fire from a First Nations tribal leader and some environmental organizations.

Plan Nord, announced May 9 by Quebec Premier Jean Charest, would encompass more than 1.2 million square kilometers--roughly 72% of the province's land mass. By comparison, the area covered by Plan Nord is roughly twice the size of the state of Texas. Over a quarter-century, the plan envisions about $83 billion in public and private investments, mainly to develop mining and renewable energy projects. If implemented as planned, Plan Nord would create 500,000 jobs (20,000 jobs per year for 25 years), generate $14 billion in revenue for the provincial government, and boost the province's gross domestic product (GDP) by $162 billion.

The bold plan to develop the resource-rich land north of the 49th Parallel can be implemented without damaging the area's ecosystem and natural beauty, the provincial government said in unveiling the plan. "The Plan Nord is one of the most ambitious projects that Québec has undertaken," the government said in a statement. "At all stages of the planning and realization of the projects put forward under the Plan Nord, the protection of the environment and northern ecosystems will be at the forefront of decision-making."

The Quebec government held dozens of outreach meetings with Aboriginal and local communities over the past 18 months in an effort to identify issues of concern and seek consensus, it said. "Through its representative, participatory approach, the Plan Nord will be a unique model of sustainable development that reconciles social and economic development and environmental protection," the provincial government said.

Click here to see a map of the area covered by Plan Nord, courtesy of Quebec's Ministry of Natural Resources and Wildlife (1MB pdf).

Over the next 25 years, Plan Nord calls for a total of about $83 billion in public and private investments: roughly $48 billion to develop renewable energy and $35 billion to develop mining and build associated infrastructure such as roads and ports.

The plan seeks to develop 3,500 megawatts (MW) of renewable energy: 3,000 MW of hydroelectric generating capacity, 300 MW of windpower and 200 MW of other resources, mainly underwater generators.

Plan Nord also seeks to develop the province's reserves of gold, diamonds, nickel, cobalt, platinum, iron ore, zinc and other precious and industrial metals. The province also has deposits of lithium and rare earth minerals that are used in batteries and renewable energy projects. Plan Nord envisions 11 new mining projects.

Industrial Info is tracking 53 active Metals & Minerals projects in Quebec's Zone 3, which carry a total investment value (TIV) of about $28 billion. Quebec's Zone 3 roughly corresponds to Plan Nord's geography. The largest active planned projects include:

• The Riviere-Koksoak grassroot iron ore mine and railway transportation system, with a total investment value (TIV) of $8.2 billion and a 2013 kickoff date
• The Schefferville grassroot taconite mine, with a TIV of $1.7 billion and a 2014 kickoff date
• Expansion of the Fermont Mount-Wright above-ground iron ore mine and smelter, a $1.6 billion project scheduled to kick off in 2014

Industrial Info also is tracking four renewable electricity projects scheduled to kick off in Quebec's Zone 3. These projects have a TIV of $4.2 billion. These projects are:

• The 768-MW grassroot Eastman 1A Hydroelectric Station, valued at $2.8 billion
• The 150-MW grassroot Eastman Sarcelle Hydro Station, valued at $675 million
• The 150-MW grassroot Saint-Luc Massif du Sud Windfarm, with a TIV of $350 million
• The 260-MW grassroot Havre-Saint-Pierre Romaine 1 Hydro Powerhouse, with a TIV of $330 million

Despite Quebec's efforts to build consensus with First Nations groups and environmentalists, one First Nations leader, Chief Ghislain Picard, chief of the Assembly of the First Nations of Quebec and Labrador (AFNQL), opposes the plan. "I refuse to participate in a process which does not yet adequately meet the expectations of all concerned First Nations," he said a press release. "How can the Government launch the Plan Nord without having tried to obtain the consent of all First Nations involved? This process is incomplete and very disappointing," said Picard. The AFNQL is the regional organization regrouping the 43 Chiefs of the First Nations of Quebec and Labrador.

A recent article in Fortune magazine, titled "In Quebec, an Economic Plan for an Environmental Mutation," discussed Plan Nord in the context of possible changes to global shipping channels that could open up as polar ice caps melt due to global warming. "One result of global warming could alter the face of commerce in North America and Asia: the opening, thanks to the melting polar ice caps, of a new maritime shipping route through the Arctic ocean," the Fortune article began. "The route would connect Asia with Northern Canada and might open up in the next 20-30 years." Plan Nord "could turn an apparent calamity--the melting of the ice caps--into a sustainable economic opportunity that cuts thousands of miles off of the Pacific Ocean trade routes that ships are currently plying."

In an interview with Fortune, Quebec Premier Charest said: "We're building a parallel canal to the Panama Canal for Chinese ships so they can accelerate the transport of goods. Climate change is going to change this whole economy." Given that, he asks, "How do we develop?"

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