Mon May 9, 2011 4:56pm EDT
* Quebec aims to attract C$80 billion in investment
* Province wants mines, renewable energy projects
* Quebec says it has incomparable mining potential
(Adds detail)
By Julie Gordon
TORONTO, May 9 (Reuters) - The Canadian province of Quebecplans to develop its huge frozen northern reaches into apowerhouse of mining and renewable energy, targeting C$80billion ($83 billion) of private and public investment.
Quebec's 25-year "Plan Nord," launched on Monday, envisagesfunding for infrastructure, mines and the development ofrenewable energy, taking advantage of an improving investmentclimate as the earth warms and polar ice melts.
Quebec says the region has abundant deposits of nickel,cobalt, platinum group metals, zinc, iron ore, ilmenite, gold,lithium, vanadium and rare-earth metals.
"Northern Quebec has incomparable mining potential,"Natural Resources Minister Serge Simard said in a release.
"The opening up of vast, previously unexplored territoriesis paving the way for unprecedented economic growth."
Plan Nord covers an area of 465,000 square miles (1.2million square km), roughly the size of the whole of SouthAfrica. The sparsely populated region has 11 mining projects indevelopment now and over C$8 billion in mining investment.
"(Plan Nord) will create or consolidate 20,000 jobs a year,on average, and generate C$14 billion in revenue for thegovernment and Quebec society," said Premier Jean Charest.
Quebec aims to attract C$47 billion in private and publicinvestment for renewable energy and C$33 billion for mining andinfrastructure. It will amend its mining regulations to ensurethe government gets "fair economic return" from its resourcesin the largely untouched region.
The province, which topped a Fraser Institute survey ofbest mining districts from 2007 to 2009, slipped to third afterit raised mining taxes unexpectedly last spring and is now infourth place on uncertainty over mining legislation.
"My own sense is that Quebec will remain sensible and thatif there are (mining tax) increases they won't be otherwordly,"said Fred McMahon, Vice President of International Research forthe right leaning think-tank. "But there is that danger in thecurrent atmosphere."
Gold producers Goldcorp (G.TO) and Agnico-Eagle (AEM.TO)have projects in the province, while steel giant ArcelorMittal(ISPA.AS) operates iron ore mines in Northeastern Quebec.
The government conceded that "the vastness of the northernterritory poses a daunting challenge from the standpoint ofaccess and transportation and communications infrastructure."
The region is also already home to more than 75 percent ofQuebec's hydroelectric power, with government-ownedHydro-Quebec alone producing 34,490 MW a year. Plan Nordenvisages an additional 3,500 MW of additional "green" power,primarily through hydroelectric dams, with a small amount beinggenerated through wind turbines and underwater generators.
Quebec also predicted environmental and social benefits,with 50 percent of the territory set aside for nonindustrialpurposes, including new provincial parks and environmentallyprotected areas.
The government will spend C$382 million over five years onhousing, health and education for local communities.($1=
.96 Canadian)(Additional reporting by David Ljunggren; editing by JanetGuttsman)