Plan Nord is an “open bar” for mining companies, says former Quebec premier Jacques Parizeau

It’s “ridiculous” that Liberal ministers are using his suggestions to promote Plan Nord, Jacques Parizeau said May 5 in the Quebec daily newspaper, La Presse.

Quebec Premier Jean Charest and his minister of natural resources, Clement Gignac, said last week that “the file [mining royalties] was settled” for Parizeau, who said earlier that mining companies should pay higher royalties to Quebec under Plan Nord.

That’s because the Charest government recently raised the level of royalties that Quebec will collect from 12 per cent to 16 per cent, which should raise $4 billion for Quebec over the next 10 years.

But Plan Nord is still problematic, Parizeau said, because Quebec is giving internationally-owned mining companies free access to public services.

“Previously, companies looked at a project, saying they would pay for everything. Then, they would decide if they were interested or not. For example, the Nunavik Nickel Mine, which belongs to the Chinese, had to build a port in Ungava Bay, and they paid in full.”

This mine also provides its own power and infrastructure.

“Then the Plan Nord appears on the scene, and the government announces to anyone who will listen that it’s ready to help mining,” said Parizeau, citing the example of Adriana Resources, joint-ventured with a Chinese company to build its Lac Otelnuk iron mine project in Nunavik.

“All that the company requested in the beginning was for the government to give its access to Crown land so it could build a railroad,” Parizeau said.

Now Quebec plans to invest in a railway that will end north of Schefferville, calling on nationalist sentiments to support that move, he said: “You heard minister Gignac’s statement on this? He says we do not want a Chinese railway, we want a Québécois railway!”

Oceanic Iron Ore Corp. in Ungava Bay “like others, they were about to pay for everything. But with Plan Nord, they’re told we’re ready to provide all the services. It didn’t take long. They asked to be connected to the Hydro-Quebec and for a deepwater port They’re not crazy! ”

Parizeau says when new mining developments require public services, they should be ready to provide shares in their project to Quebec.

This would allow Quebec to participate in the profits from these companies as well as in their operations, Parizeau said.

The Plan Nord has led to an “open bar,” Parizeau told La Presse. “I have no objection to selling alcohol, but at least you should negotiate!”