Canadian Prime Minister announces $7B electricity project, Labrador mining upside

Canada’s Prime Minister Mark Carney was in St. John’s, Newfoundland Monday to announce what the federal government is calling, “the largest clean energy investment in North American history.”

Joined by Newfoundland and Labrador Premier Tony Wakeham and Quebec Premier Christine Fréchette, Carney revealed a C$10 billion ($7.2 billion) plan to expand the Churchill Falls generating station, nearly tripling its current capacity. 

“When we master energy, we master our destiny. Through cooperative federalism, we are unlocking our immense potential,” Carney said.

Located about 245 km from Labrador City, Churchill Falls is the second-largest hydroelectric station in Canada. The investment will go toward current station upgrades and the construction of the Gull Island hydroelectricity project between Churchill and Muskrat Falls. More than 600 km of transmission lines will be built to connect to two stations and deliver electricity to Quebec.

Labrador mining

In a news release, Ottawa said the transmission expansion will support mining operations in the Labrador Trough region.

“Newfoundlanders and Labradorians will finally be the primary beneficiary of our own resources, with complete control over whether we use our power to develop our economy or sell to outside markets,” Wakeham said.

Through Natural Resources Canada’s (NRCan) First and Last Mile Fund (FLMF) the federal government is providing C$2.3 million ($1.65 million) to complete a study for transmission lines and stations needed to bring more power to the Labrador west area.

This expansion would benefit the Kami iron mine and Lac Knife graphite mine, and other projects in the region.