Two Manitoba investors spent more than $300,000 and secured an additional $1.3 million in market capital to support the development of the Godslith Claim, a world-class lithium deposit approximately 365 kilometres northeast of Winnipeg.
Those dollars will now go out of Manitoba, and the Minister of Mineral Resources is being sued for $5 million because of more than five years of delays in the permitting process and an inability on the part of the minister to properly consult affected stakeholders.
“The inability of the NDP to properly address the consultation issue and put in place a framework that supports mineral resource development in our province is hurting Manitoba. The industry is frustrated, the government is negligent and the result is dollars flowing to other provinces,” said Mineral Resources critic Cliff Cullen.
A soil sampling permit for the area was applied for in 2009. More than five years later, the permit sits in limbo because the NDP claims it is still consulting potentially impacted groups.
Over the past five years, Manitoba’s share of Canadian mining exploration expenditures has declined by 52 per cent and currently sits at 2.4 per cent of the national total. If Minister Dave Chomiak doesn’t do something soon, the consequences could be dire for mining communities.