Muskrat power will be profitable, Minister Derrick Dalley says

James
James McLeod
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Says power will be available if needed for mining development

Natural Resources Minister Derrick Dalley had a clear message to members of the mining industry Thursday: we’ll have the power for you when you need it.

Derrick Dalley

Dalley was speaking about a regulatory filing in Nova Scotia, which will see the province provide energy for more than two decades at market prices.

“The Muskrat Falls project will be an important source of power for mining developments,” Dalley said. “So everyone is clear: while we’re waiting for some of that development and we don’t need that power, we’re going to sell it. We’re going to make money for Newfoundlanders and Labradorians.”

Speaking to reporters afterwards, Dalley explained that the “firm” constant power generated by Muskrat Falls is available for domestic use — for mines and industrial development, as well as residential and commercial demand on the island of newfoundland.

“What we’re talking about there is firm power. Beyond that, there is an average supply of power that gets created every year as a result of rain and snow,” Dalley said. “That excess power — based on 50 years of science and study — tells us that we’re going to have surplus power that we can make available to the markets. It just happens that the market is right in Nova Scotia.”

Dalley said that the province is expecting a lot of development in the mining sector in the coming years — as much as $10 billion in investment.

“The other important thing about mining is that it’s out in a lot of our rural communities,” Dalley said. “It’s providing employment to Newfoundlanders and Labradorians across the island, so it’s significant. It’s big, and there’s tremendous opportunity in the future.”

Dalley also talked up the government’s recent trip to China, saying that it’s driving capital investment in the mining sector.

“When you look at the growing economy in China, they have funds that they want to invest around the world. It’s a great market and it’s a great opportunity,” he said. “The mining activity right now, the mining prospects are being fuelled by foreign investment, and mostly it’s Chinese investment.”

On Monday, politicians will return to the House of Assembly for the fall sitting.

Last year, the fall was dominated by legislation related to Muskrat Falls, and MHAs held the longest filibuster in provincial history in the week leading up to Christmas.

This year, Dalley said, he expects that Muskrat Falls will be a major source of discussion, but there’s no big legislation in the works.

 

jmcleod@thetelegram.com

Twitter: TelegramJames

 

Geographic location: Nova Scotia, China

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Recent comments

  • Yo mama
    November 03, 2013 - 15:15

    Muskrat falls is THEE answer for future power generation, and NO ONE can logically argue that fact, the one and only problem, is the cost. The sole contributor for this megaproject should be our oil revenues. There's a saying, "Make hay while the sun shines" well there's no more perfect example than right here. While the oil is here, use it to prepare for when it's gone, pretty simple I think. Being in the oil industry I am truly practicing what I preach, new house, ICF construction, spray foam, heat pump, radiant heating through out, and trying to decide between solar and wing power generation....electrical panel is all ready for it. I realize this is quite expensive and I'm blessed to be able to afford it, investing more NOW for future savings....NL gov't should be doing the exact same.....Lord knows THEY can afford it.

  • Robb
    November 01, 2013 - 08:35

    Well, you know your going to rile the boo-birds when you come out with an announcement like this...but it's these same boobirds who would keep us burning oil for electricity...??..they obviously cannot see past the end of their noses, except for their own agendas....they don't give a crap about anyone paying more for electricity...they just want to discredit the gov't for this wonderful project, and are upset it's not their political party doing it....so lay off the Muskrat bashing with your made-up information, makes you look silly.

    • gord
      November 01, 2013 - 23:41

      Go get some educating!

  • BI
    November 01, 2013 - 07:45

    Powerful to who - the government not the people for sure.

  • H Jefford
    October 31, 2013 - 22:24

    Canada has 10+ nucleur power plants, like the one that caused all the problems a few years ago in Europe , I am not sure if was in Korea or Japan? But there is one of them power plants like that is in Quebec this can be checked online I think Canada Has 9 of them, The safest most reliable source and Cleanest source of power in the world is created by the Harnessing the force of a Great Water Falls like the Upper Ghurchill Falls And The Muskrat Falls , The force of water when harnesses which ran for millions of years , Will run for ever when Harnessed turning the power turbines for ever the Cleanest, Safest,Cheapest To Operate when Built,and Most Reliable source of power in the world The oil fired Power generating plant in Holyrood ( The DUFFS HYDRO PLANT ) is listed as one of the top 10 dirty air poluters in the WORLD, THIS ALSO CAN BE FOUND ONLINE ( BUT THE force of a water falls when harnessed will turn the HYDRO POWER TURBINES '"FOR as LONG as WATER RUNS AND GRASS GROWS ' AS THE old SAYING GOES.

    • gord
      November 01, 2013 - 23:51

      Great opinion but I don't think the provincial ratepayers can afford or want to pick up the tab while the profits if any flow to Nalcor. I think there is a high level of mistrust here.

  • H Jefford
    October 31, 2013 - 22:23

    Canada has 10+ nucleur power plants, like the one that caused all the problems a few years ago in Europe , I am not sure if was in Korea or Japan? But there is one of them power plants like that is in Quebec this can be checked online I think Canada Has 9 of them, The safest most reliable source and Cleanest source of power in the world is created by the Harnessing the force of a Great Water Falls like the Upper Ghurchill Falls And The Muskrat Falls , The force of water when harnesses which ran for millions of years , Will run for ever when Harnessed turning the power turbines for ever the Cleanest, Safest,Cheapest To Operate when Built,and Most Reliable source of power in the world The oil fired Power generating plant in Holyrood ( The DUFFS HYDRO PLANT ) is listed as one of the top 10 dirty air poluters in the WORLD, THIS ALSO CAN BE FOUND ONLINE ( BUT THE force of a water falls when harnessed will turn the HYDRO POWER TURBINES '"FOR as LONG as WATER RUNS AND GRASS GROWS ' AS THE old SAYING GOES.

  • H Jefford
    October 31, 2013 - 22:17

    Canada has 10+ nucleur power plants, like the one that caused all the problems a few years ago in Europe , I am not sure if was in Korea or Japan? But there is one of them power plants like that is in Quebec this can be checked online I think Canada Has 9 of them, The safest most reliable source and Cleanest source of power in the world is created by the Harnessing the force of a Great Water Falls like the Upper Ghurchill Falls And The Muskrat Falls , The force of water when harnesses which ran for millions of years , Will run for ever when Harnessed turning the power turbines for ever the Cleanest, Safest,Cheapest To Operate when Built,and Most Reliable source of power in the world The oil fired Power generating plant in Holyrood ( The DUFFS HYDRO PLANT ) is listed as one of the top 10 dirty air poluters in the WORLD, THIS ALSO CAN BE FOUND ONLINE ( BUT THE force of a water falls when harnessed will turn the HYDRO POWER TURBINES '"FOR as LONG as WATER RUNS AND GRASS GROWS ' AS THE old SAYING GOES.

    • Joe
      November 01, 2013 - 09:56

      J H by, you must think your an expert. People who can will avoid this high power and thus power demand at a high rate will be less than Nalcor thinks. This excess will have to be sold at the market rate 5cents. The people who must pay these rates are those on Social Assistance and the taxpayer pays their bills. Who is the real winner. Also there are or will be cheaper ways of producing green power than Muskat Falls.

  • Corporate Psycho
    October 31, 2013 - 19:01

    Danny is going to get his cheap power come hell or high water.

  • Dolf
    October 31, 2013 - 15:54

    I bet those mining companies won't pay the same rates and I will. And it bothers the hell out of me China owns a huge percentage of USA real estate. Not sure about Canada but you can bet they're here too.

  • Maurice E. Adams
    October 31, 2013 - 15:51

    NL ratepayers will pay 30 cents to produce MF power and Nalcor will lock us into selling most of it to NS for 5 cents (great profit making). And if Quebec stops the Water Management Agreement there will not even be enough power to replace Holyrood (yet we will still be contracted to provide NS more than 3 times what Muskrat can produce --- or pay damages).

  • Terry
    October 31, 2013 - 15:07

    Well it should be after the gouging the taxpayers are getting through taxes and then higher hydro rates, when do I get my share of the profitability......never so I suspect. The nerve to come out and say it is going to be profitable annoys me to no end.