MONTREAL . Quebec Premier Jean Charest says his government's massive effort to develop the resources of its northern territory has generated $6-billion worth of investment to date as companies accelerate growth plans faster than the province predicted.

Global mining giant Xstrata PLC is spending US$530-million to develop projects at its Raglan nickel mine in Nunavik, one of a number of corporate investments confirmed since Mr. Charest's Liberal government formally announced its North Plan in May 2011.

China's Jilin Jien Nickel said it will double investment in its project to extract nickel in Nunavik in northern Quebec to $800-million. And Vancouver-based Goldcorp Inc. is committing some $1.4-billion of capital to develop the Éléonore underground gold mine near Ell Lake, though much of that was announced before the North Plan's launch. Backed by the Cree nations of Wemindji and Eastmain, whose members will work in the facility, the mine is expected to yield 600,000 ounces of gold annually over its 15-year life.

Quebec has wooed business with its own pledge to spend billions of dollars to help develop critical infrastructure in the north. The government has set aside $1.2-billion from 2011-2016 alone to build roads, housing and other infrastructure and another $382-million for unspecified "social measures" to benefit northern communities.

Under the plan, the province has earmarked $500-million over the next five years to take equity participations in various projects with the objective of generating a return. Quebec owns 37% of Stornoway Diamond Corp. and has royalty rights representing 2% of the value of future production at the company's Renard diamond mine.

"All of this has happened quicker than we expected," Mr. Charest told a business audience gathered to get an update on the North Plan at Montreal's convention centre Monday.

Quebec ranks as one of the world's top 10 mining producers. But the majority of its mining potential above the 49th parallel remains unidentified, Mr. Charest said.

Northern Quebec produces all of the province's nickel, cobalt, zinc and iron ore. Rare earth metals used in key technologies such as smartphones and military equipment are also present as are gold and diamonds. The province's major hydro-electric dams are located there and other energy sources could be tapped.

The Premier, whose government remains deeply unpopular with francophone Quebecers according to polling results, has staked out the economy as his defining issue going into the next election. And the 25-year northern development plan, to sell Quebec's minerals and forestry products to emerging nations hungry for raw materials, is at its centre.

"There is very strong volatility in resource prices," Mr. Charest said. "But there will be an increasing global demand for them."

Former premier Jacques Parizeau blasted the North Plan last autumn, accusing the government of being too generous towards mining companies needing infrastructure and electric power. "I wouldn't quite say it's an 'open bar' but companies that have projects in the north have understood immediately what they can get from this," he said at the time.

The government's major challenge in building widespread support for the plan is bridging the gap between regions above the 49th parallel and those below it, said Yvan Loubier, an economist with National Public Relations who is working closely with developers on several projects. "In mining, that means not only creating jobs around extraction but also employment in transformation" of resources.

nvanpraet@nationalpost.com

http://www.financialpost.com/todays-paper/Quebec+harvests+billion+investment/6148280/story.html

http://www.republicofmining.com/2012/02/14/quebec-harvests-6-billion-in-mining-investment-by-nicolas-van-praet-national-post-february-14-2012/