PLAN NORD

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Plannord.gouv.qc.ca

PLAN NORD

québec together the project of

a generation

InvEST In quÉBEc

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Message froM the PreMier of Québec

I invite you to discover Québec and invest in it. America’s only majority French-speaking society boasts exceptional economic vibrancy.

Québec is one of the areas in the world to emerge most successfully from the economic crisis. Thanks to massive investments in modernizing our infrastructure and developing our renewable energy, we have created and protected thousands of jobs and put Québec on the path to sustainable prosperity.

Today, Québec is sailing full speed ahead with many projects on the books, including the Plan Nord, a high-profile project unlike any other that aims to promote the mineral and energy potential of an immense area of land located north of the 49th parallel.

Come join us and our partners in implementing the world’s largest sustainable development project.

Jean Charest 3

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Québec is located in northeastern North America. It is the largest Canadian province with a geographic area of 1.7 million km² and the only province with a French-speaking majority. Over 80% of its 8 million inhabitants speak French. Québec is known for its European charm. Its capital, Québec City, with its fortifications, is one of the world’s most beautiful cities and its historic district a UNESCO world heritage site.

Québec is traversed by the St. Lawrence River, one of the largest waterways in the world. It connects to the Atlantic Ocean in the East and in the West to the St. Lawrence Seaway, which links Québec with the Great Lakes. The intermodal platform of the Port of Montréal, the metropolis of Québec, provides the shortest route between Europe or the Mediterranean and the American Midwest.

integrated into the

North american economy

n Québec is strategically situated through the North American Free Trade Agreement (NAFTA).

n A pool of 130 million consumers and major urban centers such as New York, Boston, and Toronto is located within a 1,000 kilometer radius of Montréal.

The major Plan Nord project is taking place on land north of the 49th parallel. It is an immense territory whose geographic area is twice that of France, over four times that of the United Kingdom, and nearly twice that of Texas, the second largest American state after Alaska.

The project consists of promoting the mining, energy, forestry, wildlife, tourist, and biofood potential of this vast territory in keeping with sustainable development principles.

Québec at a gLaNce

Québec ranks 18th in the world in terms of surface area.

Tracé de 1927 du Conseil privé (non définitif) Baie d'Hudson

Baie James

Baie d'Ungava

Mer du Labrador Détro

it d'Hudson

Fleuve Saint-Laurent

Golfe du Saint-Laurent Tracé d

e 19

27 du C

onseil p

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Salluit

Boston Ottawa

Detroit Toronto

New York

Saint John

Washington D.C.

Québec Montréal Radisson

Kuujjuaq

Sept-Îles Chibougamau

Québec and the Plan Nord Area in North America

Mexique États-Unis Canada

Area covered by the Plan Nord

* Distance euclidienne

0 500 km

Production

Ministère des Ressources naturelles et de la Faune Direction générale adjointe de l'information géographique Note : This document has no legal standing.

International border Interprovincial border (non-definitive)

Québec – Newfoundland and Labrador border

Source Data

Territorial divisions MRNFOrganization Year 2010 Tracé de 1927 du Conseil privé

(non définitif) Baie d'Hudson

Baie James

Baie d'Ungava

it d'Hudson

e 19

27 du C

onseil p

rivé (no

n définitif)

Salluit

Boston Ottawa

Detroit Toronto

New York

Saint John

Washington D.C.

Kuujjuaq

0 500 km

Production

Source Data

Territorial divisions MRNFOrganization Year 2010

Tracé de 1927 du Conseil privé (non définitif) Baie d'Hudson

Baie James

Baie d'Ungava

it d'Hudson

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27 duil priv Cseon

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Boston Ottawa

Detroit Toronto

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Saint John

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Production

Source Data

Territorial divisions MRNFOrganization Year 2010

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5 The Plan Nord aims to structure an immense 1.2 million km² region

that accounts for 72% of Québec’s geographic area. It will be an exemplary sustainable development project that will benefit the communities in this vast region, as well as all of Québec. It will also foster new scientific and research partnerships in view of better managing climate change. Half the land will be sheltered from industrial activities and dedicated to eco-responsible tourism, conservation activities, and biodiversity knowledge acquisition.

The project will span 25 years. During this period, $80 billion will be invested and 20,000 jobs created or solidified on average every year.

Québec is inviting world-class investors to join the many other partners interested in taking part in the Plan Nord. The potential is great. Québec is already a mining powerhouse, ranking as one of the world’s top ten producers. Yet only 40% of the mining potential has been identified. With regard to energy, Québec is the fourth largest producer of hydroelectricity in the world. But the development potential is as high as current capacity.

In view of promoting public-private partnerships, the gouvernement du Québec has created a public corporation, Société du Plan Nord.

Its primary mission will be to coordinate the various projects. The gouvernement du Québec has also instructed its main economic investment arm, Investissement Québec, to attract foreign investment.

Investissement Québec will be able to act as a financial partner or play a supporting role in the development of financing packages.

To facilitate project implementation, Hydro-Québec will support industrial efforts by developing and operating hydroelectric power plants unrelated to its own network and dedicated to the energy needs of specific projects.

One of the Plan Nord’s major challenges remains resource accessibility in this vast region. Société du Plan Nord’s mission is to develop a comprehensive, integrated vision of the various modes of transport and communication. Private partners will be called on to contribute financially to infrastructure development, particularly when such infrastructure is related to the implementation of an industrial project.

With the potential opening of the northwest sea passage that would reduce transport time between Asia and Europe, Québec is judiciously positioned on this new sea route. Studies will be conducted on the profitability and feasibility of developing a deep- water port on the outskirts of Whapmagoostui and Kuujjuarapik.

The Plan Nord offers foreign businesses and the international community an opportunity to take part in a unique sustainable development project that will be a model for future economic, social, and environmental development.

1. the PLaN Nord: iNvestiNg iN sustaiNabLe deveLoPMeNt

Northern Québec contains one of the world’s

biggest fresh water reserves in the world.

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Québec possesses a developed, diversified economy that is rich in natural resources and has a number of leading-edge, knowledge- based industrial sectors.

It is also a world leader in a number of high tech industries and one of the ten biggest health sciences industrial hubs in North America.

A number of world leaders in medical technology, basic and contract pharmaceutical research, and the manufacture of new and generic products operate in Québec. Nearly half of the Canadian biopharmaceutical industry, representing over 400 businesses, is concentrated in the greater Montréal area. This critical mass, combined with the construction of two state-of-the-art university hospitals affiliated with Université de Montréal and McGill University, ensures the sustainability of a world-class health sciences industry.

2. aN ecoNoMy based oN dyNaMic KNow-how aNd abuNdaNt resources

Québec is the Canadian province that spends the largest proportion of its GDP on research and development.

The information and communications technology sector accounts for 115,000 jobs in 5,000 companies.

the Québec ecoNoMy

n Québec’s economy ranks 21st compared to those of Organisation for Economic Co-operation and Development (OECD) member countries.

n Québec has a GDP of some C$300 billion, about 70% of which is generated by the service sector.

n Over 60% of Québec’s active population holds a postsecondary or university degree, which is one of the highest rates in the world.

a KNowLedge-based society

n Québec is one of the biggest investors in education, attributing 7.8% of its GDP to this sector.

n Québec boasts a highly developed college and university network.

n Some of its universities are ranked among the best in the world for research and teaching.

n Québec welcomes over 25,000 international students each year.

aN iNterNatioNaLLy reNowNed research sector

n The Montréal Heart Institute, Institut national d’optique, Genome Québec, and the Biotechnology Research Institute.

n Research and development expenditures represent over 2.6%

of GDP, which is above average for OECD, G8, and European Union countries.

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7 The greater Montréal area is also considered as a major international

aeronautic hub, like Seattle and Toulouse. Some 60% of the Canadian aerospace industry’s production originates in Québec. Due to the presence of major contractors and an extended network of suppliers, Montréal is one of only three places in the world where an airplane can be built from nose to tail.

Québec also has one of the greatest concentrations of high tech jobs, with a fast-growing ICT industry. Québec has already made its reputation in video games, animation, and special effects.

Québec is also renowned for its abundant natural resources, whose huge potential has been only partially developed. The province ranks among the ten biggest mineral producers in the world. Thanks to its innumerable rivers, it is the world’s fourth largest producer of hydroelectricity, a green, renewable energy that has enabled Québec to develop a world-class aluminum industry. The territory that the Plan Nord covers accounts over three-quarters of Québec’ installed hydroelectric power generation capacity.

Finally, the province is also known for the size of its forests and its forest industry.

The Plan Nord area accounts for all of Québec’s production of nickel, cobalt, platinum group elements, zinc, iron and ilmenite ore, and a major part of its gold production. It also contains lithium, vanadium, and rare earth elements.

Québec’s North contains over 200,000 km

²

of commercial forests, representing over 53%

of the province’s commercially viable forests.

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Québec has invested in quality of life and sustainable development.

It has a public health system that provides all its citizens access to the highest quality medical care and a general drug insurance plan.

Québec is also known as a “paradise for families.” Its tax system offers many benefits to families with children, and a low-cost day care network is available throughout the province. Its family support policies have a major economic impact and are a key factor in attracting qualified workers and facilitating women’s participation in the labor market.

Québec is renowned for the beauty and vastness of its natural setting. Outdoor activities like camping, hunting, fishing, and skiing are very popular. This proximity to nature helps make Québec a society that adheres to the principles of sustainable development and environmental protection. Québec is a North American leader in the fight against climate change. It has the lowest CO₂ emission rate per inhabitant in Canada, as well as the most ambitious emissions objective on the continent, namely a 20% reduction in pollutant emissions by 2020. To this end it has adopted an aggressive public transit development program and strongly encourages electric transportation.

Québec is a society with a French-speaking majority living on a continent that is mostly English-speaking. This specificity makes for an exciting, vibrant culture. Many big names in the arts and entertainment industry come from Québec, such as Cirque du Soleil, the Montréal Symphony Orchestra, Céline Dion, Arcade Fire, Simple Plan, to name a few. Performing arts shows fill the province’s theaters throughout the year and move outside as soon as winter is over.

In summer, Québec becomes festival ground zero, with numerous events attracting thousands of visitors from around the world: from the Montréal International Jazz Festival and Just for Laughs Festival, to the Québec City Summer Festival, not to mention the biggest winter festival on the planet, the Québec Winter Carnival. Québec’s very low crime rate makes it an ideal place for large crowds to safely gather and have fun.

3. a great PLace to Live aNd PLay

Life expectancy in Québec is 83 years for women

and 78 for men.

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9 Québec offers foreign investors an attractive business environment.

A KPMG study shows that operating costs in Québec are 7.4% lower on average than in the United States. This comparative analysis takes into account the cost of labor, electricity, transportation, and telecommunications, as well as interest rates, depreciation, and taxes.

Québec has a labor pool of four million people known for their competence, creativity, energy, and bilingualism. Over 85% of the province’s workers hold at least a high school diploma. Labor costs are 16% lower than in the United States. The difference is partially explained by Québec’s public health system, which substantially reduces employer contributions to employee benefit plans.

Québec’s corporate tax rate (combined federal/provincial rate) is one of the lowest in North America at 29.90%. Capital tax was abolished in January 2011. Québec’s tax regime also offers some of the most attractive investment and research and development (R&D) incentives in the world.

Lastly, the financial sector in Canada and Québec demonstrated its stability during the recent world financial crisis. Québec’s dominant financial institutions are large federally-chartered banks like Royal Bank, Bank of Montréal, National Bank of Canada, and Laurentian Bank, a number of which are headquartered in Montréal. Desjardins Group, based in Québec, is the biggest cooperative financial group in Canada.

4. aN attractive busiNess eNviroNMeNt

It is less costly to do business in Québec than elsewhere in the G8 countries.

reLiabLe hydroeLectric Power at a very coMPetitive Price

Québec offers access to green, renewable energy. A comparison of energy costs per kilowatt-hour for residential use indicates that the hydroelectricity produced in Québec is much less expensive than that available in other major industrialized areas:

Québec ^{6.88 cents}

Toronto 11.82 cents

United States 11.58 cents

Germany 26 cents

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Ministère des ressources naturelles et de la faune Ms. Andrée Bélanger

Director of Coordination, Plan Nord 5700, 4^e Avenue Ouest, A 314 Québec (Québec) G1H 6R1

Telephone: 418 627-6368, poste 2956 Email: andree.belanger@mrnf.gouv.qc.ca

Ministère des relations internationales Ms. Lucie Latulippe

Chargé de mission Bureau du sous-ministre Édifice Hector-Fabre

525, boulevard René-Lévesque Est Québec (Québec) G1R 5R9

Telephone: 418 649-2400, poste 57169 Email: lucie.latulippe@mri.gouv.qc.ca

investissement Québec

Mr. Sylvain Durocher, M.Sc, MBA Chief Analyst

Direction de l’information stratégique 413, rue Saint-Jacques Ouest, bureau 500 Montréal (Québec) H2Y 1N9

Telephone: 514 876-9362 Cellular: 514 889-9362

Email: sylvain.durocher@invest-quebec.com

5. for More iNforMatioN

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MRNF - Roch Théroux Pierre Dunnigan

Ce document est également disponible en français.

Ministère des Ressources naturelles et de la Faune

Legal deposit – Bibliothèque et Archives nationales du Québec, 2011

ISBN: 978-2-550-62109-6 (printed version) ISBN: 978-2-550-62108-9 (PDF)

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