N.L. dominating Atlantic growth: forecast

Capital spending in Newfoundland and Labrador is far outpacing its Atlantic neighbours, largely because of work attached to several megaprojects, a conference has been told.

The Atlantic Provinces Economic Council reported to a meeting in St. John's that oil and mining are combining this year to catapult Newfoundland and Labrador's economy.

"The pace of investment activity is at record levels, and we expect it to continue for some time," APEC research analyst Patrick Brannon said Thursday.

The growth is being driven from several directions. Apart from expansion at the Hibernia oil field, work is proceeding on expanding White Rose and launching Hebron, which will become the fourth field off eastern Newfoundland to go into production.

Vale, meanwhile, is building a huge processing facility in Long Harbour, Placentia Bay to process ore mine at Voisey's Bay, on Labrador's northern coast.

As well, the Iron Ore Company of Canada is preparing a large expansion at Labrador City.

APEC president Elizabeth Beale said the value of all that expansion is worth more than what's happening in all of the other Atlantic provinces — combined.

"We are seeing a dominant role in terms of spending in this region," Beale said.

"About $43.6 billion out of the $71 billion [of potential spending] that we've identified is here in this province," she said.

There are more projects on the horizon. Robert Martin told delegates that his Quebec-based company, New Millennium Capital, is spearheading an iron ore mining operation in western Labrador that he expects will create more than 3,000 jobs and more than $2 billion in taxes.

"We have a resource up there that will last over a hundred years," Martin said.

The APEC forecast comes with a caution, as it notes the investment boom is happening while interest rates are low and commodity prices are high.

If either of those conditions changes significantly, APEC warns the boom could quickly turn to a bust.