October 18, 1996
(Mines and Energy)

Dr. Rex Gibbons, Minister of Mines and Energy, announced today he will issue a "Call for Proposals" for the development of the former asbestos mining and milling operation at Baie Verte.

The successful proponent will be granted the exclusive mineral rights in the form of an exploration licence or a mining lease for the Baie Verte asbestos property. The chrysotile asbestos reserves are concentrated in two areas. The first is approximately 9.5 million tonnes of high quality asbestos located beneath the open pit. The second, which is easier to extract, is 40 million tonnes of lower grade asbestos within the stock-piled mill tailings.

Under the Mineral Act, the property was designated as an Exempt Mineral Land (EML) to protect minerals rights until a time when the government was able to offer it for further development. "By calling for proposals now, we hope to promote the mineral potential of the site and attract interest in the recovery of the chrysotile asbestos," says Gibbons. "Economic evaluations for the operation estimate there is a six-year production life for the site. At full production, the underground operation will employ approximately 150 people."

Infrastructure at the site includes two processing plants, a warehouse, dock and ancillary buildings. The deadline for the receipt of proposals is December 20, 1996.

Chrysotile asbestos is one of six types of asbestos. It is a white strong fibrous material which has chemical and thermal stability, high flexibility, low electrical conductivity and a large surface area making it highly versatile and cost effective. It is widely used in materials such as woven brake linings, cement, roof coatings and plastics.

Contact: Tara Laing, Assistant Director of Communications, Mines and Energy, (709) 729-0050.