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April 22, 1998
(Executive Council)


Premier Brian Tobin said today that he is glad to hear that the Voisey's Bay Project remains a high priority for Inco, as noted by Dr. Michael Sopko at the annual shareholders' meeting in Toronto.

"The government agrees that the Voisey's Bay Project has to be economical and provide a satisfactory rate of return to shareholders," said the Premier. "However, the company cannot demand as a condition of proceeding a rate return based on their sunk acquisition costs. Every analyst, including Goldman Sachs, has strongly recommended that the company write down the acquisition costs of the project."

The province is committed to making the project happen, but value-added processing must occur in Newfoundland and Labrador as a part of any deal. Provincial legislation governing all mineral development states that further processing must take place in the province if it is economical and technically feasible to do so.

"Our own analysis indicated that there is an economical deal to be done which would include a mine/mill/smelter/refinery," said the Premier.

Contact: Heidi Bonnell,(709)729-3564.

1998 04 22 1:45 p.m.

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