July 27, 1998
(Executive Council)

Premier Brian Tobin responded to comments by INCO regarding Voisey's Bay. At INCO's Board of Directors meeting in Toronto, President Scott Hand stated: "The type and scope of processing facilities envisaged by the province would make the project uneconomic."

"I am disappointed that INCO continues to back away from its commitment to the people of Newfoundland and Labrador to mine, mill, smelt and refine the nickel from Voisey's Bay in this province," said Premier Tobin. "Our bottom line has not changed - no smelter/refinery - no mine/mill. Our analysis indicates a mine/mill and smelter/refinery is feasible."

Regarding INCO's comments on a proposal it made for further processing, the premier stated: "INCO's only firm proposal was to ship all of the raw concentrate out of the province. Beyond this, INCO also floated a `concept', not a proposal, which they were willing to explore only if governments would commit to substantial financial incentives. INCO's `concept' would involve about 150 jobs at Argentia - not the 800-900 jobs they promised just last year, and fewer than previously proposed for the mine/mill in Labrador. Furthermore, this `concept' would see INCO mine the ovoid for a mere seven years and ship half of the raw concentrate out of the province. Beyond that, their only commitment is to do further exploration which may or may not lead to underground development. A year ago they were talking about a project with a life of over 20 years, now they're only committing to seven years.

"I say to INCO, the people of Newfoundland and Labrador are willing to wait for a project that provides full and fair benefits."

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

1998 07 27                                  7:45 p.m.