September 30, 1998
(Executive Council)

Funding for Newfoundland Aggregates creates 22 new jobs

Fred Mifflin, Minister of Veterans Affairs and Secretary of State for the Atlantic Canada Opportunities Agency, on behalf of Pierre S. Pettigrew, Minister of Human Resources Development Canada, and Premier Brian Tobin on behalf of the Government of Newfoundland and Labrador, today announced $882,000 in funding for a St. George's Bay business, Newfoundland Aggregates Limited, to manufacture natural sand for the export market. The total project costs amount to $1.3 million.

The Government of Canada is participating, through the Transitional Jobs Fund, in this partnership with the Atlantic Canada Opportunities Agency, the provincial Department of Development and Rural Renewal and the Long Range Business Development Centre. This project has been identified as a priority for economic development in the local area and will help create one full-time sustainable job and 21 full-time seasonal jobs in Newfoundland.

In addition to the contribution of $300,000 each from Human Resources Development Canada and the Atlantic Canada Opportunities Agency, the provincial Department of Development and Rural Renewal will contribute $218,000, and the Long Range Business Development Centre will invest $64,000.

"Natural sands are high in demand in the United States, especially in the concrete and asphalt industries," said Minister Mifflin. "Newfoundland and Labrador has tremendous resources. This company is to be congratulated for creating an export industry that brings new employment to rural Newfoundland."

"The export industry offers a wealth of new opportunities for growth and job creation, Newfoundland Aggregates has taken sand and turned it into an export commodity that will create 22 jobs locally," said Premier Tobin. "This strategic investment, together with the efforts of the Long Range Business Development Centre, has given Newfoundland Aggregates the opportunity to compete in world markets."

To manufacture the natural sand, Newfoundland Aggregates will expand and modernize their existing plant. The company will purchase new equipment and prepare the site including upgrading the loading facilities to permit production, transportation and the loading of bulk.

The Government of Canada's Transitional Jobs Fund (TJF) is designed to encourage partnership initiatives with other levels of government, the private sector and community groups. Projects are subject to consultations with the provincial or territorial government in which the activities takes place, regardless of its financial participation. Projects should also be consistent with regional economic development strategies.

Media contact:

Heidi Bonnell
Premier's Office
(709) 729-3960

Jim Grant
Human Resources Development Canada
Newfoundland Region
(709) 637-4261

Ron Callahan
Newfoundland Aggregates Ltd.
St. George's, NF
(709) 647-3500

Randy Devine
Atlantic Canada Opportunities Agency
(709) 772-2935

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BACKGROUNDER

NEWFOUNDLAND AGGREGATES

• Newfoundland Aggregates (1991) Ltd is 100 per cent owned by Ron Callahan who has 30 years experience in the construction business. Between 1991 to 1994, the company produced 750,000 tonnes of gypsum and anhydrite in a joint venture with Domtar Inc at its quarry in Flat Bay. In addition, the company also operated a ready mix concrete plant and produced its own aggregate for this venture as well as for sale to the local construction industry. After several years of research into the exporting of sand the company began to make inroads into the New England market to the point where they had to expand and modernize their existing business in order to locally manufacture sand for export markets.

• The new business venture will take place at the company's open quarry located in the community of St. George's, on the west coast of Newfoundland. This site combined with another site the company plans to use gives the proponent a confirmed eight year supply.

• Product will be shipped to the US in bulk carriers with capacity of 40,000 tonnes per load. The ship, once loaded will steam to the New York area, where the customer will unload the ship into barges for distribution.

• The markets for aggregates in the United States are steady with anticipated growth in the next several years. Improved economic growth in the US has prompted growth in the construction industry in general and natural disasters such as floods and hurricanes have destroyed significant infrastructure and government is committed to construction projects which require sand.

• This business venture will utilize the recently upgraded loading system at St. George's and enhance the 22 dockside loading jobs. As well, the export market will generate in excess of one million dollars in new economic wealth for the province and locally there will be an annual payroll in excess of $400,000 after one year.

1998 09 30                                              2:30 p.m.