November 25, 1999
(Mines and Energy)

The following statement was issued today by Roger Grimes, Minister of Mines and Energy. It was also read in the House of Assembly:

I would like to provide a brief update regarding the development and processing of the Voisey's Bay Nickel deposit.

In the summer of 1998, Inco indicated that they would prefer to have a mine and mill only in Labrador and that they would prefer to have smelting and refining done in some of their existing plants outside the province. The government stated clearly that there could not be any operation in the province that did not include processing to achieve full and fair benefits for Newfoundland and Labrador and negotiations broke off at that time.

Informal discussions have been ongoing for several months to determine whether or not Inco would commit to full processing and, therefore, whether there was any basis to reactivate a negotiation process. During this past summer of 1999, Inco has indicated a clear interest in developing the Voisey's Bay resource and I was requested by Cabinet to seek clarification as to their intentions.

I can confirm several things. First of all, Inco is seeking to finalize a proposal that entails full processing in this province. They are preparing to formally propose for the province's consideration a 25 to 30 year development plan in line with the recommendation of the Environmental Assessment Review Panel.

Secondly, they are also preparing to formally propose for our consideration a new, leading edge hydrometallurgical processing plant in Newfoundland and Labrador that will be the first of its kind in the world. They are also preparing to formally propose that the end product from the new processing plant will be nickel metal, the same product that is achieved through the traditional smelter/refinery technology.

Thirdly, Inco is hard at work on all aspects of a comprehensive proposal covering the full gamut of mining, milling (converting ore to concentrate), and processing concentrate into nickel metal. We will continue to meet with them as required and provide updates if and when progress is made. Our next meeting is expected as early as next week.

However, I need to conclude with a couple of important reminders and cautions. The government and Inco do not have a deal. We have not received a formal comprehensive proposal from Inco. Until we receive such a proposal, we cannot determine with certainty whether we have the basis to resume formal negotiations. In the meantime, we are willing to continue to work towards a comprehensive package that delivers full and fair benefits for our province.

1999 11 24 2:15 p.m.