Proposal to establish $19.3 million dimension stone facility

The Government of Newfoundland and Labrador is facilitating a private sector proposal to establish a $19.3 million state-of-the-art dimension stone processing facility at Argentia, Development and Rural Renewal Minister Beaton Tulk said today.

"I am extremely hopeful that some final details to be arranged will soon be worked out so that this proposal will become a reality. This new granite fabrication facility � a private sector-led initiative � would strengthen and diversify the economy of the Argentia area, and provide full-time employment for 60 to 70 people when in production," Mr. Tulk said. "It would also have longer term benefits for development of the dimension stone industry in other areas of the province."

Mr. Tulk said that three government departments have been working closely with the private company involved, Mayor William Hogan of Placentia, and the Argentia Management Authority to facilitate the company�s proposal.

Three departments have already approved provincial public sector assistance. The Department of Development and Rural Renewal will provide a loan of $500,000; Industry, Trade and Technology has agreed to grant Economic Diversification and Growth Enterprises (EDGE) status; and Mines and Energy has approved a grant of $300,000 under its Dimension Stone Incentive Program. The Argentia Management Authority is also providing assistance. Private sector funding in the order of $17 million is also being finalized for this initiative.

The federal government has also been asked to play a role through Human Resources Development Canada. "The province is supportive of federal investment in this project and encourages HRDC to give final approval to the project on a timely basis," Mr. Tulk said.

Mr. Tulk said this venture would support recommendations made to the Cabinet Committee on Jobs and Growth during its public consultations.

"We were told that the dimension stone industry represents an opportunity for significant investment in rural areas, both to further diversify our rural economy and advance the development of the dimenstion stone industry itself," Mr. Tulk said.

The global market for stone products is substantial. In the United States alone, it is growing at a rate of 30 per cent annually.

"The facility at Argentia would help other Newfoundland and Labrador companies in the dimenstion stone industry capitalize on these global opportunities," Mr. Tulk said.

The minister said the three provincial departments involved in the proposal for Argentia will continue to work with the private company, the Town of Placentia and the Argentia Management Authority to facilitate final approval.

Media contact: Josephine Cheeseman, Communications (709) 729-4570.

2000 06 07                                         1:35 p.m.