Labrador should benefit first and foremost from hydro developments, McLean says

Labrador and Aboriginal Affairs Minister Ernie McLean is pleased the provincial government and Alcoa Inc. have signed a Letter of Intent to undertake a joint review of the feasibility of building hydroelectric facilities on the Lower Churchill, as well as the economic viability of establishing an aluminum processing facility, or facilities, in the province.

"This is very encouraging," said Mr. McLean, who�s also the MHA for Lake Melville, "but I think we have to remain cautiously optimistic and ensure we don�t raise people�s expectations too high. There�s no certainty that this feasibility study will result in the development of the Lower Churchill."

The minister stressed, however, that any Lower Churchill hydro development should benefit the Labrador portion of the province before there�s any talk of transporting power to the island.

"I would hope Alcoa would give some serious consideration to establishing a processing facility in Labrador," he said. "From what I understand, industry analysts have indicated that it�s more feasible to have an aluminum smelter built close to the power source. I�m confident that the cards are stacked in Labrador�s favour."

Mr. McLean said, however, that he realizes any decision by Alcoa to establish processing facilities in the province will be based on sound economic and technical analysis.

"If Alcoa chooses to pursue construction of a smelter, they will outline their plans and the relevant rationale at the appropriate time," he said. "I would assume that the decision as to the location of a smelter, or smelters, will be made based on a review of the economic, financial, environmental, Aboriginal and other factors."

Mr. McLean noted that under the terms of the Letter of Intent, Alcoa is required to examine the viability of sites in Labrador and on the island.

"My hope is that Labrador will play a major part in Alcoa�s decision-making process," he said. "We have no problem with sharing our resources, but the people of Labrador should be the ones to benefit first and foremost."

Mr. McLean added that steps must also be taken to ensure Aboriginal groups are fully consulted before any decisions are made.

Media contact: Bert Pomeroy, Labrador and Aboriginal Affairs, (709) 896-3099.

2001 07 31                 3:55 p.m.