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

I would like to provide the members of the House of Assembly with an update on the status of the feasibility review with Alcoa regarding the Lower Churchill Hydro Project and the possible establishment of an aluminum processing facility in the province. 

When government entered into this arrangement, we agreed we would not participate in negotiations with any of Alcoa's competitors while the feasibility study was being completed. However, we did continue to move forward with our work-plan to investigate all options to develop the Lower Churchill Hydro Project.

I am pleased to report that on Friday, November 30, Alcoa provided us with the results of its feasibility review. We are in the process of reviewing this information and identifying any issues which may require clarification with Alcoa. 

The challenge of arriving at a favourable development option for the Lower Churchill has been before this and preceding governments for almost 25 years. Any project that leads to the development of the Lower Churchill must provide maximum benefits to the people of the province.

Once we have completed the review of the feasibility study, cabinet will then evaluate the results in context with other possible options for the development of this resource. Government will subsequently report to this House and the people of Newfoundland and Labrador on the outcome and whether we intend to proceed further with the company on the development of these potential projects. 

2001 12 03                         1:50 p.m.