Official Opposition displays lack of understanding on Voisey�s Bay Project

The Official Opposition continues to display either a lack of understanding of the issues concerning the Voisey�s Bay development or a political agenda of deliberate misrepresentation.

"Mr. Williams has brought forward several issues that have no basis in fact," said the premier. "The Official Opposition continues their efforts to scare people into thinking that this is a bad project. The fact of the matter is this, government has negotiated a good project, a project that will generate billions of dollars for the provincial economy and thousands of jobs for our people. We believe that once Newfoundlanders and Labradorians review the Statement of Principles, they will see for themselves that this is a very positive project."

The premier outlined several issues that he believes were misrepresented by the Official Opposition at their news conference yesterday.

"Mr. Williams stated that not all of the Voisey�s Bay ore would be processed in this province. This is not true. In fact, the full equivalent amount of nickel at Voisey�s Bay will be processed in Newfoundland and Labrador over the life of the project. Nickel is nickel. The processing facility at Argentia will process a 100 per cent equivalent amount of nickel from Voisey�s Bay.

"Mr. Williams stated that the value of the ore to be exported is $3 billion. This is true, but during the same period of time Inco will have spent over $3 billion in capital and operating expenses in the province. Furthermore, at this point in time, we will have a fully operational processing facility at Argentia and Inco will have barely broken even.

"Mr. Williams stated that we have no guarantee for ore replacement. This is not true, we have a written guarantee in Section 25 of the Statement of Principles. Section 25 also provides a court remedy that will compensate the province should the company not live up to the guarantee they have given.

"Mr. Williams stated that Inco will only build a refinery if it is economically and technically viable. This is not true. In the unlikely event that the hydromet technology does not work, Inco will still construct a refinery that will ensure a finished nickel product is produced. This refinery will still require an investment of $670 million and employ 350 people. This is the worst case scenario and is guaranteed in the Statement of Principles.

"The Official Opposition believes that Inco can refuse to return ore if it cannot find replacement ore from external sources at a reasonable cost. This is not true. Inco can only delay the return for a maximum of three years following the end of mining operations at Voisey�s Bay.

"Mr. Williams believes that we will not receive enough direct monetary payments to the provincial treasury. From all sources, the province receives over $1 billion as a result of this project proceeding. In fact, we will receive approximately $90 million more from the new generic Mining Tax regime than under the existing regime. Equalization is a separate debate between the federal and provincial governments in which this province continues to lobby for change."

Premier Grimes stated that government members are working diligently to ensure that adequate consultations occur with the people of the province. He also stated that government welcomes any and all questions on the Voisey�s Bay Statement of Principles and is looking forward to an informative debate in the House of Assembly.

Media contact: Carl Cooper, Communications, (709) 729-3960.

2002 06 13                            12:15 p.m.