Voisey�s Bay Project legal agreements completed

The Government of Newfoundland and Labrador and Inco Ltd. today signed a Development Agreement and an Industrial and Employment Benefits Agreement for the Voisey�s Bay Project. These agreements contain the undertakings and commitments that both parties agreed to in the Statement of Principles signed on June 11, 2002.

Participating in the announcement were Premier Roger Grimes, Mines and Energy Minister Lloyd Matthews, representing the Government of Newfoundland and Labrador, and Scott Hand, Chairman and CEO of Inco Ltd., and Stewart Gendron, President of Voisey�s Bay Nickel Company Limited.

"On June 11, 2002, government delivered on its commitment to the people of the province that the Voisey�s Bay nickel deposit would only be developed in a manner that maximizes benefits for Newfoundland and Labrador. These contracts ensure that Voisey�s Bay nickel concentrate will be processed in the province to a finished nickel metal product and that any concentrate shipped out will be replaced for processing," said Premier Grimes.

"Today�s announcement confirms that this government will only sign deals that achieve maximum benefits for the people of Newfoundland and Labrador. It also demonstrates that this province continues to be an attractive place to invest and to conduct business," said the Premier.

Over the life of the project, the total capital investment in the province will exceed $2.9 billion and total employment benefits are estimated to be 76,000 direct and indirect person-years. Provincial Gross Domestic Product impact over the 30-year period is estimated to be approximately $11 billion.

Minister Matthews said that the Voisey�s Bay Project has already had a positive impact on the mining industry in Newfoundland and Labrador. "My office has experienced an upsurge in inquiries, not only in respect to mining, but also regarding other development opportunities as well. The Voisey�s Bay Project has attracted international attention and has resulted in renewed interest in Newfoundland and Labrador," said Minister Matthews. "Government anticipates that this project will also encourage new exploration in the province that will lead to new discoveries and developments."

Work has commenced at the Voisey�s Bay site with road construction and building of a temporary dock. To date, 12 contracts have been awarded valued at over $30 million, and 250 direct and indirect jobs have been created.

"Inco and VBNC have already demonstrated their commitment to Labrador in training, employment and business opportunities for the Innu, Inuit and the people of Labrador in general," said Labrador and Aborigianl Affairs Minister Ernie McLean. "The work that is currently taking place at Voisey�s Bay involves significant participation by Labrador interests and it is expected in the years to come that participation by Labradorians will increase."

Project highlights include:

Construction of the mine and mill/concentrator at Voisey�s Bay ($710 million, 550 jobs)

Hydromet demonstration plant ($85 million, 200 jobs)

Hydromet processing facility ($800 million, 1,000 jobs)

Inco Innovation Centre in St. John�s ($10 million)

Underground exploration at Voisey�s Bay ($95 million, 85 jobs)

Mine and mill/concentrator at Voisey�s Bay (400 jobs, increasing to 800 jobs)

Processing facility (400 jobs)

Inco Innovation Centre (50-60 students per year)

For more information regarding the Voisey�s Bay Project and copies of the legal agreements signed today, please visit the Government of Newfoundland and Labrador Web site at www.gov.nl.ca/voiseys

Photo #1:Premier Roger Grimes (L) signing the Voisey's Bay legal agreements

Photo #2:Scott Hand Chairman and CEO of Inco Ltd. (R) signing the Voisey's Bay legal agreements

Media contact:

Carl Cooper
Premier�s Office
(709) 729-3564

Darrell Mercer
Department of Mines and Energy
(709) 729-5777

Bert Pomeroy
Department of Labrador and Aboriginal Affairs
(709) 896-8668

2002 10 07                                        4:10 p.m.