Minister provides update on Voisey�s Bay activities

Mines and Energy Minister Lloyd Matthews today provided an update on activities currently taking place on the Voisey�s Bay project following his recent visit to the Voisey�s Bay site on Friday.

The Voisey�s Bay Statement of Principles was signed on June 11, 2002, and approved by the House of Assembly on June 19, 2002. Government and Inco are currently proceeding with the drafting of the binding agreements scheduled to be completed by September 30, 2002.

Minister Matthews said that he was pleased to have had the opportunity to witness first hand the level of activity taking place at the Voisey�s Bay site. "This was my first site visit since the announcement of the Statement of Principles in June, and I was very encouraged with the level of work that has already taken place. After seeing the level of shipping activity and the growing road infrastructure, it truly signifies the impressive scope of this project.

"I am also very pleased with other areas of progress related to Voisey�s Bay activities. A number of important agreements have already been finalized between the provincial government and the aboriginal groups including: the Innu Memorandum of Agreement concerning the Voisey�s Bay project and the Inuit Interim Measures Agreement. Also, the Environmental Management Agreement (EMA) has been signed by the provincial government, the Labrador Inuit Association (LIA) and the Innu Nation, with the federal government expected to sign in the coming weeks."

The minister noted that an Environmental Management Board (EMB) has been established to provide advice to ministers on permit authorizations and environmental issues related to the Voisey�s Bay mine and mill components of the project. The EMB has already met twice, approving all 20 permits that the Voisey�s Bay Nickel Company Limited (VBNC) have identified as a priority.

"I am very encouraged that VBNC continues to follow the commitments that were made in the Statement of Principles concerning work schedules and employment benefits. To date, VBNC has awarded 12 contracts, valued at over $30 million, for work at the Voisey�s Bay site. All of these contracts are joint ventures with aboriginal companies and involve Newfoundland and Labrador companies.

"There are currently 143 people working at the Voisey�s Bay site. This number includes 125 residents of the province, of which 81 are Labradorians. VBNC and its contractors also employ approximately 50 people in other areas of the province, for a total of 193 employees. In the Statement of Principles, VBNC estimated that they would create approximately 250 jobs in 2002-03. I am very pleased to see that they are well on their way to reaching that number.

"I have also been advised by VBNC officials that the process to acquire the land necessary for the demonstration plant and commercial processing plant at Argentia is well underway. Also, project offices are expected to be in place at Argentia and Goose Bay in October, and planning discussions with respect to the Inco Innovation Center continue with Memorial University."

Government remains committed to ensuring that maximum benefits from the Voisey�s Bay project are realized and will continue to closely monitor all aspects of the deal as it moves forward.

Media contact: Darrell Mercer, Communications, (709)729-5777.

2002 08 19                               4:10 p.m.