Minister responds to Opposition complaints regarding Argentia site

Mines and Energy Minister Lloyd Matthews today responded to criticisms raised by Placentia-St. Mary�s MHA Fabian Manning regarding project development work to take place at Voisey�s Bay Nickel Corporation�s (VBNC) site at Argentia.

Mr. Manning stated earlier today that much of the work that was promised by VBNC has not yet materialized in the Argentia area, and that government misled the people of the area last month by stating that activity would commence in short order.

"While I appreciate Mr. Manning�s attempt to see things happen more quickly at Argentia, preliminary work must be completed to ensure the long-term success of the site," said Minister Matthews. "Government realizes the necessity of allowing VBNC to complete their preparatory work before moving forward with their construction activities. This will ensure that work is done in a manner that is environmentally responsible.

"We have re-confirmed with VBNC officials that engineering and planning work, work that must be completed before any construction activity can take place at the site, is being finalized. In particular, I understand that the environmental registration for the demonstration plant will be filed within a matter days, well ahead of VBNC�s original schedule.

"I have also been advised that the company expects to commence fencing, geotechnical and utility studies activities very shortly. Security officials will be hired to ensure that the site remains secure and a temporary site project office will be established within the next couple of weeks. In fact, VBNC has selected the actual site for the demonstration plant and once environmental release is obtained, construction will commence on building the warehouse. The company has committed to spending $5 million on the Argentia site before March, and we have been assured that this commitment will be kept."

Government�s fundamental position in negotiating a Voisey�s Bay agreement was to ensure that the opportunities for the people of Newfoundland and Labrador were maximized from the development of Voisey�s Bay. Government will continue to monitor all activities of the project to ensure that these benefits accrue to the province in a manner that lives up to binding agreements signed on October 7.

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

2002 10 30                                        3:30 p.m.