Good morning. Welcome to the Voisey�s Bay and Beyond Conference and Trade Exhibition - organized by the Labrador North Chamber of Commerce, and the Town of Happy Valley-Goose Bay - an event which recognizes the enormous potential of this region of our province, and focuses on how to make the most of it. It is a pleasure to return to this wonderful area, and participate in this conference with people dedicated to making it even better, as indicated by this year�s theme, "Seize the Opportunities".

This conference will supply you with a wealth of information on the Voisey�s Bay Project, and insight into the latest industry developments, opportunities available, and challenges ahead.

A get-together like this also provides the chance to exchange views with industry leaders, business colleagues, and local residents, while enjoying some famous Labrador hospitality.

Labrador is known as the BIG Land. But we also know that Labrador is a land of BIG Opportunity � a land of BIG resources.

Labrador has great natural resources, including minerals, timber, hydroelectricity, and amazing wilderness areas and wildlife. And the greatest of all resources, the culture and capacity of proud and accomplished people.

PROJECT UPDATE

Since we negotiated the agreement to develop the Voisey�s Bay Project with Inco last year, there has been a lot accomplished. It�s an exciting time in our province, watching a development of this magnitude unfold, in combination with the other industrial progress being made. This is why our economy is growing so strongly, why we have more people employed than at any other time in our history.

Since last June, Inco has invested approximately $55 million in its sites at Voisey�s Bay, Argentia, and St. John�s, and employed approximately 250 people. Last year, a 12-kilometre access road from the port to the mine and mill-concentrator site was completed, in addition to work done on the camp site, and a temporary dock and runway.

Construction work for this year will include upgrading and expanding infrastructure at the construction camp; installing a communications system; clearing land at the site of the mill/concentrator; and building more roadways and a permanent airstrip.

This summer, the Voisey�s Bay Nickel Company expects to have as many as 500 people employed at the site.

At Argentia this year, office and warehousing space is to be constructed, and additional environmental and engineering studies related to road and utilities infrastructure carried out.

BENEFITS - THE BIG PICTURE

All of this work and investment is contributing significantly to our provincial economy. The impact on Gross Domestic Product over the 30-year life of the project is expected to be $11 billion.

Total capital investment will be $1.9 billion invested in Labrador, and $1 billion on the island � generating 76,000 person years of direct and indirect employment.

And the planned 30-year life of the project is likely to be extended considerably as a result of further exploration and development. It is currently estimated that an additional 1.2 million tonnes of nickel lies in underground deposits.

When underground development begins, there will be an additional 400 jobs created in Labrador.

This project means that more of our citizens will be able to earn good livings right here, and not have to move for employment.

That is our goal, having a productive and fully employed workforce contributing to the social and economic growth of our province for generations to come.

Employment on the Voisey�s Bay project will be based on Inco�s adjacency principle. This will ensure that those who live near the resource, and are qualified, will be given priority for jobs.

Committing to an adjacency principle was an important aspect of the development proposal. Government will ensure it�s enforced. It was Inco�s commitment made in the Environmental Impact Study for the purpose of enhancing benefits for the people of Labrador.

VBNC�s commitment to this principle is evident from employment levels which were achieved last year � 90 per cent of the workforce came from within the province, half from Labrador, and 30 per cent from the Innu and Inuit communities. We look forward to comparable results this year, and into the future.

Education and training will be key to maximizing opportunities for our people.

That is why our government is working with the company, and the federal government, to help increase employment opportunities.

Inco is committed to creating jobs at the local level and, as a result, will establish training programs right here in Labrador, in conjunction with the province�s educational institutions.

All parties are assessing the training needs for Innu and Inuit people to make sure their participation in the project reflects the integral part they played in making the project a reality.

In this respect, the Innu and Inuit have successfully completed Impacts and Benefits Agreements with Inco and VBNC.

These agreements guarantee the Innu and Inuit economic benefits, including first priority for employment, and make provisions to address social, cultural, and environmental concerns.

The Innu Nation and the LIA, along with the provincial and federal governments, have also negotiated an Environmental Management Agreement to address environmental matters associated with construction and operations. A management board has been established, comprised of two representatives from each group.

NEW MINER and NEW TECHNOLOGY

Mining has changed significantly in recent years. No longer do hundreds of people show up with picks and shovels, ready for work. Much of the physical labour has been replaced with advanced machinery.

The industry has changed, as have the kind of skills required to work in it.

Many of the jobs created in Labrador, and on the island, will require skilled professionals. Citizens of our province will be given the opportunity to develop and learn the necessary skills to work in this technical field.

The Inco Innovation Centre is being set up for that reason � a major benefit to the province, and a testament to the forward-thinking evident with this project.

Operated in conjunction with Memorial University, the centre will be a hub for research and development. It will draw on existing infrastructure and resources at the university.

Through the university, the centre will provide a world-class education for approximately 50 - 60 students per year for studies in various degree granting programs associated with the mining industry.

The biggest research and development project ever to take place in Atlantic Canada will be the hydromet demonstration plant at Argentia. It is being designed and engineered to begin construction in 2004, and begin operations in 2006.

Construction on the $800 million commercial processing facility will begin in 2009, concluding in 2011. Employment is estimated at 1,000 people during construction, and should create 400 long term jobs when operations begin.

Last March I visited the Inco research and development facility in Mississauga, Ontario. This is where the metallurgical (hydromet) processing technology is being developed. They are building a mini-plant there which will test the hydromet process on the Voisey�s Bay concentrate. It is an impressive undertaking.

The development and use of leading-edge nickel processing technology has great potential for extending the life of this industry in our province.

BUSINESS OPPORTUNITIES

I�ve been talking about benefits and jobs which are directly related to the project itself. Naturally, with a venture of this scale, Voisey�s Bay will generate many spin-off opportunities.

Entrepreneurs who "seize the opportunities" created from the very existence of this massive project will create further employment for our people.

VBNC recently signed contracts with a number of aboriginal and local companies. More can be expected.

The company will establish a Project Information Centre in Happy Valley-Goose Bay which will provide information on employment opportunities and supplier participation for all phases of the project.

Government believes this project is bringing out the entrepreneurial spirit of Labradorians and Newfoundlanders. We will do everything we can to help.

For example, the Industrial and Employment Benefits Agreement contains a number of principles which were written in to ensure maximum benefits to us, from our natural resources.

During our talks with Inco we were adamant that, where possible, facilities in the province should be used for construction, fabrication and assembly. The agreement also makes provision for meaningful engineering, procurement and project management to take place in the province.

We believe Inco and VBNC are committed to full and fair opportunity and first consideration for local residents and businesses to compete for the supply of goods and services.

We have binding legal commitments which we will enforce. But we all have to be practical and reasonable in working together for the success of this great development. Problems resulting from inevitable delays and complications typical of large construction projects should not be exaggerated. People and companies based in our province will have primary participation in this project. It would not be going ahead otherwise. It could have begun years ago if government had been prepared to accept inadequate benefits for our province. But it would not be proceeding today if those who can never be satisfied had the decision making responsibility. As in all our resource initiatives, we fight for the best deal possible, and we commit only if it is acceptable to those who elect us.

When Government sits down to negotiate an agreement to develop our natural resources, our sole objective is to get all reasonable benefits for our province. We don�t want development at any price. But we have to be competitive to get the kind of investment required. Some people can never be satisfied, but most make reasonable judgments. They support what makes sense. And we would never proceed with anything not in the best interest of our province. We all want to see as many provincial benefits as possible from all our resource developments. However, we have to be realistic, if we want development. But we must also be prepared to reject what is not acceptable, as we did for so long with Voisey�s Bay.

Companies, like Inco, make huge financial commitments to develop these projects. They will only do so if they are likely to make profits - the same basis on which we all make investments. The world is full of resources. Projects which are most competitive get developed first. Voisey�s Bay is a very rich and competitive project, in which Inco has a major investment. It is going ahead because the company agreed to proceed on terms acceptable to the province. We agreed to those terms because they provide for benefits very competitive with any negotiated in this industry, guaranteed benefits which will provide significant jobs and revenues for our people for a generation, and more. Not bad for a resource which had laid dormant since time began, until the potential was discovered by Al Chislett and Chris Verbisky.

Scott Hand, Chairman and CEO of Inco, in a speech to business students at Memorial University in February, stated that market trends indicate world demand for nickel is growing rapidly, in large part as a result of demand in China. That country accounted for two-thirds of the growth in world nickel demand last year. Mr. Hand said: "In fact, world demand is growing quickly enough to require a new Voisey�s Bay project every year."

That sounds very promising for the future of Voisey�s Bay. However, let�s not fool ourselves � there will be challenges. Even when Voisey�s Bay is up and running, we have to remain diligent.

Remaining diligent means we will be ensuring that VBNC fulfills all of its commitments in the Environmental Impact Statement, and follows through on the contractual requirements in the Development Agreement and the Industrial and Employment Benefits Agreement.

Labrador is blessed with great resources. We have to manage them effectively and productively to maximize benefits for all our citizens.

CONCLUSION

I certainly appreciate this opportunity to officially open the 8^th Annual Voisey�s Bay and Beyond Conference and Trade Exhibition.

Thank you to everyone responsible for the success of this conference. Thank you to all the participants. And, on behalf of the people and government of our province, thank you to everyone contributing to the success of this tremendous opportunity which will provide substantial benefits for all our people for decades to come. That is what is meant by "Seizing the Opportunities."

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2003 06 24