The following statement was issued by the Honourable John Hickey, Minister Responsible for Labrador Affairs, on behalf of the Honourable Kathy Dunderdale, Minister of Natural Resources . It was also read in the House of Assembly:

On behalf of my colleague, the Honourable Kathy Dunderdale, Minister of Natural Resources, I am pleased to advise my other honourable colleagues that earlier today Consolidated Thompson Ltd. announced a tentative agreement has been reached with the owners of Wabush Mines for the purchase of the mining operation in Labrador West.

As members are aware, last year Consolidated Thompson entered into exclusive discussions with the owners of Wabush Mines � Cleveland Cliffs, Stelco and Dofasco � in an effort to seek out possible synergies between the Labrador West mine and Consolidated Thompson�s Bloom Lake iron ore project. Premier Williams engaged both Consolidated Thompson and Cleveland Cliffs, Stelco and Dofasco during the negotiating process to expedite a deal.

However, early in 2007, Consolidated Thompson announced that it had ended its negotiations on the purchase of Wabush Mines. Our government was very disappointed with that news; yet, we remained optimistic as the door was left open for future talks.

As our government firmly believed there were significant opportunities to be realized through a partnership with the operations of Wabush Mines and the Bloom Lake project, we were not prepared to give up and let the prospect of such an arrangement pass by. It was our view that a successfully negotiated arrangement would add to the life of Wabush Mines.

The Premier personally intervened and spoke with representatives of Consolidated Thompson in early February at which time he impressed upon them the benefits of continuing to hold discussions in an effort to secure a deal.

Today, we are seeing the results of how that direct intervention by our government helped to pave the way for an announcement that a deal has been reached.

This is tremendous news for the employees of Wabush Mines, their families and the entire Labrador West region. It will provide more stability and security for those directly employed by the mining operation as well as for those indirectly dependent on this operation for their livelihood. Furthermore, it is also a significant advancement for the mining industry, specifically in Labrador, and generally in the province.

I commend Consolidated Thompson and the mine owners for listening to our encouragement and reaching an agreement toward a win-win conclusion for both the Bloom Lake project and Wabush Mines.

I know I echo the sentiments of the people of Labrador West when I state this is the most positive development that has happened for this mine in quite some time. I firmly believe the cloud of uncertainly that has loomed over the future of Wabush Mines has dissipated. A new and more certain future is on the horizon.

2007 06 06                                                2:30 p.m.