Natural Resources
June 30, 2010Minister Refutes
Accusations of Company
The Honourable Kathy Dunderdale, Minister of Natural
Resources, today expressed her disappointment in the recent misleading
statement of Motion Invest pertaining to interest of the company in the
former Abitibi mill in Grand Falls-Windsor.
"Lott Paper approached the Government of Newfoundland and Labrador
expressing interest in the mill at Grand Falls-Windsor and subsequently
a letter of intent from Motion Invest followed, along with details of
how they would like to proceed with reactivating the mill," said
Minister Dunderdale. "Our government, acting in good faith, worked with
both companies to further explore their interests in the mill. Based
upon the letter of intent they put forth we asked for further financial
information as well as a business plan. The purpose of this was to
ascertain relevant information such as other business and financial
partners, financial institutions and details associated with their
interest which would then enable us to evaluate the plan
comprehensively."
In response to questions on this matter Minister Dunderdale publicly
indicated that a company had expressed interest in the mill and was
expected to provide the Provincial Government with detailed financial
information along with a business plan for operating the mill. The
Provincial Government was accused of raising expectations in the
province about the future of the former Abitibi mill in Grand
Falls-Windsor.
"If in answering the question of the Leader of the Opposition during
Question Period I had not been truthful and not provided information
about the interest expressed by the company, I would have been
criticized for being secretive," said Minister Dunderdale. "At no time
have I said that a deal was done, was close to being done or that any
form of significant negotiation had taken place. That being said, we
owed it to the people of Grand Falls-Windsor to pursue and thoroughly
evaluate this expressed interest."
Minister Dunderdale stated that while the companies involved claim not
to have provided detailed information and were only seeking to conduct a
feasibility study, substantive information was provided to the
Government of Newfoundland and Labrador. The proposal put forth included
timelines for operations, estimates of employees to be hired, along with
a request of financial help from the Provincial Government totaling $52
million.
"While the actions of these companies have been disappointing, this does
not in anyway diminish the outstanding fibre resource present in central
Newfoundland," said Minister Dunderdale. "Our government is keenly aware
of the importance of this natural resource, as I know the people of the
area are. In cooperation with area residents we will continue with our
efforts to ensure the long-term viability of this region of our
province, despite the efforts of the opposition parties who wish to
stymie growth in our province."
- 30 -
Media contact:
Ken Morrissey
Director of Communications
Department of Natural Resources
709-729-5282, 685-6612
kenmorrissey@gov.nl.ca
2010 06 30
10:25 a.m.