The following statement was given today in the House of Assembly by the Honourable Tom Marshall, Minister of Natural Resources:

Economic and Employment Opportunities Secured with Underground Mine

Mr. Speaker, I rise in this Honourable House today to announce that for the first time in the history of the Voisey’s Bay Development Agreement, we have achieved the commitment to develop an underground mine in northern Labrador.

This commitment was secured through amendments announced on March 28 which further strengthen the original agreement made in 2002 between the Provincial Government and Vale Newfoundland & Labrador Limited.

The development of the underground mine will extend the Voisey’s Bay mine life by at least another 15 years and provide hundreds of construction jobs after sanction in 2015. Once in operation, employment is estimated to be 720 workers, an increase from the current mine employment of about 285.

An underground mine is important to the continuity of operations at Voisey’s Bay and will provide a future feed supply for the Long Harbour nickel processing plant. The agreement allows additional time for construction of the plant in Long Harbour and provides a limited exemption from the primary processing requirement over the next three years. This ensures that operations at the Voisey’s Bay mine site will be uninterrupted, as well as result in enhanced industrial and economic benefits and additional revenue to the Provincial Government of over $100 million over three years.

Mr. Speaker, with the promise of underground mining and ongoing construction at the Long Harbour site, the Voisey’s Bay project has greatly exceeded original expectations. Projects such as this ensure the province will reap the full benefit from development of valuable mineral resources with new employment and economic opportunities.

We will continue to support future mining operations that ensure maximum benefit for the people of Newfoundland and Labrador.

Thank you.

2013 04 15                                1:55 p.m.