In support of this MOU, Grieg must also provide commitments regarding local sourcing of labour, equipment and supplies where available and to utilize local training and academic institutions for training and research needs.

"The potential for salmon farming in Newfoundland and Labrador is huge using modern sustainable farming methods. We believe the province can be developed into a substantial producer of fresh salmon products for the whole North American market. There is a continuous and increasing demand for high-quality salmon, and we believe that Newfoundland and Labrador can supply this. We are also delighted with the reception we have had here from the province, local communities like Marystown, and our local partners from Ocean Choice International. After Minister Hutchings' visit to Norway in July, 2014, we have been working closely with the Provincial Government which has worked very hard to establish a solid basis for this venture."
- Per Grieg Jr., the Grieg Group

The MOU sets out the obligations of the parties and commits Provincial Government funding of up to $45 million through the Aquaculture Capital Equity Investment Program. Provincial Government investment will be provided, through a 20-year agreement, in the form of an equity position in the company through preferred shares. Redemption of shares will begin in year eight at which time the Provincial Government will also begin to receive annual dividends of three per cent on its shares until the project is complete and the Provincial Government investment is fully repaid in 2035.

The MOU commits the parties to use all reasonable efforts to finalize the necessary formal agreements related to the project by January 31, 2016 subject to the completion of financial, technical, economic and any other analyses required by the Provincial Government. A copy of the MOU is available at: www.fishaq.gov.nl.ca/pdf/mou_grieg.pdf .

QUICK FACTS

• The Provincial Government and Grieg have entered into a MOU regarding Grieg's intention to establish aquaculture operations in the province which will more than double the province's current Atlantic salmon aquaculture production and is expected to create approximately 325 direct and 235 indirect/induced person years of employment.
• The project, valued at $251 million, will see the construction of a hatchery/nursery facility in Marystown that will produce seven million smolts annually to stock 11 sea cage sites, for the subsequent grow out and harvest of 33,000 tonnes of Atlantic salmon, to be developed along the western side of Placentia Bay.
• Annual production is scheduled to reach 33,000 tonnes by 2023. All processing must take place within the province and be to the final consumer stage, with a minimum of 75 per cent beyond dressed head-on.
• In support of this MOU, Grieg must provide commitments regarding project startup and development timelines, local sourcing of labour, equipment and supplies where available and to utilize local training and academic institutions for training and research needs.
• Grieg Newfoundland AS is part of the Grieg Group of companies in Bergen, Norway with 2000 employees in 15 countries whose main activities, in addition to salmon farming, are deep sea shipping, logistics and advisory services. Grieg has been involved in salmon farming for 23 years in Norway, Scotland and British Columbia, Canada.

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2015 10 26                              11:25 a.m.