NLIS 13
September 11, 2006
(Natural Resources)
Province still seeking
indemnity for future contamination at Argentia
Natural Resources Minister Kathy
Dunderdale said today that key timelines for the construction of a
commercial processing facility at Argentia are being compromised by the
federal government�s refusal to deal with the province�s request around
indemnification issues related to the former American naval base.
The province wrote the federal government three months ago requesting
that Inco be provided with the indemnity to allow for construction to
proceed on schedule at Argentia, the company�s originally stated
preferred site. The federal government has not responded, other than
with a verbal request for clarification that was quickly provided.
�We have written the federal government on four occasions on this issue
since June 6,� Minister Dunderdale said. �The Government of Canada owns
this property and is carrying out a remediation program at the site. Any
indemnity for costs and business losses Inco may incur as a result of
past contamination should be the responsibility of the federal
government. It is critical that the federal government address this
issue before key project timelines are compromised.�
The requests were sent to federal Public Works and Government Services
Canada Minister Michael Fortier and outlined the critical importance to
the project timelines of resolving these issues.
�We have now reached a critical stage in the project schedule as time is
limited within the Voisey�s Bay Development Agreement for Inco to make
its decisions and plans regarding the construction and operations of the
commercial nickel processing plant,� Minister Dunderdale said. �We are
requesting that the federal government make it possible for the
operation to remain at Argentia. We believe the federal government can
assist in this by providing Inco with the indemnification.�
Inco notified government on November 30, 2005 of its decision to locate
the planned processing plant at a site in the province other than
Argentia, as per Section 4.6.4 of the Development Agreement. Based on
its own assessment of environmental, legal and business risks, Inco has
concluded that it is not economically feasible to use Argentia as the
site for a commercial nickel processing facility. The company has since
registered a proposed site in Long Harbour for environmental assessment.
In the Development Agreement Inco signed with the province in 2002, Inco
committed to constructing a commercial processing plant at Argentia
�unless the environmental conditions at Argentia would make it not
economically feasible� to do so. In that event, Inco committed to
locating the plant at another site in the province.
Media contact: Tracy Barron, Communications, (709) 729-5282, 690-1703
2006 09 11
4:55 p.m. |