Newfoundland's premier is expected to meet with officials at Inco Ltd. in the near future to work out final details of a deal to develop Voisey’s Bay mine in Labrador. Work at the mine could begin as early as June if a deal is made, notes a company official. There are a few issues still to be discussed surrounding the $5.5-billion mineral-rich project.
The company and the province have been negotiating for years to develop the Voisey’s Bay project, one of the largest discoveries in decades.
Inco has not yet formulated how much of Labrador’s nickel and copper ore would be processed in Newfoundland.
Economic benefits for Labrador Native groups, and financing help from the federal government are other issues that must be discussed.
Since the production of stainless steel is on the rise, executives expect a world shortage of nickel by 2005.
Two of the world’s largest nickel discoveries, Voisey’s Bay and Goro in the South Pacific, could put Inco in a better position to meet that demand.
Despite Inco’s interest in the Voisey’s Bay deal, not much progress has been made thus far.
Newfoundland’s premier commented on the local CBC radio station stating that no meeting has been scheduled with Inco and no agreement has been made on the processing of ore.