Inco Proposes New Nickel Plant In
Newfoundland
15:10 Thursday, November 25, 1999
ST. JOHN'S, Newfoundland (Reuters) - Inco Ltd., the western world's
biggest nickel miner, plans to build a ``leading edge'
hydrometallurgical plant in Newfoundland to process ore from its
massive Voisey's Bay deposit, the province's mines minister said
Thursday.
Although Newfoundland said it had not yet reached a deal with Inco,
the company's proposal marks an about-face in its plans for the
project, seen as having a 25- to 30-year life span. Inco had been in an
impasse with the province, with the company steadfastly insisting it
would process ore from the huge base metals deposit outside the
province.
In a briefing to the province's cabinet, Mines Minister Roger Grimes
said Inco was poised to build ``a leading edge hydrometallurgical
plant' in the province to process nickel metal. The plant would be the
first of its kind in the world.
Although the proposal sets the stage for the launch of more formal
talks, which could lead to the province granting a mining permit for the
Voisey's Bay deposit, the mines minister cautioned that approval of the
plan was far from complete. The potential breakthrough came after two
days of informal talks in Toronto.
``The government and Inco do not have a deal. We have not received a
formal comprehensive proposal from Inco. Until we receive such a
proposal, we cannot determine with certainty whether we have the basis
to resume formal negotiations,' Grimes said in a statement.
The Newfoundland government has refused to issue a mining permit
for Voisey's Bay, a base metals deposit in northern Labrador, until
Inco agrees to build a smelter, estimated to cost C$1 billion, so that ore
from the project can be processed within the province.
Inco has argued that a smelter in Newfoundland is not economically
viable and has only committed to building a mill at the Voisey's Bay
site, from which it would ship concentrates to its existing operations in
Ontario for further processing.
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