This news release from Inco should help lil' ol' Banff. The delay at Voisey's Bay means that their production of cobalt will not reach the market as soon as expected, so the price of cobalt should remain high, giving extra returns to the Kasese project.
Neil.
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ww2.newswire.ca
INCO ESTIMATES ONE-YEAR DELAY IN VOISEY'S BAY PROJECT INITIAL PRODUCTION
TORONTO, Sept. 19 /CNW/ - In a presentation to be made later today to investors and analysts at a metals conference in London, M.D. Sopko, Inco Limited's Chairman and Chief Executive Officer, will indicate that Inco Limited (``Inco'') believes that initial production from the Voisey's Bay mine and mill facilities will be delayed by at least one year or until late 2000 at the earliest. This delay is based upon a review of the current status of the environmental review and approval process established under a January 1997 memorandum of understanding with the federal and provincial governments and aboriginal groups covering the mine and mill facilities to be constructed in Labrador as part of the Voisey's Bay project. Initial production of an intermediate concentrate product from the mine and mill had been projected by late 1999.
Inco currently estimates that, due to delays in this environmental review and approval process, the necessary environmental approvals for the mine and mill will not be obtained until late 1998 at the earliest or more than six months behind schedule. This process has included the development of guidelines for the required environmental impact statement broader in scope than had been anticipated in response to extensive community hearings held. The environmental impact statement to be submitted by Inco's wholly-owned subsidiary, Voisey's Bay Nickel Company Limited (``VBNCL''), as the next step in this process will, consistent with such guidelines, address important issues relating to aboriginal, cultural, socio-economic and other areas. Inco estimates that over $13 million (U.S.) has already been spent on environmental and related studies and work in connection with the mine and mill facilities.
Inco is currently in the process of reviewing a number of technical, financial and other issues relating to the Voisey's Bay project. This review, expected to be completed by late 1997, will take into account a number of outstanding issues and possible alternatives given the issues facing the project, including power requirements and the financial terms associated with any impact and benefits agreements with aboriginal groups which the project could afford.
This news release contains forward-looking statements regarding the Voisey's Bay project, Inco and VBNCL. Actual results may differ materially from these statements and projections depending on such key factors as the timing of receipt of necessary federal and provincial environmental and other approvals, settlement of aboriginal land claims, engineering and construction timetables, financing arrangements, supply and demand for metals to be produced, production levels, and metals prices.
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