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Gold/Mining/Energy : Inco-Voisey Bay Nickel [ T.N.V] -- Ignore unavailable to you. Want to Upgrade?

To: 1king who wrote (233)	5/4/1998 6:18:00 PM
From: Winer	Respond to of 1615

Well, subjectivity is a relative thing. I think when a writer weighs in with a personal read of what should really be the objective dissemination of information it serves to muddy the water. Here's a few more: Sat May.02,1998 CP Wire Voisey's Bay development hits snag By Michelle MacAfee The Canadian Press ST. JOHN'S, Nfld. - Inco Ltd.'s plans to develop a nickel mine at its Voisey's Bay site in northern Labrador hit another snag Friday when an environmental review panel said it needed more than the 2,000-page report already submitted by the company. But a spokesman said the request won't throw the company's overall timetable off course. "At first blush, we feel comfortable we'll be able to respond in a very timely basis," said Bob Carter, a spokesman for Inco's subsidiary Voisey's Bay Nickel Co. Ltd. in St. John's. "Our schedule for completing the overall environmental assessment process by the end of 1998 should stay intact." The company had hoped its submission, given to the five-member panel last December along with 4,000 pages of background material, would be enough to advance the project to the public hearing stage next month. But the panel, selected under a joint agreement between the federal and provincial governments and two aboriginal groups, identified several issues in the report that need further explanation. Specifically, the panel is seeking more details related to the company's proposed shipping system, alternative production timetables, waste management, impacts on nearby waters, mercury contamination, socio-economic effects, and monitoring and follow-up programs. "The approach we used was to go through the original criteria that was set out for Voisey's Bay Nickel and ask ourselves if there was enough information submitted to have a meaningful discussion at public hearings," said panel chairwoman Lesley Griffiths, of the consulting firm Griffiths, Muecke in Halifax. "We concluded the criteria was not met." The decision means extra work and expense for a company already struggling to stay afloat during the downturn in the volatile nickel market. Bond rating agency Standard & Poors cited the delays and uncertainty surrounding the Voisey's Bay project as a key reason for dropping its outlook on Inco to negative from stable Friday. Low nickel prices were also a factor in the rating. "If the nickel price remains at this low level for an extended period or the outcome of Inco's review of the Voisey's Bay project adversely impacts the company's financial performance, the ratings could be lowered," the company said in a news release. Inco's own review of the project, which includes the feasibility of the smelter and refinery complex in Argentia, Nfld., is expected to be completed in the next few months. A recent report by the U.S.-based Goldman Sachs investment house determined the project, as originally envisioned, is no longer economically viable. Premier Brian Tobin said his province does not want the mine rushed into production at the expense of the environment. "We think it's important the company get it right and take the time necessary so there is not a further delay," said Tobin. But a delay is possible if a federal court in Ontario rules in favor of a Newfoundland environmental group that wants the smelter and refinery to undergo the same public review process as the mine and mill. Inco recently entered an intense round of negotiations with the Newfoundland government in an effort to hammer out a deal for the project in the next eight to 10 weeks. GLOBE AND MAIL SAT MAY.02,1998 PAGE: B6 Inco asked to detail impact of Voisey's Bay ALLAN ROBINSON Mining Reporter A Canadian Environmental Assessment panel has asked Inco Ltd. to provide additional information on the potential effects of the proposed Voisey's Bay nickel and copper project in Labrador. The panel was responding to a four-volume Environmental Impact Statement filed by Inco last December, which analyzed both the environmental and possible socio-economic effects of the $350-million (U.S.) mine and mill complex. "We think we can respond quickly and we don't see that this will have an effect on our ability to complete the assessment by the end of 1998," said Bob Carter, manager of public affairs for Inco's subsidiary, Voisey's Bay Nickel Co. Ltd. The additional information will be subject to a 45-day public comment period, the Canadian Environmental Assessment Agency said. The panel will then have 15 days to decide whether to go ahead with public hearings. Inco and the government of Newfoundland are also scheduled to begin talks over the development of a smelter and refinery at Argentia, sources close to the negotiations said. The government has linked the granting of a mining licence with the construction of a smelter and refinery because it wants all of the processing to be done in the province. Among the shortfalls cited by the panel is Inco's failure to discuss the scale of the mining operation, given the existing market conditions and other constraints. Inco has been asked to discuss different scenarios that would change the life span of the mine. Inco was also asked to provide more information on the marine transportation system needed to haul away the valuable mineral concentrate after milling, as well as for an assessment of the possible effects on seals, shellfish and seabirds. The agency also asked Inco to address the possible presence of chemicals in the rock that could affect the food chain as a result of mining.

To: 1king who wrote (233)	5/4/1998 6:23:00 PM
From: Winer	Respond to of 1615

Province, Inco back at table Evening Telegram Reporter: CRAIG JACKSON 98/05/01 Premier Brian Tobin confirmed Thursday the province and Inco are again engaged in talks to hammer out a deal to develop the massive Voisey's Bay mineral find. Tobin told reporters outside the House of Assembly that he can confirm the report which appeared in Thursday's Evening Telegram. A source close to the talks indicated both Inco and the province are expected to reach a deal on developing the nickel, cobalt and copper deposit at Voisey's Bay in the next eight to 10 weeks. Tobin didn't indicate whether a deal is close but he did confirm there have been a number of meetings with Inco and the province over the past several weeks. But, he said, it's important to note the province hadn't held meetings with Inco for the past several months - until recently. "So the fact that we're talking again is a good sign, a good development," he said. "The tone of the meetings has been constructive, positive." Inco president Scott Hand and federal negotiator Bill Rowat, who's working on the Voisey's Bay file for the province, are expected to iron out details on taxation, electricity costs and the size of the project by the end of June and reach a memorandum of understanding that will lead to a mining permit. Despite the stalled talks over the past few months, Tobin remains confident Inco is committed to the project, particularly since the nickel giant made it clear at this month's shareholders' meeting that it's committed to the full project. On that basis, the province is prepared to talk with the company to ascertain what needs to be done to make the development happen, the premier said. Tobin said, though, he still hasn't relented on his position - no smelter/refinery means no mine.

To: 1king who wrote (233)	5/4/1998 6:30:00 PM
From: Winer	Respond to of 1615

Here's one bad piece of art, given that the writer went as far as to make a prediction (and was wrong): Puck drops today for Voisey's Bay project Evening Telegram Reporter: CHRIS FLANAGAN 98/05/01 Like the Philadelphia Flyers of the National Hockey League, the fate of the Voisey's Bay Nickel Company's 1997-98 campaign will be decided today. The Voisey's Bay joint environmental assessment panel was to announce this afternoon whether it will accept the company's gigantic 2,000-page environmental impact assessment (EIS) document and let VBNC advance to the next round - in this case public hearings - or humiliate the company's environmental team and send it packing for Labrador. The panel will only send the company back to the drawing board if there are "major deficiencies." The stakes are steep for both teams. A year ago, the Flyers made it to the finals and this year were expected to put up an even tougher fight. But after three losses in the first round they're nearly chumps, one bad night from humiliation. If the Flyers don't win tonight, wonder boy Eric Lindros may be traded to Toronto (or New York) and general manager Bobby Clark could be shopping for another team. Season ticket holders may revolt. A year ago the Voisey's Bay Nickel Company was skating towards a champion mine/mill and smelter/refinery and was expected to be in the thick of a major construction schedule in 1998. But after three setbacks - a court decision denying infrastructure construction; a huge drop in world nickel prices; and a unanimous call for a writedown - VBNC is at least a year behind schedule and one bad day from humiliation. If VBNC doesn't receive approval for its EIS, company president Stew Gendron could be sent to Toronto (or Sudbury) and Inco chairman Michael Sopko could be shopping for another mining company. Shareholders may revolt. Granted, Sopko and Rick Gill have already stated 1998 is a writeoff as far as a construction start goes. But the company has stated it may be entertaining starting infrastructure construction this year. With approval of the EIS today, hearings would run from June 8 to July 24 at the latest, and the environmental panel could theoretically pave the way for a permit by October. VBNC could then start an airstrip and road system at Voisey's Bay this year, getting the jump on construction for 1999. Combine that with new headway in negotiations with the province - Premier Brian Tobin confirmed Thursday a Telegram report indicating the negotiations are on an eight- to 10-week fast track, although the province is anticipating reduced nickel production - and it just might be a trophy year for VBNC. There's even talk that Newfoundland's land claims settlement with the Labrador Inuit Association (which is crucial for VBNC's talks with the LIA) will wrap up in August when the lawyers dot the i's and cross the 255 million dollar signs. But throw an EIS wrench into the works and the company will be banging its head against the wall, singing the corporate blues. Provincial talks could be delayed, impact-benefit agreements with aboriginal groups will stall. Members of the joint environmental panel remained tight-lipped Thursday. "I would say no comment," one of the five panel members said Thursday when asked if it was a tough decision. Unfortunately The Telegram went to press long before the puck was dropped in Philadelphia and before the panel's decision was sent over the wire. But if I were a betting man, I'd say good night Philly and hello Voisey's Bay public hearings on June 8.

To: 1king who wrote (233)	5/4/1998 6:38:00 PM
From: Winer	Read Replies (1) \| Respond to of 1615

GLOBE AND MAIL THU APR.30,1998 PAGE: B1 BYLINE: ALLAN ROBINSON Nickel giants hunting for cheaper way to dig: Falconbridge, Inco eye tropical projects BY ALLAN ROBINSON Mining Reporter A glut of nickel has hurt Falconbridge Ltd. and Inco Ltd. of late but the mining giants are looking for ways to get a lot more of it - a lot cheaper. The search has led Falconbridge and Inco, two of the world's largest nickel producers, to the French territory of New Caledonia in the South Pacific, where they are separately studying the viability of two major nickel mining projects. The two projects will use radically different technologies, but both Toronto-based companies will be mining nickel-bearing laterite deposits, a type of ore estimated to contain two-thirds of the world's known nickel reserves. "Changing technology is the next phase for the nickel business," said John Lydall, a mining analyst for First Marathon Securities Ltd. "It's a critically important factor in the nickel business today. The world is changing and everybody has to lower their operating costs. That is the key to survival." Laterite ores occur in tropical regions where the porous soil is leached by heavy rainfall leaving nickel, iron and cobalt behind. The ore close to the surface left after the sulphides are gone can be easily mined in open pits. The disadvantage of laterite ores is that typically they are very moist and require huge amounts of energy to dry and refine compared with sulphide nickel deposits such as found in Sudbury, Ont., and at the Voisey's Bay nickel deposit in Labrador. High oil prices in the the 1970s made these types of projects uneconomical. Energy needs continue to be a major cost component of extracting nickel from laterite deposits. Falconbridge said yesterday that it has signed a joint venture agreement with Societe Miniere du Sud Pacifique SA, a miner controlled by the government of the island's North Province, to explore the Koniambo ferronickel deposit. In return for spending $50-million (U.S.) on exploration and metallurgical studies, Falconbridge will earn a 49-per-cent interest. "If everything goes well, we expect to have completed the feasibility study within three to four years," said Lars-Eric Johansson, senior vice-president and chief financial officer. The smelter's cost is estimated at $1-billion. Inco is also planning its first mining venture in New Caledonia, one of the largest nickel producing areas with 20 per cent of the world's known nickel resources. Inco and the Bureau de Recherches Geologiques et Minieres, an agency of the the French government, are constructing a $50-million pilot plant at the Goro project, which is 85 per cent owned by Inco and 15 per cent by the Bureau de Recherches. Nickel is trading at around $2.50 a pound, down from an average price of $3.73 during 1995 and $3.40 in 1996. Inco, which is losing money, has made massive layoffs and closed some higher-cost mines, while Falconbridge is barely breaking even. The prices are being driven down by a surplus of nickel, not a lack of demand for it. Mining companies around the world are betting demand will continue to grow and the present glut will disappear in time. And in order to remain cost competitive, the leaders in the nickel business must develop new processes. Falconbridge plans to produce a nickel-iron alloy at a 54,000-tonne-a-year plant in New Caledonia using a conventional roaster and certain proprietary technology. Falconbridge already produces ferronickel from laterite ore at its mine in the Dominican Republic. Ferronickel is used to make stainless steel. Inco hopes to have its pilot plant in operation by mid-1999 and be in a position to make a full-scale production decision by 2000. The objective of the trial is to test an acid pressure leaching technology developed by the company, an Inco spokesman said. The technique is used on laterite ores to extract the nickel and cobalt in a solution and then the metals are separated using electricity. Initially, a commercial plant would be constructed to produce 27,000 tonnes of nickel and 2,700 tonnes a year of cobalt with the potential of doubling capacity. Already new nickel mines in Australia using new hydro-metallurgical processes to extract nickel are forcing nickel prices lower. Similar processes have also led to the construction of massive new copper mines in South America during the past few years.