Voisey's Bay Agreement # 2

Article 3
Description of the Project and Related Facilities

This section will eliminate any misconceptions of what the project actually is and what we - as Newfoundlanders and Labradorians - should expect in general.

3.1 The Project. The "Project" will comprise collectively the Underground Exploration Program, the Mine, the Concentrator Plant, the R & D Program, the Demonstration Plant, the Processing Plant and, if applicable, the Concentrator Plant expansion referred to in Section 4.5. The Processing Plant will be capable of processing concentrate and intermediate feeds containing nickel from other sources world wide, which will give the Processing Plant the capability of operating well beyond the life of the Mine.
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For the purposes of reading this section in proper context I must add - immediately - Section 4.5 as it is already referred to above.
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4.5 Underground Mine Development and Concentrator Plant Expansion. If the undergound exploration program described in Section 4.4 identifies Sufficient Reserves as contemplated by Section 4.4, the Proponent shall commence the development of an undergound mine or mines on the Leased Lands and an expansion of the Concentrator Plant in order to supply sufficient Nickel Concentrate to maintain the operation of the Processing Plant at full capacity. The Proponent estimates that this program will cost $750 million and employ an aggregate of 800 people.
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For the purposes of reading this section in proper context I must add - immediately - Section 4.4 as it is already referred to above.
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4.4 Underground Exploration Program. The Proponent shall undertake an underground exploration program which it estimates will cost $95 million and employ approximately 85 people. This program is intended to identify Sufficient Reserves at depth under the Leased Lands and, if there are such Sufficient Reserves, the Proponent shall develop a mining plan for the economic extraction of such Reserves. The intitial phase of this underground exploration program will be an advanced surface program which the Proponent estimates will cost $20 million, to commence in 2002 with completion targeted for 2006. Subsequent underground exploration will be scheduled to ensure that Sufficient Reserves under the Leased Lands are available to sustain full operation of the Concentrator Plant during the transition from open-pit operations to full underground mining operations, if applicable.
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This provides a basic overview of the project - it would be reasonable at this time for you to consider the value-added components of this project compared to the value-added components of our offshore oil projects.
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Please confirm the above Sections by reviewing for yourself the Voisey's Bay Development Agreement.