The Argentia Management Authority Responds

Sue's Blog posted a story on Voisey's Bay a while ago called:

Timelines Voisey's Bay and the Minister of "?" and the Strike

I am pleased to post a response and addtional information supplied by Ken Browne, General Manager of the Argentia Management Authority.

Just read your Blog and wish to correct a misunderstanding. INCO/VBNC are not ahead of schedule on the "test plant" (Demonstration Hydromet Plant) by virtue of clause 4.3.2.1 which restricts the shipment of Nickel Concentrate out of the Province prior to "Demonstration Plant Completion Date". INCO shipped the first concentrate out of Labrador within days of the opening of the Demonstration Plant.

INCO/VBNC had an "Accommodation Agreement" from The Federal Government of Canada and the Argentia Management Authority Inc. for a year before they notified the Province that they found the Agreement not to their satisfaction. Perhaps you are right the Province shouldn't be concerned with timelines INCO obviously isn't. However the Minister is also acting in a professional manner trying to ensure this major company is not given an excuse to break their agreement with the Province that could be traced back to inactivity by the Province. INCO is the manufacturer of any timelines that could be broken at this point in time.

You quote 4.6.4 of the Provincial Development Agreement in your Blog that refers to environmental conditions AT Argentia and it should be interesting to note that INCO uses the same CCME guidelines for environmental clean up that the Government of Canada uses. INCO says Canada has done an "excellent job of cleaning Argentia". If CCME would be used to clean the Long Harbour Greenfield site when INCO is finished processing do you find it ambiguous on INCO's part that CCME guidelines are not sufficient for INCO in Argentia?

I look forward to your future presentation on the law representing the INCO Agreement and hopefully it will explain to INCO how the Development Argeement is a contract with this Province and a contract, is a contract that is a contract. The Province has informed INCO that their reasons for leaving Argentia are invalid and are holding them to their commitment to locate in Argentia. They continue to defy our elected government, does that strike you as a responsible company whose social policy states " We are committed to behaving ethically and with integrity, serving as Stewarts of both natural resources and our products--- and respecting the people who live and work in the communities where we operate." Argentia found out INCO wished to leave Argentia from a newspaper on a Saturday morning in cold January 2006; is that acting with integrity and ethically after the AMA worked with group tirelessly for 8 years?

I hope the above adds some information to your files and if we can be of assistance please advise.

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Coming next week - continued discussion of the Voisey's Bay Agreement and the laws of Newfoundland and Labrador that the Agreement is subject to.