Voisey’s Bay deal hits the homestretch

Reuters reports that Newfoundland’s legislature has approved a 30-year deal with Inco (N-T) to develop the Voisey’s Bay nickel project in Labrador.

Following three days of debate, the province’s House of Assembly voted 28 to 18 in favour of the deal. The deal got the nod from all members of the governing Liberal party plus two members of the opposition.

Those in the legislature opposing the deal point ed to the company’s plan to ship Voisey’s Bay ore to Sudbury, Ont., or Thompson, Man., for smelted until the Argentia processor is up and running.

The last hurdle standing in the way of the project is a vote by the Innu Nation and the Labrador Inuit Association, the two main First Nations groups affected by the project. The two are slated to vote on Monday and have already signed impacts-and-benefits agreements with Inco.

If okayed, preparatory construction for a mine and mill at Voisey’s Bay and either a hydrometallurgical plant or a conventional refinery at Argentia would begin in July. A final feasibility study on mine production is slated for completion by the end of 2002. Mine construction would start in 2003 and first production would come in 2006.

Inco has budgeted US$1.9 billion for the project, including sustaining capital for a 30-year mine life. Mine and mill construction, and related infrastructure, would take up about US$470 million of the budget, and a commercial-scale hydrometallurgical plant is estimated to cost US$530 million.