Newfoundland & Labrador

In 2004, we made significant progress in developing our world-class Voisey's Bay nickel-copper-cobalt project. Over the course of the year, we moved into the final construction phase of the project – which included the building of a road network, airstrip, deepwater port facility and employee housing and recreation complex – and began the transition to operations. We anticipate beginning concentrate production in early August. We expect to ship the first concentrate from Voisey's Bay in late 2005, six months ahead of the original schedule. We have also moved forward with the construction of the demonstration plant in Argentia, Newfoundland. We continued our research and development program at the mini-pilot plant located in Mississauga, Ontario.

Such accomplishments are a testament to the efforts and hard work of the more than 3,200 people who were working on all facets of the project in 2004. Our achievement also reflects our successful partnerships with the aboriginal peoples of Labrador as well as the government and people of Newfoundland and Labrador in areas including research and development, employment and training and environmental stewardship.

We are confident that the relationships we have built will continue to strengthen and deliver benefits for all stakeholders as we move forward with this project.

  2004 PERFORMANCE HIGHLIGHTS

• Honoured our commitments as set out in the comprehensive Development Agreement with the Province of Newfoundland and Labrador.
• Continued to honour our commitments for employment, training and business partnerships, as well as other considerations, as outlined in the Impact and Benefits Agreements (IBAs) with Labrador Inuit Association (LIA) and Innu Nation.
• Continued to build relationships with communities in Newfoundland and Labrador as we prepare to make the transition from the construction phase to operational readiness.
• Focused on our research and development of hydrometallurgical processing technology by continuing to use the mini-pilot plant as an ongoing vehicle for training in preparation for the construction and development of the demonstration plant in Argentia, Newfoundland.
• Continued to work with Memorial University in its development of the $13 million (Cdn. $20 million) Inco Innovation Centre.
• Began construction in Argentia of the demonstration plant.
• Provided the Town of Placentia with a contribution of $270,000 (Cdn. $350,000) to support its efforts to upgrade key components of municipal infrastructure.
• Contributed $38,500 (Cdn. $50,000) for scholarships at the College of the North Atlantic.
• Continued to work with the Government of Canada to benefit from $120 million (Cdn. $150 million) for initiatives in areas such as aboriginal training and business development, and research and development that would result in highly skilled jobs in the province.
• Announced a total contribution of $400,000 (Cdn. $500,000) over the next five years toward the development of a new community centre at Nain, Labrador to promote aboriginal culture and develop new suicide-prevention programs.
• Initiated negotiations on a Shipping Agreement with LIA covering a broad range of topics related to shipping through marine waters covered in the final Inuit Land Claim Agreement.

  2005 GOALS

• Continue to use the mine and concentrator construction phase to prepare the maximum number of aboriginal people for safe employment in the first year of operations.
• Complete Shipping Agreement with LIA.
• Continue to implement the IBAs in a timely, practicable fashion and in accordance with VBNC's commitments.
• Further develop a strong and resilient relationship with LIA and Innu Nation leadership and members, characterized by an ability to understand project needs.
• Involve Innu and Inuit businesses in the operations phase contract opportunities within the project's business model parameters and build aboriginal business capacity.
• Continue to use the hydrometallurgical mini-pilot plant, located in Mississauga, Ontario, for on-the-job training.
• Develop a Community Well-Being strategy and work in partnership with existing service providers in Innu and Inuit communities.
• Recruit the operations workforce taking into account training efforts and commitments to LIA and Innu Nation and the Province of Newfoundland and Labrador.
• Continue to energize and drive training levels in Labrador to be more proactive in attaining our workforce targets during the remaining construction phase.
• Achieve a 20 per cent employment target for women at the hydrometallurgical demonstration plant in Argentia, Newfoundland.