Our Communities: Building Strong Relationships

The Voisey’s Bay project is very much about relationships, including partnerships with the federal and provincial governments, and uniquely with aboriginal communities.

In hiring for our Labrador operations, we are committed to giving first consideration to aboriginals, Labradorians and Newfoundlanders. And we intend to ensure that benefits arising from all aspects of the project are maximized for the province and its people.

The IBAs signed by Inco and Innu Nation and Labrador Inuit Association provide specific industrial and employment opportunities and cover a wide range of topics including environmental protection, education, training and employment, and protection of aboriginal social and cultural values.

“By training aboriginal people, our partnership strengthens communities and develops a pool of indigenous workers for the Voisey’s Bay development,” says Phil du Toit, Managing Director of VBNC. “By following through over the next 25 years or so, we’re confident we will build Voisey’s Bay into a successful project. And we’ll build stronger local communities at the same time.”

A Promising Beginning

Although initial shipment of concentrate from Voisey's Bay is not expected to get underway until 2006, VBNC is already making a real and positive difference in the lives of individuals and communities in Labrador and Newfoundland. We have made significant progress on the employment, business and community development fronts.

Creating Employment

Throughout 2002 and 2003, VBNC worked to realize the ideals and goals of the IBAs, particularly in the areas of aboriginal employment (primarily through our contractors) and business opportunities.

In 2003, the construction workforce at the Voisey’s Bay mine and concentrator site was in excess of 1,000 people. An excess of 90 per cent of these employees are from Newfoundland and Labrador and over 30 per cent of the construction workforce was comprised of members of LIA and Innu Nation.

For more detail on the various programs and initiatives we introduced to recruit and train aboriginal employees in the construction phase of our operation, read the Aboriginal Relations section of this report.

Promoting Business Enterprise

“We have awarded contracts valued at Cdn. $464 million on procurement for the mine and concentrator project this year,” says Bob Carter, Public Affairs Manager of VBNC, “and the lion's share, Cdn. $290 million of that has gone to aboriginal businesses.”

VBNC has awarded a three-year $100 million (Cdn. $140 million) contract, for example, to IKC/Borealis for mine and concentrator construction. The company is a joint venture between Innu Development Ltd. Partnership, Peter Kiewit Canada Ltd., Labrador Construction Ltd. of Happy Valley-Goose Bay, H.J. O’Connell Ltd. of Labrador City, and Torngait Services Ltd. of Nain. “The civil contract award is an excellent example of the kind of business arrangements we have forged with aboriginal companies,” says Phil du Toit, VBNC’s Managing Director.

Strengthening Our Communities

VBNC continues to support communities in Newfoundland and Labrador through sponsorship and donations to local organizations. In 2002 and 2003, we provided $1 million (Cdn. $1.4 million), including the $850,000 (Cdn. $1.2 million) donated to the Innu Healing Foundation, to support civic, community, cultural, health and educational initiatives and build relationships in key communities.

In addition to these sponsorships and donations, VBNC made several significant community investments.

Investing in Innovation

The company has committed $13 million (Cdn.$20 million) for the Inco Innovation Centre at the St. John’s campus of Memorial University. The Centre will enable Memorial’s scientists, engineers and senior students to develop leading edge technologies to support advanced exploration techniques and provide support to chemical process engineering, including the Inco Hydromet facility underway at Argentia. “I believe the Centre will help transform our society and our economy into a knowledge-based economy,” commented Dr. Axel Meisen, President of Memorial University.

Focus on Health Care

Both the provincial government and VBNC recognized the need to replace the Melville Hospital in Happy Valley-Goose Bay. Built in the 1950s, the aging institution was becoming increasingly costly to maintain and operate.

As a result, we contributed $10 million (Cdn. $15 million) over the past five years to help build the Labrador Health Centre in Happy Valley-Goose Bay, Labrador. The new facility boasts 30 beds and provides 24-hour care in acute, primary and secondary health services to some 14,000 residents of Happy Valley-Goose Bay and northern Labrador communities.

In a statement to the provincial legislature in the spring of 2003, the Minister of Health and Community Services thanked VBNC for its continued investment in the health needs of the people of Labrador. In his remarks in the legislature, he said, “We value the organizations and individuals who partner with us to provide quality health care... The Labrador Health Centre... is a beautiful facility which has significantly improved the health care needs and community service system of this province.”

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