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Since the earliest stages in the development of the Voisey’s Bay project, we have been working with government, aboriginal communities and other stakeholders to ensure that environmental considerations are integrated and accounted for in all aspects of the project. The environmental management and monitoring of the Labrador site involves a high level of aboriginal participation and extends to virtually all aspects of the environmental management process. We incorporate the traditional knowledge of aboriginal people in the ongoing management and monitoring of our daily environmental performance.

In 2004, VBNC’s environmental protection and planning efforts focused primarily on the site in Labrador, where the construction program is nearing completion. The primary focus of the monitoring program was to ensure that all construction work was conducted in compliance with provincial and federal legislation, permit conditions and VBNC’s Environmental Protection Plan (EPP). The EPP and the Job Environmental Analysis are important tools used by environmental personnel to maintain compliance and maximize the effectiveness of mitigation and pollution prevention measures.

As we make the transition into the operational phase of our project, environmental protection will continue to be a top priority. To help realize this goal, we have consolidated all relevant provincial, federal and Inco corporate environmental guidelines in an integrated Health, Safety and Environmental Management System based on internationally accepted standards - ISO 14001 and OHSAS 18001 principles. Hazards have been assessed for environmental aspects and mitigative controls developed where required. The EPP for the operations phase has been prepared to provide a common reference document for conducting environmental monitoring by all environmental personnel.

At Argentia, operation of the hydromet demonstration plant, which will begin in late October 2005, will be used to gather important environmental information for the planned commercial processing facility that VBNC will begin constructing in 2009. Researchers will be looking specifically at residue produced from the hydromet process, which will be stored and monitored on site. The demonstration plant team will monitor and implement tests to determine how best to handle residue in an environmentally safe way. An EPP for the operations phase of the hydromet demonstration plant will be developed to provide a common reference document for environmental monitoring and protection.

If the R&D program results in the successful development of a technically and economically feasible hydromet process technology, we will proceed with the design, engineering, construction and operation of a commercial hydrometallurgical processing plant. If it is determined that a hydromet plant is not technically or economically feasible, VBNC will construct a commercial hydrometallurgical nickel-matte processing facility or other similar facility incorporating a proven state of the art technology to produce finished nickel product.

Both process options for the commercial facility will be registered for environmental assessment in the fall of 2005. Construction is scheduled to begin in 2009 and be complete by the end of 2011. Studies of residue produced at the mini-pilot plant are underway and environmental management options for residue are being investigated, including an environmental and engineering risk assessment. Inco is also conducting environmental and engineering due diligence studies of the Argentia site, which was previously occupied by the U.S. Military as a naval air station.