From the outset of this project, we have recognized the need to establish a procurement and contracting philosophy that balances our need to receive the best-value on the goods and services we purchase with our goal of maximizing opportunities for companies in Newfoundland and Labrador. We also knew there were long term benefits associated with having a strong base of local suppliers that could support the Company once operations begin.

At Argentia, for example, we identified a need for a considerable number of fiberglass reinforced plastic (FRP) tanks for use in the hydromet demonstration plant. FRP tanks are necessary because of the corrosive nature of the chemicals used in the hydromet process, but none of the companies who made fiberglass products in the province were familiar with the kind of tanks we required. We expressed our interest in expanding the capacity of local suppliers to make the FRP tanks to the Government of Newfoundland and Labrador. In response, Government engaged a consultant to provide technical support to local fiberglass manufacturers. As a result, VBNC used the three provincial suppliers to manufacture most of the FRP tanks for the hydromet demonstration plant.

In Labrador, we recognize the importance of working closely with Innu Nation and Labrador Inuit Association to see that Aboriginal businesses develop the business skills and technical expertise necessary to capitalize on opportunities presented by the construction and operations phases of the mine and concentrator project. We believe that having such a capability developed within Aboriginal businesses is a key ingredient in improving long-term sustainability of the communities in which those businesses operate.

To that end, we developed a process governing how suppliers are selected to provide goods and services that is aimed at maximizing the participation of businesses in Newfoundland and Labrador. By the end of 2004, VBNC had committed $810 million in procurement for the Voisey’s Bay project. Of this amount, $672 million went to Newfoundland and Labrador companies, including $496 million to aboriginal businesses. Specifically, contracts were awarded to companies supplying services such as surveying, quality assurance and laboratory testing, catering and housekeeping, site security, fixed wing and helicopter transport, marine transportation, exploration drilling and civil construction.