• Progress has been mixed on Voisey's Bay, one of the richest, lowest-cost, nickel sulphide deposits in the world. The mine/mill project was released from the joint federal-provincial environmental assessment process in August 1999, and progress was made in the negotiation of impact benefit agreements (IBA) between Inco, the Innu Nation and the Labrador Inuit Association.

• Voisey's Bay Nickel Company is continuing with surface-based exploration and study of known deposits in the Voisey's Bay area, while Inco recently staked 1,001 claims covering over 2,500 square kilometres south of Voisey's Bay. Prospecting, geological mapping and geochemical programs are currently under way.

• Inco had proposed construction of a pilot facility to test a new hydrometallurgical technology, but would not commit to full processing in the province in the event that technology did not prove viable.

• Government maintains the position that full processing of nickel concentrate must occur within the province.

• Talks between Inco and the province were suspended in January 2000.

The Lower Churchill power project represents a major untapped resource in Labrador. It offers the opportunity to develop a significant block of competitive energy without causing major harm to Labrador's environment. Since 1996, the Government of Newfoundland and Labrador has been working to develop this resource.

These efforts have already reaped benefits for people in this province.

• The Guaranteed Winter Availability Contract, signed in June 1999, will provide $1 billion to the province until 2041, thus protecting the viability of CF(L)Co.

• The 130 MW Recall Agreement, signed in March 1998, will also provide many financial benefits to the province. To date, almost $80 million has been received under this contract — considerably more than the province's share of the take from the Upper Churchill contract over that same period of time.

• The CF(L)Co. Shareholders' Agreement, signed in June 1999, ensures Labrador West will have a competitive long-term supply of power after 2014, when the current Twinco agreement expires.

• Deregulation in the United States resulted in a pause in Government negotiations with Hydro Quebec over the past summer. In a deal of this size, we must ensure the pricing is right. That was the major problem with the Upper Churchill. That mistake will not be repeated by this Government. It has to be the right deal — and the right deal means a fair price, with escalation.

• While negotiations with Hydro Quebec were paused, the time was not wasted. Negotiators met with several large American utilities, increasing our understanding of the marketplace as well as positioning ourselves with Hydro Quebec.

• In August, former Premier Brian Tobin and Premier Lucien Bouchard of Quebec decided a meeting of negotiators was warranted. These discussions continued early this fall on the basis of Newfoundland being the 100 per cent owner/developer of the Gull Island project and associated transmission in Labrador. Discussions were fruitful and additional progress is expected to be made in the coming months.

• The Lower Churchill is a project with significant benefits for Labrador, including a major block of recall power to address the future, long-term energy needs for residences, businesses and industrial users in Labrador.

• The civil works, powerhouse construction and building of new transmission in Labrador related to this multi-billion dollar project, will be a major employer of Newfoundlanders and Labradorians and provide significant revenues to Government for years to come.