'Milestone' deal

Rob Antle
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Long Harbour corp. and Vale Inco reach deal on property

The Long Harbour Development Corp. has reached a lucrative deal to sell wharf properties to Vale Inco in preparation for the company's nickel processing plant in the community. Telegram file photo

The Long Harbour Development Corp. has concluded an agreement to sell wharf properties to Vale Inco in a "milestone" deal that means a pot of millions for possible future work in the town.

"I think the town has a reason to be very excited about this," said Gary Keating, Long Harbour's mayor and chairman of the development corporation.

"There's a lot of towns in this province that could only wish they were in the position that the town of Long Harbour and Mount Arlington Heights will be into (now), and will move into in the future."

The recently completed sale agreement sees the corporation get $9.15 million from Vale Inco.

On the other side of the ledger, the development corporation bought out a long-term lease agreement with Maher's Industrial Services for $4.8 million, and spent roughly $2 million for the removal of an old vessel from the south side of the wharf, Keating said.

Those expenses leave the Long Harbour Development Corp. with a kitty of $2.35 million.

Keating said there are a number of potential initiatives being considered for the cash.

Those include upgrading and building new infrastructure in the town, helping volunteer organizations, marketing local companies, planning a local industrial business park and possible new recreation facilities in the area.

In 2000, the development corporation entered into a long-term arrangement with Maher's Industrial Services to find users for the site, Keating noted.

He said Maher's made a number of efforts over the years to secure a partner to co-develop the site, and also made an effort to sell it. But there was no success on either front, Keating noted.

"We were six years struggling, trying to get development on that site," he said.

In 2006, Inco announced the decision to locate its commercial plant at Long Harbour.

That sparked negotiations to buy out the lease agreement, Keating said.

In January, nickel giant Vale Inco and the province announced a deal allowing construction to begin this spring on the $2.2-billion processing plant in Long Harbour.

The province OK'd a 14-month extension, setting the deadline for completion in February 2013.

Vale Inco has committed that 77 per cent of the total project employment will be in Newfoundland and Labrador.

The project is expected to create 1,600 construction jobs per year and employ 400 people once it is running.

rantle@thetelegram.com

Organizations: Long Harbour Development, Industrial Services, Inco

Geographic location: Long Harbour, Newfoundland and Labrador

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Recent comments

  • Reality Check
    July 02, 2010 - 13:31

    Really Need: Deadline for completion is printed in the article above as Feb 2013. So, I would say benefits will be seen by then. It's really not that far off, is it?

  • Really need
    July 02, 2010 - 13:31

    Still lots of talk and still no action. Wonder when the dream will end and any benefits will be seen by the average person in the province?

  • Chad
    July 02, 2010 - 13:26

    It is a fact of life that to have indrustrial devolopment it is impossible to not have some kind ofindrustrial waste leftover.In Alberta it is the tar filled tailings ponds and I guess radio active slag in NL. The province of NL has complained for decades that there has been not enough work to keep their people home. But instead we have seen a continous stream of young trained workers head to the mainland, to places like Fort mac or Calgary, you agree so far Brad. With regards to a local bussiness man getting abig cut, would you rather a big US company get then money. And inturn the devolopment corparation with alot less. With this money the town will be able to do some work around the town maybe even arecreation facility, if there is enough people to support it. But your not one of them wright Brad. We don't live in a field of dreams you can't just build and they will come. For a town of 300 people, and very little young people it is hard to get the support for recreation facilities, and then you need people to VOLUNTEER to organize sporting events. The bigger the numbers the easyier it is. I guess before ERCO come the site was used for some form of recreation, with its sandy beah and all as I have been told. Those people found a new place for some me time and unfortunatly you have to do the same. With regards to the local people getting work, if they are qualified they should get the jobs. It has been laid out many times what an individual should do to increase their chances of employment and if they didn't it is all on them, no one else. Not even the mayor. With what has happen with the economy for the last 8 to9 months it may be harder to get the job you want. Oh thats right you don't need the work anyways your tied up with all that Alberta oil money. Oh sorry you don't get anything from the tar ponds...hahaha.. what a joke. True Newfees need work to live at home we are not just using it as a camp ground. Unfortunatly there has to be a fair size environmental foot print to make this happen.

  • Brad
    July 02, 2010 - 13:17

    $4.8 million for Mahers construction lease, what a joke, a couple of loaders and a bunch of scrap metal sitting on radioactive slag. Nice to see the money is being squandered as usual. How about a couple of jobs for the locals who actually want to work there(I never would) The town of Long Harbour will only see a pittance. Notice how the mayor says possible new recreation facilities , this is just a way out. The community has done nothing for recreation, and the few facilities they do have, have been falling apart for years. They have a sports commission, but no sports and nowhere to play them. I guess $9 million is a small price to pay for an entire ecosystem. I used that area for recreation since Erco was still operating, and it was an important part of my life, where is my compensation, or the hundreds of other people who used the area? We don't need the money, we need somewhere to camp, fish, hike like everyone else in Newfoundland and Labrador. I don't agree with the environmental mess they are creating, and I'll love to say I told you so.

  • Really Need
    July 02, 2010 - 13:16

    Might be further off for some people that are going to be filing for bankruptcy next week now due to not being able to obtain sustainable employment in the region or province. Lots of talk, but nothing to speak of. But I guess thats ok since in seven years all the money people will be pulling in here will make it all worth while, and those working now can foot the bill for those that have been forced out. Makes lots of sense now it does.

  • Reality Check
    July 01, 2010 - 20:19

    Really Need: Deadline for completion is printed in the article above as Feb 2013. So, I would say benefits will be seen by then. It's really not that far off, is it?

  • Really need
    July 01, 2010 - 20:19

    Still lots of talk and still no action. Wonder when the dream will end and any benefits will be seen by the average person in the province?

  • Chad
    July 01, 2010 - 20:12

    It is a fact of life that to have indrustrial devolopment it is impossible to not have some kind ofindrustrial waste leftover.In Alberta it is the tar filled tailings ponds and I guess radio active slag in NL. The province of NL has complained for decades that there has been not enough work to keep their people home. But instead we have seen a continous stream of young trained workers head to the mainland, to places like Fort mac or Calgary, you agree so far Brad. With regards to a local bussiness man getting abig cut, would you rather a big US company get then money. And inturn the devolopment corparation with alot less. With this money the town will be able to do some work around the town maybe even arecreation facility, if there is enough people to support it. But your not one of them wright Brad. We don't live in a field of dreams you can't just build and they will come. For a town of 300 people, and very little young people it is hard to get the support for recreation facilities, and then you need people to VOLUNTEER to organize sporting events. The bigger the numbers the easyier it is. I guess before ERCO come the site was used for some form of recreation, with its sandy beah and all as I have been told. Those people found a new place for some me time and unfortunatly you have to do the same. With regards to the local people getting work, if they are qualified they should get the jobs. It has been laid out many times what an individual should do to increase their chances of employment and if they didn't it is all on them, no one else. Not even the mayor. With what has happen with the economy for the last 8 to9 months it may be harder to get the job you want. Oh thats right you don't need the work anyways your tied up with all that Alberta oil money. Oh sorry you don't get anything from the tar ponds...hahaha.. what a joke. True Newfees need work to live at home we are not just using it as a camp ground. Unfortunatly there has to be a fair size environmental foot print to make this happen.

  • Brad
    July 01, 2010 - 19:58

    $4.8 million for Mahers construction lease, what a joke, a couple of loaders and a bunch of scrap metal sitting on radioactive slag. Nice to see the money is being squandered as usual. How about a couple of jobs for the locals who actually want to work there(I never would) The town of Long Harbour will only see a pittance. Notice how the mayor says possible new recreation facilities , this is just a way out. The community has done nothing for recreation, and the few facilities they do have, have been falling apart for years. They have a sports commission, but no sports and nowhere to play them. I guess $9 million is a small price to pay for an entire ecosystem. I used that area for recreation since Erco was still operating, and it was an important part of my life, where is my compensation, or the hundreds of other people who used the area? We don't need the money, we need somewhere to camp, fish, hike like everyone else in Newfoundland and Labrador. I don't agree with the environmental mess they are creating, and I'll love to say I told you so.

  • Really Need
    July 01, 2010 - 19:56

    Might be further off for some people that are going to be filing for bankruptcy next week now due to not being able to obtain sustainable employment in the region or province. Lots of talk, but nothing to speak of. But I guess thats ok since in seven years all the money people will be pulling in here will make it all worth while, and those working now can foot the bill for those that have been forced out. Makes lots of sense now it does.