Ottawa won't get involved in Argentia debate

The federal government has decided not to get involved in the dispute between Newfoundland and Labrador and Inco over the company's proposed nickel-refinery location.

The refinery was originally slated for construction in Argentia, but Inco later moved the project to Long Harbour. An Inco spokesperson says the location was based on a number of factors, including the fact that building the processing facility in Argentia would threaten a watershed.

The provincial Department of Natural Resources has been calling on Ottawa to step in and push Inco to build the refinery in Argentia.

Natural Resources Minister Kathy Dunderdale believes the company could still be enticed to build in Argentia if Ottawa could provide some legal protection to the company so that it would avoid any potential environmental liabilities at Argentia.

Dunderdale said the province wants to be satisfied that it did everything it could to keep the company in Argentia.

"This is not about one community or another. What we're trying to do as a provincial government is ensure that all the options with regards to Argentia are explored," Dunderdale said. "Commitments were made to Argentia."

According to Glen Hynes, the director of the federal Public Works Department in the province, Ottawa is not about to step in.

"For us, that's really subject to the Voisey's Bay development agreement and that's between the province and Inco and really the federal government has no part in that,"Hynes said.

"We don't have a position one way or the other on the location of the site."

Meanwhile, it appears the company has already moved beyond the Argentia debate. Incohas begun the environmental assessment process for its proposed site in Long Harbour.