Humber West post mortem

Granter won. 

Watton lost.

Myers came a distant third.

Tories held the seat and they still do.

That’s the simple result and for the truly simple, that’s all they will see:  no change.

Take a deeper look, though, and  you have a really interesting set of results. The figures used in this post are from Elections Newfoundland and Labrador’s website.

Over the three Danny elections, he polled an average of 3728 votes.  In the 2001 by-election, Williams polled 3606.  In 2003, Williams polled 3823 and in 2007, he actually polled fewer votes:  3755.

Vaughn Granter polled 2109 votes.  That’s 56% of Danny’s average over three elections.  He took 63% of the turnout but consider that Granter left home almost one Tory vote for every Tory vote he got.

Of course, it wasn’t Granter who left them home although the results suggest this was not any great endorsement of the local high school principal.  This by-election was really about Tom Marshall, Danny’s West Coast organizer.  Marshall campaigned hard for Granter, right down to an attack on ACAP debate organizers and their integrity.  And then there was the curious decision to leave the Premier home and bring out Danny Williams for some last minute campaigning. 

But still, for all that the Tories only managed to get 56% of Danny’s vote to the polls.
Meanwhile, Liberal Mark Watton garnered 1097 votes in his first time out.  That’s actually larger than the three-election average of 1088. The Liberals turned out 79% of the average for 2001 and 2003, their best results during the Danny Williams period.

Turnout was also down, coming in at  slightly less than 40%.  Turnout in the two general elections and the 2001 were – chronologically – 53%, 61% and 60%.

So sure, on the surface things look the same now as they did last December as far as seat count goes.

Just below the surface, though, lots of things seem to be changing.

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Think federal equity stake

So the provincial Conservatives are still looking to Uncle Ottawa for a loan guarantee to build the Danny Williams Memorial Money Pit, a.k.a Muskrat Falls and a bunch of transmission lines. This is a really old story.

Danny Williams claimed he had a commitment at one point but for some reason the provincial Conservatives have to keep asking for it.

In the latest version, Kathy Dunderdale – Williams’ chosen heir – is asking again, and Prime Minister Stephen Harper is carefully examining the whole project that he supposedly already committed to fund.

Well, at least that’s what Kathy told us what Stephen said which is basically what happened before when Danny told us over an dover again that Stephen gave a loan guarantee which he apparently never did since Danny and Kathy have to keep asking for it.

Yes, yes, it is just more of the same but let’s just make this really simple.

Let’s remind everyone of what Stephen Harper said in 2006 when Danny Williams asked him to finance the Lower Churchill:

A Conservative government would welcome discussions on this initiative and would hope that the potential exists for it to proceed in the spirit of past successes such as the Hibernia project.

Hibernia project.

1992.

8.5% Equity stake.

How big a piece of the Muskrat Falls pie is Kathy willing to sell to Stephen Harper to build Danny Williams’ legacy?

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Kremlinology 32: the St. Valentine’s Day Massacre

Since 1949, not a single Premier has left office and then come back later to campaign on behalf of a by-election candidate for his party while his party was still in power.

Not one.

Once they resigned, they were gone.

They handed over the keys to the eight floor washroom and buggered off to the sun or the Wet Coast or whatever they were up to after quitting.

But not the Old Man.

In Humber West, the Conservatives under the curious leadership style of Kathy Dunderdale flew Danny Williams out to campaign for their hand-picked candidate.

Vaughn Granter seems to be having some tough sledding in the by-election in Williams’ old seat.  Granter is usually seen practically running from door to door, bundled up against the cold like some blue-clad moustachioed gnome.  CBC’s Doug Greer caught Granter on one portion of his frenzied campaign and heard yet again about Granter’s extensive experience in dealing with parents and students.  This is not surprising since Granter is a teacher but it does not logically follow that a high school principal is a natural community leader ready to step into the shoes vacated by one Danny Williams, Q.C (Quixotic Conservative).

Hisself’s sudden appearance smells of concern in the Connie bunker about Granter’s chances. Put that with Tom Marshall’s appearance on open line trying to claim the environmental debate his candidate buggered was somehow tainted.  Then add Tom’s unexplained cancellation of a budget consultation on polling day and you have some pretty solid clues that all is not well with Danny’s legacy in Corner Brook.

The fact that Danny tried to claim the seat is still his – he left it vacant on December 3 – seems all the more curious.  What really demolished any lingering doubts about Granter’s current status on the leaderboard was Danny’s use of The Phrase:  “Nothing could be further from the truth” to deny troubles for the provincial Tories in the mill town. More often than not that phrase used to signal that one could not be, in fact, any closer to the truth.

Danny’s sudden appearance in Humber West may do more than signal Vaughn Granter’s in trouble and may lose the by-election.

His appearance suggests Kathy is not up to the job or, much worse, that maybe she is merely the premier for show.  The real leader had to come out of hiding to finish the job for his ersatz replacement.  On the face of it, one can easily think that Dunderdale and her entire team can’t win a by-election in a supposedly safe seat without Danny.  You have to wonder why. 

One must also wonder why Kathy Dunderdale spent so little time campaigning in Corner brook.  Dunderdale did make a brief appearance in the campaign early on and a couple of cabinet ministers showed up.  For the most part, though, Kathy hasn’t been out running around with the candidate she wants in the House with her.  She hasn’t even been heard talking him up all that much.  What gives with that?

In a manner of speaking, Hisself’s sun-tanned appearance is a bit like taking a Tommy gun to Kathy Dunderdale’s leadership.  He’s shot it full of holes. 

If Mark Watton wins on polling day or even comes a decent second, people around the province will start to wonder about her her ability to lead the party and the province.  Sure the faithful and the pitcher plants will cheer and pretend all is well.  But  among the politicians and the politically inclined, the view may be decidedly different. 

There may well be questions about Dunderdale’s ability to do the job.  In a caucus where her leadership does not have deepest of deep support, there could be a move to replace her before she gets to wear the crown officially.  Political parties in Newfoundland and Labrador aren’t known for their internal stability when unfettered ambition smells the stink of weak, ineffectual leadership.

Just think of it this way:  unless Vaughn Granter blows Mark Watton into dust at the polls, Danny’s trip to Corner Brook will be seen as the St. Valentine’s Day massacre of Kathy Dunderdale’s political credibility and maybe her career.

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Signs of the Granterdannerung #hwblxn

First Danny Williams emerges from his hiding place to campaign in Corner Brook on behalf of the hand-picked Conservative candidate in Humber West.

Then Tom Marshall suddenly  - and for no apparent reason – cancels his budget consultation in Goose Bay originally set for polling day in Humber West.

No weather excuses.

No real explanations at all.

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Kremlinology 31: The Auditor General’s examination of the offshore board mysteriously vanishes

The year:  2008.

The case:  Auditor General John Noseworthy suddenly took it in his head that the offshore regulatory board fell within his jurisdiction.

Boom.

Right out of the blue without any warning.

And it was odd too, because despite mounds of evidence that the board wasn’t subject to the provincial auditor general and that Noseworthy’s office didn’t think it had the legal right to audit the board (it has only recently been added to the list of entities subject to audit), Noseworthy threw a major-league tantrum. 

In the end, Noseworthy quietly started to review the board in 2009.

In early 2011 – three full years after the racket started – Noseworthy still hasn’t issued a report on the board nor has he indicated when - if ever -  it might appear.

How very odd.

2008?

2008.

Something about that year stands out.

What could it be?

Oh yes. 

That was the year of Danny Williams’ jihad against Stephen Harper if memory serves.

Hmmm.

Maybe it was just a coincidence.

Wonder where John’s report is?

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Dunderdale admin awards lucrative government legal work without tender

Danny Williams’ former law firm got potentially lucrative provincial government legal work without competing in any way. 

The information is in Telegram editor Russell Wangersky’s weekend column. The Telegram didn’t turn it into a news story.

Last week, the Dunderdale administration announced that Roebothan, Mackay and Marshall would head up a law suit against the tobacco industry.

According to Wangersky, there was “no tender call, request for proposals or other competition. As for whether other law firms were considered or offered a chance to bid on the work, the Justice Department replied:

The province felt Roebothan McKay Marshall was the local law firm that best met the requirements for this work. As well, a number of local firms are conflicted as they represent the tobacco industry.”

The Dunderdale administration also refused to disclose the financial aspects of the deal.  The provincial government has new contractual arrangements with both Roebothan, Mackay and Marshall and an American firm retained in 2001 to handle the litigation.

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Twitter or Huckster? Political uses of social media

Front page of the Telegram with a glorious picture. 

Way better advertising than he could ever buy with cash and Steve Kent nailed it.

Of course, Steve Kent is one thing above anything else:  a marketer.  He knows how to sell you something and the commodity he sells best his himself.  You can tell Steve Kent is good at it because he has done very well for himself in a relatively short period of time.

You can also tell because he uses the textbook lines to describe his interest in social media:

Twitter is really about having a dialogue. It’s about engaging people in conversation and it’s not just another approach to communicating messages in the traditional sense

The front page Telegram story would have you believe that Kent is a keen political trendsetter using social media like Twitter in order to “have ‘more human’ interactions with his constituents.”

Here is an example of those “more human” interactions, the dialogue, the conversations:

-  The Provincial Government is investing $2 million so schools across Newfoundland and Labrador can receive 1,450...

-  Storm has started, but dinner theatre is a go at Reid Centre for @mount_pearl Frosty Festival!

There’s some stuff about a pothole and a flat tire, lots of repeating of other people’s messages – called re-tweeting – and a few sports scores. Not very deep or detailed and all pretty pedestrian stuff.  If this is “more human”, then you’d hate to see the other “interactions.”

Still, good on Kent for going with this sort of thing.  He’s not alone;  he might be the only provincial politician to embrace twitter professionally but there are plenty of others out there.  Most locally tend to use Twitter this way:  very sterile and pretty much for putting on the official face.

Not all of them are like that, though.  Take Tony Clement, the federal cabinet minister.  this guy is on Twitter and he and his personality are right there.

And these guys are distinctly different from other high-profile people who are using Twitter.  News media types are especially notable for just putting themselves and their distinctive personalities out there for people to take or leave as they see fit. They don’t just tweet news or mundane lines teasing up a story on the conventional media for television or radio. Sports, movies, personal comments, jokes are all as much part of the twitter mix as something about what stories they are working on. Two that come easily to mind are Kady O’Malley from CBC Ottawa and David Cochrane, CBC’s provincial affairs reporter in  from Newfoundland and Labrador.

The contrast between the pols and the media is night and day.  One is carefully packaged and guarded, by and large, while the other is more natural.  Guess which one better reflects the online, social media world? 

Yeah.

It’s the news media types.  They have no less at risk than the pols but the ones who are using successfully have come to understand that a key part of their overall success is rooted in them being anything but a coif and a voice. Their personality and their personability has become part of the overall package that draws loyal followers. They aren’t “more human”, they are just human.

Authenticity, it seems, is like sincerity. If you can fake that, you’ve got it made in politics. Odd thing is, most politicians real don’t need to fake either.  Why some do remains a mystery.

Incidentally, it’s interesting to see how Twitter turns up in some election campaigns. In Humber West, Liberal Mark Watton has been using his Twitter feed to push out campaign-related information.  He’s tweeted at least once a day.  Conservative Vaughn Granter tweeted on Sunday but hadn’t done anything with Twitter since Tuesday of last week. The NDP candidate – Rosie Meyers – doesn’t appear to have a Twitter feed.

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Canada’s SAR system: an insider view

Ottawa Citizen defence columnist David Pugliese posted this comment from a former Coast Guard employee on search and rescue.  Interesting to see the quote from the Ocean Ranger inquiry report.

Some people like to quote selectively from it to suit their purposes.  The helicopter basing discussion  - the St. John’s base recommendation from the report was supposedly not implemented - is a classic example of an issue that was essentially invented by someone based entirely on a misrepresentation (deliberate or otherwise) of that report.

Pugliese’s correspondent offers a useful and possibly provocative perspective.

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Traffic that needs no loan guarantee

1. Cheryl Gallant sinks
2. Here’s hoping… (political campaigning in Humber West)
3. The road not taken (public debt, Conservative fiscal mismanagement)
4. If only… (Search and Rescue)
5. Humber West:  Mark Watton on CBC Morning Show
6. Will the fake Premier Dunderdale please stand up?
7. A rose by any other name would still stink to high heavens (patronage politics)
8. Abuse and power
9. Taking the voters for grantered
10. The Force

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If only…

One of the most tragic and despicable beliefs to come out of the Cougar 491 crash in 2009 is that the outcome might have been different except for search and rescue service in Canada.

These days, politicians and others are latching onto is something they call “response time”.  Now we’ll get back to that term in a minute but let us establish right from the outset that the most recent version of the search and rescue belief, whether from a grieving family member or a politician, is rooted firmly in the claim that search and rescue helicopters made the difference or could have made or will in the future make all the difference,  “if only…”.

That basic idea has been there from the beginning:  if only a helicopter from the Canadian Forces had been in St. John’s then more people might have been saved that day. If only the squadron -  or a helicopter – had been in St. John’s, then more might have been saved.  If only search and rescue didn’t have two different response times, then things would have been different.

The Transportation Safety Board report issued Wednesday is the most thorough and technically proficient examination of the crash to date. It identifies 16 factors that contributed to the disaster.  Altering any one of them may have saved lives.

Not one of the factors identified was search and rescue “response” time or anything else related to search and rescue helicopters.

There’s a reason for that.

There is not now nor has there ever been a single shred of evidence that anything – absolutely anything -  related to search and rescue response would have made the slightest bit of difference in this case or one comparable to it.

This brings us back to the idea of response time.  People are using that term to mean the time it takes a helicopter crew to receive an order to go, to board the aircraft, warm up, do pre-flight checks and then launch the aircraft from the airport where it is. 

That’s really “launch time”.  Right now 103 Squadron in Gander launches within 30 minutes during daytime working hours and up to 120 minutes at other times.  In practice, the launch time is much lower during “off hours”.

What people with the SAR fixation need to realise is that in order to deliver a response time of 30 minutes (as they are demanding), Canada would have to spend every penny of public money and even then there’d be no guarantee it could deliver that response time in all cases at all times.

You see, response time is really about the distance from the helicopter or ship to the incident. 

Take a look at any map of Canada and the surrounding ocean and you’ll get an idea of the magnitude of that demand and why it is ludicrous. Just think how many ships, helicopters and crews would it take to have someone ready at any given location with 30 minutes of a crash, all day long, all year long.

That’s what a 30 minute response time means.

And if you want to talk about 30 minute launch time you can understand that the Canadian Forces currently hits that time to launch helicopters more often than not.  Even after normal working hours, the sorts of launch times are not – apparently – trending toward that extreme time of 120 minutes.

Families whose loved ones died in a tragedy can be understood for their beliefs and their actions both as a natural part of grief and out of a human desire to ensure no one else feels the sort of soul-wrenching pain they have endured. Theirs is tragic belief in ever sense of the word tragedy

But for others, for the politicians and journalists, the ones who, even inadvertently, feed the belief in falsehood despite all the evidence, it isn’t so easy to find any generosity for them.

And the men and women who provide search and rescue service across Canada when the rest of us are fat and happy in our cozy beds?

They can only look in amazement at the ignorant critics, shake their heads and mutter how much better off we’d all be “if only…” as they head back to do their duty.

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Cheryl Gallant sinks

Youtube is a deadly instrument.

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Kremlinology 30: The Vanishing ‘Stache

Jerome’s shaved off his moustache.

Again.

Last time the province’s health minister went out in public sans ‘stache, he came up with some explanation for it and grew the thing back.

After your humble e-scribbler pointed it out and someone asked him about it, of course.

So what happened this time?

 

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TSB issues S-92 crash report, recommends major changes to civil helo safety regime

A complex series of events involving 16 significant factors contributed to the crash of Cougar Helicopters Flight 491 in early 2009 and the loss of 17 souls according to the Transportation Safety Board released Wednesday after a two year investigation.

The complete report is available here:  S-92 investigation report.  It is comprehensive and covers all relevant factors from crew backgrounds to key operating systems to passenger injuries and safety equipment.

The TSB investigation made four recommendations:

• The Federal Aviation Administration, Transport Canada and the European Aviation Safety Agency remove the "extremely remote" provision from the rule requiring 30 minutes of safe operation following the loss of main gearbox lubricant for all newly constructed Category A transport helicopters and, after a phase-in period, for all existing ones.
• The Federal Aviation Administration assess the adequacy of the 30 minute main gearbox run dry requirement for Category A transport helicopters.
• Transport Canada prohibit commercial operation of Category A transport helicopters over water when the sea state will not permit safe ditching and successful evacuation.
• Transport Canada require that supplemental underwater breathing apparatus be mandatory for all occupants of helicopters involved in overwater flights who are required to wear a Passenger Transportation Suit System.

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Humber West: Mark Watton on CBC Morning Show

The audio is now available online. [mp3]

CBC set this up correctly:  in-studio interviews so that none of the candidates can hear the others’ interviews and then airing them by random draw.  Watton wound up on first.

Mark got the chance to highlight his considerable experience dealing with issues that are important to Newfoundland and Labrador and talk up his connection to the district. 

Then he turned to dealing with issues he’s getting on the doorstep:  housing, concern about pensions and retirement.  The housing one is particularly striking since, as Mark points out, the city is experiencing a housing shortage despite growth. 

Mark nails a number of hard critiques of the current administration  - if housing is so important for the Conservatives it is odd they’ve never raised it in the legislature  - and then and delivers his ballot question cleanly:  do you want a member who speaks for the government or one who speaks for you?

No one can say that voters don’t have a clear choice in Humber West.

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Who’s the Boss, again?

Now it can be stuck in someone’s head like Level 42 has been haunting your humble e-scribbler for a week now.

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Will the fake Premier Dunderdale please stand up?

Seriously, gang…

Is it more disturbing that someone started an obviously fake Twitter account for Kathy Dunderdale in the general style of a dozen humourous fake accounts, including one during her predecessor’s term of office?

Or that she was so shit-baked people couldn’t tell the difference between the real Kathy and the fake Kathy that she sent out a media advisory proclaiming she doesn’t have a Twitter account?

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Imagine if they were fiscally responsible

Feast your eyes on labradore’s latest offering about public debt in Newfoundland and Labrador.

The only people left who think the current administration (since 2003) acted and are acting in a fiscally responsible manner are those who just refuse to see the obvious.

Labradore offers this projection of the provincial net debt if a quarter of oil revenues had gone to actually paying off debt over the past few years.  The light coloured bits are what would have disappeared.  The dark green are what would have remained. The two together are what the Conservatives actual record looks like from basically doing nothing except paying off what came due.

Never Read Stuff Late at Night Update and Correction:  The charts are based on the assumption of taking 25% of the windfall oil revenues for spending and 75% for debt reduction. That's what happens sometimes when you read things late at night.

It actually doesn't change the overall thrust of this post or labradore's original, though since the charts illustrate what an aggressive debt reduction approach could have achieved while at the same time fueling significant increases in public spending.

Consider this to be the complete opposite of the Williams and Marshall approach in which they basically did shag all to reduce the province's debt burden to any meaningful degree.

*original continues*



And the share of the public debt borne by each man, woman and child in the province?

In the cleverly colour-coded chart you can see the blue line – what the Tories did – and the red line representing what might have been, had the current administration done as labradore and a few other brave souls recommended.



Odds are pretty good that a government with the fiscal track record shown in this chart could actually raise the cash on its own to build a viable Lower Churchill project.  On its own, that is, which would be in contrast to going cap in hand to Uncle Ottawa looking for a gigantic multi-billion dollar handout. Like say both Danny Williams and his hand-picked successor have been doing.

There’s a provincial government that is genuine in its aspirations and one that can be legitimately proud of the efforts it has made to ensure Newfoundlanders and Labradorians live in a province that is strong and fiscally sound.

And then there are the people who talk about legitimate aspirations but who fail repeatedly to embody them, let alone achieve them.

Just for good measure, let’s give labradore the final words on this.  They are all too accurate:

There was, of course, nothing responsible or prudent about Danny Williams’ tenure as Premier, and nothing, other than name, that was conservative about it. He chose a different track. 

That is why a government that collected over $9-billion in oil revenues during its tenure still presides over a $9-billion net provincial debt. 

And that is why the provincial net debt per capita this fiscal year was over $17,000 and rising, when in the alternative universe it would have been $7,000 and falling, and falling fast.

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Abuse and power

Last fall when the provincial government debated a resolution to appoint the current child advocate, the minister then responsible for the department of child, youth and family services - Joan Burke  - reminded everyone that the advocate’s position came from a recommendation by some very thoughtful members of the House of Assembly.

They comprised a Select Committee on Children’s Interests created by the House of Assembly in 1994.  Their report, issued in 1996 after two years of study and consultation recommended a number of actions designed to change fundamentally the way the provincial government approached children's’ issues

Those thoughtful members, interestingly enough, specifically rejected the very idea Burke embodied as minister, namely the creation of a separate department to deal with children, youth and family issues within government. They were concerned that such an approach was unnecessarily costly, may serve to marginalize family issues with government and would not encourage the fundamental change in attitudes to children and family issues they felt families and children in the province needed:

It seems contrary to Committee members, therefore, to isolate the needs of children and youth into a single ministry. It is the fear of the Committee that issues affecting children and youth would be "marginalized" into a junior ministry. The goal of government, however, should be to educate and involve all departments and levels of government in designing and implementing appropriate social programs and policy.

The purpose of the child advocate was to speak for the interests of specific children and children generally.  The select committee recommended and Roger Grimes’ administration established the position as an officer of the House of Assembly, separate from the government. In that way, the advocate’s office was supposed to speak for children and families to those with power.

This is a crucial point.  It’s hard to imagine anyone in our society with less power than children. Families are often not much better off, especially when dealing with government.  Just as children are the least powerful of our society, it is equally hard to imagine anyone more powerful than the provincial government armed with all the legal means to accomplish whatever purposes it wants.  The advocate was supposed to provide some balance, largely by making much louder the weakened voice of the child.

All that background is what makes the child advocate’s intervention in most recent story of child protection in the province troubling in the extreme.

Carol Chafe is responding, in largest part, to a complaint brought by a minister of the Crown against the news media and the parents of two children taken into custody by officials of the minister’s department. The parents complained to the news media and the news media dutifully reported the story.

The minister, for her own reasons, decided to try and use the child advocate’s office to a purpose for which it was clearly never intended:  namely as an agent acting on behalf of the most powerful authority in the province. 

Note that Chafe did not make any public comment – as she should have – when the story first broke.  Neither she nor any of her officials appear to have made any efforts to intervene in the case, to deal with the media or the family.

Not until now, that is. 

After Charlene Johnson lodged her complaint.

In a very poorly written statement, Chafe acknowledges that people have a right to know certain things and that the media ought to report.  Then comes the “but” and it is a big one:

However, when children are the central part of the story their right to confidentiality, privacy and safety must trump all other interests.

Asked by CBC’s Ted Blades in an interview on Tuesday to balance the need to discuss a significant issue with the trump card, Chafe couldn’t do it. That isn’t really surprising.  This story carried on for a week.  if Chafe genuinely understood her role and was convinced that the children’s interests “trumped all other interests” she’d have been on this before Charlene Johnson called her in.

Chafe didn’t need anyone’s approval to get in on the case. She has a wide scope of action under the act that governs her office.

Well, the correct phrase is actually had a wide range of powers.

Under changes made to the child advocate’s act in 2008, an entirely new clause (15.2) inserted in 2008 gives a cabinet minister the right to order the advocate to cease an investigation based on the very vague claim that an investigation is not in the public interest. There is no requirement for proof nor does the advocate have any right to appeal the decision to a third party. One letter from the minister and the investigation stops.

Period.

On the face of it, what the people of Newfoundland and Labrador are seeing here is yet another example of how the current administration has steadily reduced, muzzled or eliminated any means by which someone may question its decisions.  The process, as Carol Chafe likes to talk about, has been one of erosion. 

Piece by piece.

Slowly.

Almost imperceptibly.

But once they emerge into the light, as with Carol Chafe’s intervention a handful of months into her new job, there can be no mistake about the result.

Power, once appropriately constrained, has its hands free.

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Here’s to hoping…

That all those cabinet ministers and political staffers working hard to take Humber West for Grantered and the Conservatives are not campaigning on the public dime. 

Annual leave or leave without pay.

But campaigning on the public payroll?

Not on.

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Rio Tinto capex of US$277 million for Phase 2 expansion at Labrador mine

From a Rio Tinto news release issued Tuesday:

“Rio Tinto has given the go-ahead to a further US$277 million investment (Rio Tinto share US$163 million) in the next phase of a project that will ultimately raise the Iron Ore Company of Canada’s (IOC) concentrate production capacity by 40 per cent to 26 million tonnes per year (Mt/a).  

This is the second phase of a three stage expansion that was announced in May 2010 with a US$400 million investment (Rio Tinto share US$235 million) to raise production capacity from 18 Mt/a to 22 Mt/a. 

Phase two of the project will increase IOC’s spiral and magnetite concentrate production capacity by an average of 1.3 Mt/a to 23.3 Mt/a from 2013.

Recent studies have highlighted an opportunity to improve time to market through
bringing forward some capital items from the third stage, resulting in higher level of
production earlier. The third stage of the planned expansion to 26 Mt/a is currently under study and a final investment decision is expected by 2012. 

Rio Tinto chief executive, Iron ore and Australia, Sam Walsh said the project was an
important development in increasing IOC’s production at a time when global demand is escalating.

“Global seaborne iron ore demand is projected to increase substantially over the next decade, and IOC’s concentrate is well placed to complement the increasing use of lower quality ore to meet that demand,” he said.

“With high iron content and very low levels of impurities, IOC’s concentrate provides
significant value to steel producers as ore grades from direct shipping mines continue to decline.” 

The project’s construction is set to start immediately to capitalise on the brief Labrador summer construction season and will be fully commissioned by the end of 2012.”

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