Canada-based Long Harbour Development (LHDC) has secured funds from the Government of Newfoundland and Labrador to start the construction of a hydromet industrial supply park at Long Harbour - Mount Arlington Heights.
The industrial park is part of the government's $100m first phase of Ontario Place revitalisation project, which also includes the development of a waterfront trail.
For the hydromet industrial supply park project, the government has contributed $818,419 through Atlantic Canada Opportunities Agency's (ACOA) Innovative Communities Fund.
The government also contributed $52,612 towards a small town readiness project through ACOA's business development programme.
Located next to the Vale's Hydromet facility, the industrial park will include 7.5ha of land divided into nine commercial semi-serviced sites for attracting commercial tenants supplying goods and services to Vale's processing facility.
Canada senator Norman Doyle said: "The hydromet industrial supply park will provide the industrial capacity needed to facilitate the growth and development of the mining industry in Long Harbour - Mount Arlington Heights, while the small towns' readiness project will encourage economic development throughout the region."
LHDC chairman and Long Harbour - Mount Arlington Heights mayor Gary Keating said: "Today's announcement of $1.63m in federal and provincial funding, in partnership with the Long Harbour Development Corporation, will significantly enhance the ability our community to maximise the full economic development potential that is represented in being the host community for the multi-billion dollar Vale Hydromet processing plant."
Canada tourism, culture and sport minister Michael Coteau was quoted by The Star as saying that construction is expected to begin soon on the first phase of the project; the new urban park and waterfront trail scheduled to open in 2016.