Whites Point quarry expansion wins NAFTA ruling

A U.S. company that proposed expanding a quarry insouthwestern Nova Scotia says it is seeking at least US$300 millionin damages from Canada after winning a NAFTA ruling.

Bilcon proposed the expansion at the Whites Point quarry in Digby Neck in September 2002 but the Nova Scotia andfederal governmentsrejected it after a federal-provincial joint review panel recommended it not proceed.

The company filed a NAFTA challenge under Chapter 11, allegingthere were gross irregularities in the federal-provincial process.

A NAFTA tribunal concluded that the joint review panel consideredfactors outside Canada's environmental legislation that were notdisclosed to Bilcon during the review process.

The tribunal's March 17 ruling says it was unjust for officialsto encourage the expansion of the quarry and later determine thatthe area was a "no go" zone for such a development.

The quarry was opened in the 1940s and the gravel it containedwas used to build local highways.

Bilcon will seek damages during a NAFTA hearing expected to takeplace next year.