RELEASE

For Release: Immediate
June 27, 2006

Liberal Natural Resources Critic Demands Answers
on Proposed Takeover of Two Canadian Mining Companies

Ottawa - Liberal Natural Resources Critic Roy Cullen today called on Conservative Industry Minister Maxime Bernier to answer several serious questions regarding the proposed takeover of Inco Ltd. and Falconbridge Ltd by Phelps Dodge Corporation.

"Under the Investment Canada Act, the government has a responsibility to ensure that investment in Canada by Canadians and non-Canadians contributes to economic growth and employment opportunities in this country," said Mr. Cullen.

"A fundamental question that the Minister needs to answer is whether the proposed takeover of two of Canada's preeminent mining companies meets this criteria."

The proposed takeover of Inco Ltd. and Falconbridge Ltd. by Phelps Dodge Corporation raises several serious questions:

• How many jobs will be lost and how fairly will affected employees be treated?
• Will the head offices of Inco and Falconbridge be dismantled and how will this create a net benefit for Canada?
• Will ore processing continue to be done in Canada, or will 'value added' activities occur mostly outside of Canada?
• Will Phelps Dodge commit to environmentally sustainable mining practices in Canada?
• Will Phelps Dodge commit to transfer pricing amongst associated companies at fair market value?
• What is Phelps Dodge's commitment to mine safety and occupational health?
• How will the takeover impact on union contracts and the union / management relationship?

"These are some of the many questions this government will need to consider. It is my hope that they will also consider whether this proposal is in Canada's strategic and national interest," said Mr. Cullen.

"The single most crucial question this government must ask itself is this: why it would be in the best interest of Canadians to relinquish control of these very important natural resource companies? Canadians deserve an answer."

The text of the open letter Mr. Cullen sent to the Minister of Industry is available at http://www.roycullen.com/releases/open_letter_phelps_dodge.htm.

For more information, please contact:
David Cuddemi, Executive Assistant
Room 317, West Block
613-995-4702