St. John's, Newfoundland and Labrador, March 30, 2004 - Abitibi-Consolidated Inc., the operator of a paper mill in Grand Falls Windsor, (Newfoundland and Labrador) has pleaded guilty to Government of Canada environmental charges.

A provincial court judge has ordered the Company to pay a fine of $10,000 and to contribute $100,000 to the Government of Canada's Environmental Damages Fund.

As well, the Judge ordered the Company to arrange and pay for all work needed to ensure that the paper mill meets the requirements of the Fisheries Act. It is estimated that required upgrades could cost as much as $7 million. A compliance order details the work that must be done, lays out a strict timetable for the work, and calls for penalties if deadlines are not met. All the mill upgrades are to be complete by the end of November 2004.

The judge's decision is the result of a joint prosecution-defence submission. The Company had originally faced six charges; three were dropped. Two of the remaining charges relate to violations under general prohibitions of the Fisheries Act. The other charge resulted from breaches of the Pulp and Paper Effluent Regulations under the Fisheries Act. The Regulations outline effluent standards for pulp and paper mills.

The money awarded to the Environmental Damages Fund because of this successful prosecution will be used to fund environmental projects related to the Exploits River. Local community or environmental groups will have the opportunity to make project proposals for the funds. The Environmental Damages Fund ensures polluters take responsibility for their actions, and gives courts a way to guarantee that money from pollution fines and settlements is directly invested to repair the actual harm done by the pollution.

The charges are the result of an investigation by Environment Canada's Office of Enforcement. Environment Canada's Enforcement staff investigates potential pollution offences under the Canadian Environmental Protection Act, 1999 (CEPA 1999) and the federal Fisheries Act. They help ensure that companies, government employees, and the general public comply with legislation and regulations that protect Atlantic Canada's environment.

For more information on Environment Canada's Atlantic Region programs please visit the Green Lane at: http://www.atl.ec.gc.ca/index_e.html.

For more information, please contact:
Neil Codner
Investigator
Environment Canada
(709) 772-2065