06/07/2012 03:27 EDT | Updated 08/07/2012 05:12 EDT

Nova Scotia taxpayers won't pay for any cost overruns on ship salvage: premier

HALIFAX - Premier Darrell Dexter says Nova Scotia taxpayers won't be on the hook for any potential cost overruns in the removal of a derelict ship stranded off the east coast of Cape Breton.

Last month, the government said New York-based salvage company Bennington Group would dismantle the wreck of the MV Miner, which ran aground on Scatarie Island while being towed for scrapping in Turkey last September.

At the time, a government spokesman said the company expected to recover the $1-million cost of removing the wreck through the sale of scrap metal.

Dexter says the salvage operation is privately run and the province isn't obligated to contribute financially.

The company plans to dismantle the large bulk carrier in sections and then take them by barge to nearby Port Hawkesbury, N.S., over the summer.

The pieces will then be shipped by rail to buyers in Canada and the United States.