Minister meets with Iron Ore Company of Canada officials

Mines and Energy Minister Lloyd Matthews met with officials from the Iron Ore Company of Canada (IOC) last evening to discuss the recent layoffs announced by the company at its iron ore operations in Labrador West.

The IOC officials were in St. John�s to provide government with an update on their iron ore operations in Labrador West, and the reasoning behind the planned layoffs announced last month.

"After meeting with the company, government has a clearer picture of the economic circumstance that is facing IOC," said the minister. "The company provided a presentation to government regarding the downturn in the steel industry during the past few years, and its effects on iron ore operations in Labrador West."

The minister noted that the company believes that it needs to reduce costs to secure the long-term viability of its operations in Labrador West and, in turn, their long-term commitment to people of the region.

"Although government cannot interfere with the running of a private company, we have impressed upon IOC our concern for the employees that will be affected by these layoffs and the general impact that these layoffs will have upon the communities in the region. We have asked that any cutbacks be minimized to the greatest extent possible."

Media contact: Darrell Mercer, Communications, (709) 729-5777.

2002 10 01                                      4:40 p.m.