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Natural Resources March 11, 2008 $500 Million Expansion Shows Province Successfully Competing in Global Mining Industry The announcement today of a $500-million investment by the Iron Ore Company of Canada into its Labrador City operation is another sign of the province�s mining industry strength, said the Honourable Kathy Dunderdale, Minister of Natural Resources. "This major investment will generate 250 construction jobs at peak construction over the next three years and 200 full-time mining jobs once the expansion goes into operation," said Minister Dunderdale. "The confidence this company is showing in the province and especially in Labrador West, proves we have the resources, people and business climate to compete and win in this global industry." The Iron Ore Company of Canada and majority owner Rio Tinto made the announcement this afternoon. The company says the expansion will increase annual iron ore concentrate production at the mine to 22 million tonnes per year. The company reported production of 17 million tonnes of concentrate and 12.7 million tones of pellets in 2006. The company described the expansion as phase one of a larger plan that could see production grow to 25 million tonnes of concentrate by 2011. The phase one expansion plan includes a new crusher, new equipment, a new grinding mill and a new six-kilometre overland conveyor to link the crusher to the concentrator. "We understand how important the mining industry is to our rural areas, which is why this government is so committed to this industry," said Jim Baker, MHA for Labrador West. "IOC is once again demonstrating its commitment to the people of Labrador West and the province." The province�s mining sector is booming thanks to a thriving commodities market, excellent mineral resources, and strategic Provincial Government investments. Companies exploring for minerals in the province set a record for exploration expenditures of $138 million in 2007. Mineral shipments also reached a record level of $3.9 billion last year due mainly to nickel and iron-ore shipments. That�s 470 per cent higher than just four years ago. The sector employs approximately 3,800 people in high-paying jobs throughout the province. IOC employs approximately 1,500 people at its Labrador City mine. -30- Media contact: Corey Snook 2008 03 11 3:25 p.m. |
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