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Natural Resources
May 7, 2010
Resumption of Mining
Project Provides Boost for Western Labrador
Yesterday's announcement by
the Iron Ore Company of Canada (IOC) to restart a $539-million Phase One
iron ore expansion project in Labrador West is welcome news for the
Provincial Government.
"We are witnessing significant economic recovery in the Newfoundland and
Labrador mining industry, and we are delighted with IOC's and its
shareholders' decision to restart its iron ore expansion project," said
the Honourable Kathy Dunderdale, Minister of Natural Resources. "This
project will prove to be very timely considering the increased global
demand for high-quality iron ore projects and will help to ensure our
province's position in meeting this need on a global scale."
IOC is the largest manufacturer of iron ore pellets in Canada and its
customer base includes North America, European and Asian steel
producers. The expansion program will allow IOC to increase its annual
concentrate capacity by four million tonnes to 22 million by 2012, and
is the first stage of a possible three-stage expansion program that
could increase concentrate annual capacity to 26 million tonnes. The
Phase One construction of the program will provide employment for
approximately 250 positions, with 100 additional positions being created
once the Phase One expansion program is fully implemented.
"The resumption of this project will mean tremendous economic and
employment benefits for the people of Labrador West," said the minister.
"It will help contribute to the continued recovery of mining operations
in Labrador and help to ensure the future growth and development of this
region."
Initially approved in March 2008, the iron ore project was later
suspended as a result of the global financial crisis and a weakening
demand for iron ore. With steady market improvements, the province is
seeing a rise in demand, most significantly from China.
The announcement by IOC adds to the good news that the mining industry
has been providing in Labrador West. Wabush Mines is increasing its
production and is investing in new manganese reduction technology. New
direct-shipping iron ore projects by Labrador Iron Mines and New
Millennium Capital Corporation are also on the horizon.
The Provincial Government through Budget 2010: The Right Investments -
For Our Children and Our Future is making an investment of $2.5 million
for a program to assess the Crown-owned Julienne Lake iron ore deposit.
This will help contribute to an improved understanding of this
potentially significant deposit and its market value to the province.
Newfoundland and Labrador's mining industry is a major contributor to
the provincial economy. It provides meaningful employment for over 4,000
men and women, particularly in rural communities.
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Media contact:
Tina Williams
Communications Specialist
Department of Natural Resources
709-729-5777, 728-2837
TinaWilliams@gov.nl.ca
2010 05 07
4:20 p.m.
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