Wabush Scully Mine in Labrador closing, 500 jobs affected at iron ore operation
WABUSH, N.L. - The Wabush Scully Mine in Labrador will be idled by the end of March by Cliffs Natural Resources Inc. with the company blaming dropping prices and the increased cost of running the operation for its decision.
Stopping production will affect 500 workers at the iron ore mine near Wabush and at the company's Pointe Noire rail and port operation in Quebec.
Company president Gary Halverson said Tuesday it has seen prices drop over the past three years while the cost of running the mine in western Labrador has escalated.
Halverson said the company has made "significant" capital investments in the mine.
"This is a regrettable but necessary decision," he said in a news release. "We simply cannot continue operating a high-cost mine while pricing and freight markets are so volatile."
The company's website says the Scully mine and concentrator have been in operation since 1965.
Premier Tom Marshall of Newfoundland and Labrador said he is disappointed by the company's decision and will travel to Wabush this week to discuss the mine's closing.
The town of Wabush's website says the open-pit operation is the third largest iron ore mine in Canada. A company fact sheet dated January 2013 says the Scully mine employed 487 workers.
The company says it expects to spend about $100 million this year to idle the mine before the end of the first quarter.
Read more Business News
- Bobbitt hearing adjournedPenticton / S. Okanagan - 7:08 pm
- Development builds protestKelowna - 4:52 pm
- Election foul: Signs removedMunicipal Elections 2014 - 4:36 pm
- KGH ready for EbolaKelowna - 1:27 pm
|QHR Technologies Inc||1.17||+0.05|
|Anavex Life Sciences||0.192||+0.001|
|Copper Mountain Mining||2.17||+0.18|
|Sunrise Resources Ltd||0.06||0.00|
|Mission Ready Services||0.46||+0.01|
This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...
Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...
The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...