Saturday, October 10th11.7°C

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.

The Canadian Press

Read more Business News

Recent Trending

Today's Market
S&P TSX13964.36-14.30
S&P CDNX552.26+5.20
S&P 5002014.89+1.46
CDN Dollar0.7723-0.0001
Natural Gas2.52+0.02

Okanagan Companies
Pacific Safety0.225-0.005
QHR Technologies Inc1.25+0.02
Metalex Ventures0.07+0.02
Russel Metals21.26-0.29
Copper Mountain Mining0.66+0.05
Colorado Resources0.07+0.00
ReliaBrand Inc0.0175+0.0009
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.075-0.005
Decisive Dividend Corp3.25+0.14
Diamcor Mining0.97+0.03



2444428Silver Star 3 bedroom / 2 bathroom
more details
Click here to feature your property
Please wait... loading

Income for life?

Photo: Thinkstock.comIn almost every conversation I have with clients these days, the topic swings to interest rates. What direction they’re going, how long will they stay where they are and how...

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...




Member of BC Press Council