Thursday, July 31st33.9°C
21450
22156

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

21269


Recent Trending




Today's Market
S&P TSX15330.74-194.08
S&P CDNX1001.52-9.58
DJIA16563.30-317.06
Nasdaq4369.773-93.129
S&P 5001930.67-39.40
CDN Dollar0.9168-0.0001
Gold1310.00+6.70
Oil97.73-0.44
Lumber325.90+1.50
Natural Gas3.73-0.017

 
Okanagan Companies
Pacific Safety0.18-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.21-0.01
Cantex0.085+0.02
Anavex Life Sciences0.262+0.002
Metalex Ventures0.08-0.005
Russel Metals35.23+0.01
Copper Mountain Mining2.75-0.08
Colorado Resources0.205-0.015
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.03-0.005
Mission Ready Services0.150.00

 





FEATURED Property
19412081205-1128 Sunset Drive
1 bedrooms 1 baths
$419,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Take charge of your debt

Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...


Geopolitical tensions rattle markets

The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...

_








Member of BC Press Council


22581