Thursday, April 17th6.3°C
21427
20944

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

21097


Recent Trending




Today's Market
S&P TSX14446.52+142.60
S&P CDNX997.975.87
DJIA16424.85162.29
Nasdaq4086.225+52.064
S&P 5001862.31+19.33
CDN Dollar0.9079+0.0002
Gold1303.00-0.10
Oil103.79+0.03
Lumber327.80-1.00
Natural Gas4.56+0.03

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.22-0.05
Cantex0.045-0.005
Anavex Life Sciences0.375-0.005
Metalex Ventures0.0750.00
Russel Metals30.55+0.28
Copper Mountain Mining2.42+0.10
Colorado Resources0.2650.00
ReliaBrand Inc0.12-0.01
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.23-0.02

 
19691


20151

FEATURED Property
19218883715 Glover Avenue
10078835 bedrooms
$169,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...


Valuation fears grip markets

The Big Picture Valuation fears grip markets Growing concerns about the level of stock market valuations sparked a risk-off trade in global markets this week. Investors are worried that many companies...


Quick and nimble

Photo: ContributedFor many businesses this has been a tremendously difficult time since the 2008 crisis. Business fell off. Sales techniques that always worked, well… stopped working. Customers...

_



21641

21641


Member of BC Press Council


21202