Labrador’s Iron Ore Industry Rebounding from Global Commodity Depression
Long-awaited Wabush 3 mining project gets green light.
Since the 1960s the Iron Ore Company of Canada (IOC) has been operating the Carol Project in Labrador City, with four open pit mines currently in operation. Wabush 3 is one of two new deposits that IOC has been exploring for future development, and the new pit will be located next to the existing Luce pit.
Globally the iron ore industry took a downturn in recent years, and plans to construct the Wabush 3 extension were paused last May. Now, with the price of iron ore recovering, construction is scheduled to begin soon and mining in the second half of 2018. It is expected that this new pit will extend the life of the Carol Project by another twelve years.
Safeguards for economic uncertainties in place
Having learned from recent hard times, management at IOC have made sure that any downturns in the price of iron ore have been accounted for going forward. The market can change quickly, making safeguards necessary.
Lowering operating costs has become a major priority across the board for the Carol Project, and more specifically, the Wabush 3 extension. In order to endure future economic hardships, operational efficiencies needed to be a focus. Fortunately, the new pit in Labrador West is expected to be easier to mine, meaning that production will inherently be more efficient. Combine that with a strong worker base that are committed to keeping jobs in the area, and you have a project that should be a viable investment opportunity moving forward.