LABRADOR CITY, N.L. — The Iron Ore Company (IOC) of Canada says its Wabush 3 mine project in Labrador West is going ahead, with a planned investment of $79 million.
It says the new pit to be developed as part of IOC's ongoing operations will extend the life of the existing mine while delivering "significant" benefits to the region. Labrador West has been hit hard in recent years as iron ore prices dropped, with layoffs at IOC and the shutdown of Wabush Mines.
The Wabush 3 project has cleared regulatory and environmental hurdles but was delayed in 2015 due to low prices. IOC now says construction of the new pit is expected to start in the second quarter of this year.
First ore from production mining is expected in the second half of 2018, to help drive IOC's annual capacity to 23 million tonnes from 18 million tonnes.
The company says Wabush 3 gives it the best access to low-cost, quality ore to help it compete as prices remain volatile.