
I was in Labrador City on October 19th, 1998 when the Mines and Energy Minister of the day arrived to tell municipal and labour leaders that the Government had accepted the findings of Hatch Associates regarding IOC's plans to re-activate an idle pellet plant in Sept Iles, Quebec, rather than expand in Labrador West.
The report showed that it would cost $230 million more to locate the facility in Labrador City than in Sept-Iles. The Minister said it would cost the taxpayers of the province $15-20 million per year - close to $400,000 each for the 50 jobs that would be created.
The Town of Labrador City did not agree with the government position. They commissioned the Barclay Report which painted a different feasibility picture than that put forward by Hatch and questioned why the government hadn't put more pressure on IOC to enhance pellet production in Labrador West.
At the time it seemed contradictory to the government's "not even a spoon-full" policy with regard to export of non-processed nickel from Voisey Bay. Why would IOC be allowed to increase production and export concentrate out of province for secondary processing?
Of course no one struggled with it more than the local MHA for Labrador West, Perry Canning, who joined Furey for the meetings with USWA Local Union 5795 to review the findings. It inevitably cost Perry his job as voters threw him out in the next provincial election.
Iron Ore Co. of Canada has announced a $500-million expansion of its operations in western Labrador to boost annual concentrate production from 17 million tonnes to 22 million tonnes to help satisfy surging global demand. In the first phase of a three-year expansion, the company will acquire new drilling, loading and hauling equipment at its mining site near Labrador City, as well as construct a new crusher station. They will also build a six-kilometre overland conveyor linking the crusher to the concentrator and install an additional grinding mill to help address bottlenecks in production and improve performance.
Last August, IOC announced a $60-million program to increase total concentrate production to 18.4 million tonnes by the middle of this year. At the time, IOC also said it would conduct a feasibility study to boost concentrate production to 22 million tonnes annually.
The expansion comes at a time of soaring demand for iron ore pellets used by global steel makers to produce steel in their blast furnaces. So what about pellet production in Labrador West as IOC plans to increase p
ellet production to 14.5 million tonnes? Will we continue to export iron-ore for secondary processing elsewhere?