High Canadian dollar hurts Labrador company

The Labrador Inuit Development Corp. is scaling back production at its rock quarries south of Nain as the rising value of the Canadian dollar eats into profits.

This month, the dollar broke through the 90-cent US level, its highest rate since 1978.

Managing director Fred Hall says that hike is pounding the company, which mines labradorite and anorthosite for export to tile manufacturers in Italy.

"In 2002, if we sold $2 million worth of rock in U.S. dollars, we would get $3 million converting to Canadian," Hall said.

"Now, we're getting $2.2 million, so it's $800,000 right there. Then, when you couple that with the high price of fuel, fuel is about tripled, so we've really got to tighten things up."

• IN DEPTH: The Canadian Dollar

The company will shorten its season by six weeks and about 25 of its 75 seasonal staff will not be hired back at the Ten Mile Bay quarries in northern Labrador this summer.

Hall is hoping the laid-off workers will find other employment through a job-sharing plan and in mining exploration around Postville on Labrador's north coast.