Labrador's economy must diversify to survive, say opposition parties

Newfoundland and Labrador's opposition parties are weighing in on troubling mining news in western Labrador.

This week, some analysts said the Iron Ore Company of Canadamine is in danger of closing down within a year, citing the high cost of producing iron ore therecompared to other mines owned by the company.

In addition to the distress with IOC, AlderonIron Ore Corpannounced a round of cost-cutting measuresas it struggles to find investors for its much hyped Kami mine.

• It's a double-dose of uncertainty for Labrador's iron ore industry

On Tuesday, Liberal Leader Dwight Ball said the province needs to keep Labrador an attractive place for mining companies to do business.

"We have a skilled experienced workforce," Hesaid."One that's there looking and ready to go to work."

Ball said in light of the downturn in the mining industry in the region, other growth areassuch as hydroelectricityshould become the focus.

"We must look at the other advantages that we would have available to us, things like power," he said.

"This government talks a lot about the export of power. I want to talk about using that power as a competitive advantage for us."

NDP touts need for diversification, more government involvement

New Democrat MHA Lorraine Michael told CBC News the uncertainty in western Labrador points to the dangers of relying on a handful of private companies for the economic viability of Labrador.

"We can't put our eggs in the basket of corporate decision making," she said.

"The mainstay of Labrador, apart from the fishery, is the mining and energy and that's it."

Michael said the currentsituation shows the need for more government programs to protect workers and the local economy in Labrador.

"Government has to have long term plans that will deal with helping communities and workers when the issues arise," she said.

"We have had governments, both Liberals and Tories, that throughout the decades do nothing but react to crisis."