Wabush 3 mine put on hold, IOC tells employees - Action News
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Wabush 3 mine put on hold, IOC tells employees

Company president Kelly Sanders wrote in an all-staff memo that the development of the companys planned Wabush 3 open-pit mine has been deferred as a full review of IOC performance is conducted.
This is an aerial perspective of the Iron Ore Company of Canada operations in Labrador West, including the proposed Wabush 3 open pit mine. (Iron Ore Company of Canada)

The $250-millionWabush 3 mining project in westernLabrador has been put on hold due to poor performance at the Iron Ore Company of Canada, the president of the company told workers on Monday.

Company president Kelly Sanders wrote in an all-staff memo that the development of the open-pit mine has been deferred as a "full review of IOC performance is conducted."

"This difficult decision was based on a number of factors including lower cash generation, shortfall in production, and failure to ship the quantity and quality of product to customers as scheduled," he said.

The proposed mine is seen as an important economic generator for Labrador West. It was sanctioned by the provincial government just last September, but delayedby IOC in December.

The construction of the open-pit mine was expected to create 2,400 "person-months" of employment.

Monday's letter comes with direct criticism of mine employees, just as the mine's union was turning up the heat in an on-going labour battle.

"The result of skipped shifts left trucks idle and production well below demonstrated capabilities," Sanders wrote. "These issues...are simple to overcome by a highlycapable team."

Sanders wrote that the company is still reviewing its strategy.

Previously, the company described Wabush 3 as "critical" to the ongoing viability of IOC.