The Newfoundland and Labrador provincial government has reached a benefits agreement with Alderon Iron Ore Corp. to develop a new iron ore mine planned for western Labrador.

Workers from Labrador will be given hiring preference for the Kami project, with people from the island portion of the province given second preference.

Alderon has also agreed to hire more apprentices in skilled trades to work on the development of the project.

The company is expected to employ approximately 800 people during construction of the mine, and 400 when it's in operation.

Alderon CEO Tayfun Eldem said construction will begin this summer based on securing full funding.

An additional $1.5 billion needs to be raised by the company to begin construction.

Eldem said there will also be equal opportunity employment at the site.

"Initiatives include training and education, a recruitment and selection process that emphasizes fairness, equity and equal opportunity, steps to encourage employee retention and targets for women's employment," he said.

Minister of Natural Resources Derrick Dalley said there will also be a 40-space employee childcare provided at the site.