The fire that destroyed an apartment building in Labrador City could affect the Iron Ore Company of Canada's ability to recruit new workers.

All 108 units in the complex were reserved for new hires at the mine, but a fire that started early Sunday morning completely levelled the building.

Company spokesperson, Heather Bruce-Veitch says it's a big loss. "It was to open at the end of November. We were quite excited. Beautiful building, great location and certainly the news was devastating."

IOC is still looking to hire 200 new employees, but Bruce-Veitch says it will be difficult to find housing for them in the booming town. "How do we possibly accommodate this change which dramatically impacts our ability to recruit for 2012 and certainly into 2013."

The cause of the fire is under police investigation.