Labrador Iron Mines unsure of future of James Mine
Another iron ore producer in Labrador is uncertain of its future production prospects, following an announcement that operations at a different site would be idled.
Labrador Iron Mines said on Friday that unless it can find new investors, the company will be forced to delay or suspend operations at its James Mine in 2014.
The statement from John Kearney, company chairman, came two days after Cliffs Resources idled operations at Wabush Mines.
Almost 400 workers were affected by the shutdown.
Labrador Iron Mines cited high production costs, along with low iron ore prices, as a problem.
The company also said in the statement that high-cost production would result in "major reductions in staff levels."
Approximately 175 people work at the mine and processing plants from April to November.
The James Mine is in the Schefferville-Menihek region of Labrador, near the Quebec border.