Premier Tom Marshall announced Thursday that Newfoundland and Labrador Hydro has been given the green light to proceed with the construction of a third transmission line between Churchill Falls and Labrador West.

"We will be moving forward with the construction of a third line to supply power from Churchill Falls to western Labrador,” said Marshall.

The construction of an additional transmission line will help to supply power for new developments, such as the Kami Iron Ore Project.

This week, Alderon Iron Ore Corp. said if its Kami mine goes ahead, it could hire every single worker facing a layoff at the idled Wabush Mines site.

Nearly 400 workers at Wabush Mines lost their jobs this week when U.S.-based parent company Cliffs Natural Resources said it could no longer afford to cover the operating costs at the aging mine on Tuesday.

According to a government news release, all of the planning, design and construction activities pertaining to the transmission line will be exempt from review by the PUB.