Dozens of people on Labrador's north coast are out of work because a Labradorite quarry near Nain and a stone plant in Hopedale, where it is processed, haven't been making enough money to operate this summer.

A sample of stone containing Labradorite from Ten Mile Bay, Labrador, 10 kilometres south of Nain. (Government of Newfoundland and Labrador)

The Labrador Inuit Capital Strategy Trust — an arm of the Nunatsiavut government, which governs the semi-autonomous aboriginal territory — owns the quarry at Ten Mile Bay and the stone plant.

Its officials said Friday that its Labradorite facilities won't be hiring 36 seasonal workers this year because the operations are losing money. More than $1 million was lost last year alone.

"It was difficult for us to get additional capital to keep it open. Under the circumstances we had to make this decision right now," Clint Davis, chair of the Labrador Inuit Capital Strategy Trust, said Friday.

"Over the past few months, the trust has been desperately working to find a new business partner and customers for its existing inventory. These efforts couldn't be completed in time to make Ten Mile Bay operational this season."

Labradorite, a type of stone that contains iridescent patches of blue, is used in jewelry and in large, cut slabs as a building material.

The new trustees of the Labrador Inuit Capital Strategy Trust are now developing a long-term strategic and business plan for the operations.

"This hasn't occurred in the past and has led to some poor decisions that have put the trust and members of our community in a difficult situation," Davis said in a news release Friday.

"As a trust, we have a responsibility to stop accumulating debt. With the new policies we will make better decisions, leading to more profitable and sustainable businesses to employ members of our community."

Davis said he hopes the quarry and processing plant can reopen next year by expanding into new markets, such as providing stone countertops for new homes.

"The potential for residential housing development, I think that's something we could capitalize on. We haven't done the necessary research around that yet, but that's something that we will be exploring," he said.

Davis said the Labrador Inuit Development Corporation is trying to find other work for people hired by the quarry and stone plant in the past.