All three phases of the expansion are expected bring IOC's annual concentrate capacity to 26 million tonnes. (Iron Ore Company of Canada)

The Iron Ore Company of Canada is restarting the second phase of a multi-million dollar expansion program in western Labrador that was put on hold in 2008 during the global financial crisis.

IOC said Tuesday that the second part of the three-phase expansion will start immediately because of the short construction season in western Labrador.

During the second phase, which is expected to cost $289 million, the company is developing new facilities in Labrador City and Quebec. The company will install new mining equipment and rail cars.

Last May, IOC said it will resume the first phase of an expansion project in western Labrador.

The project ground to a sudden halt in 2008, when demand for steel—and the pellet iron that IOC produces—nose-dived in the wake of the financial crisis.

In May, IOC president and CEO Zoe Yujnovich said shareholders approved phase one of the expansion–a $435 million plan to increase concentrate production by an extra four million tonnes by 2012.

The company said that when the three-stage expansion is completed annual production at its western Labrador mine will increase to 26 million tonnes.

IOC is one of the world's largest producers of iron ore pellets. It makes iron ore pellets for steel producers in North America, Europe and Asia.