Wabush Mines has about three weeks left in its labour contract with the Steelworkers union. With no sign of a new deal, some people in the town of Wabush are worried.
Cliffs Natural Resources, the mine's parent company, is cutting costs.
"It is something that I wake up thinking about, and go to bed every night thinking about as well, and our council as well," said Wabush Mayor Colin Vardy.
"An upset of industry in a one-industry town will have detrimental impacts."
Labrador Affairs Minister Nick McGrath said government met with the mine's owner and there wasn't much talk about the future at the meeting.
"We really haven't been given an update from the fall as to what will happen, except that when we did meet with the company last week through correspondents, they told us they would be meeting later this month with their shareholders," McGrath told CBC.
Cliffs' largest shareholder recently told the company to significantly cut costs.
Its fourth quarter financial results for 2013 will be released next week.