Labrador MP Yvonne Jones wants the provincial government to build a transmission line from the Churchill Falls hydroelectric development to western Labrador.
Jones said she has met with mining company officials in western Labrador and she said they have told her that shortage of power could limit growth.
"We are very concerned because we know how volatile the mining industry is, we know that it's very difficult to raise capital for investments and we want to ensure that these companies have the infrastructure they need to be able to move forward immediately," said Jones.
Jones said a transmission line would cost $300 million, but the expense can be covered by the industrial rate payers, not residents.
Jones concerned about rate hike proposal
As well, Jones said she wants the provincial government to intervene in Newfoundland and Labrador Hydro's proposal to raise electricity rates in Labrador.
Jones said Labrador residents could be paying another 25 per cent for electricity, while Muskrat Falls electricity goes elsewhere.
"We feel that government is really testing the temperament of Labradorians by imposing increases on our electrical rates while at the same time they're pushing forward with major developments like Muskrat Falls," said Jones.
"These developments will see power exported from Labrador to meet the needs of the island of Newfoundland and to other regions of Atlantic Canada," she said.
Hydro officials have said that the rate fee increase is required to help pay for the infrastructure required to support the economic boom in Labrador.